According to the latest contents released by the two sessions of the people's Congress of the people's Republic of China, the state will continue to implement the policy of tax reduction and fee reduction in 2019, including value-added tax, personal income tax and social security rate. Many people don't know about the new individual income tax law in 2019. It is said that the monthly income of 10000 yuan can be tax-free. How can personal tax be deducted from the monthly income of 10000 yuan? Let's take a look at it.
The new individual income tax increases the starting point of individual income tax from 3500 yuan to 5000 yuan. At the same time, it expands the range of low-level tax rates and adds special additional deduction items. The starting point allows many low-income people not to pay individual income tax, while the latter two make middle-income people pay less personal income tax. Let's see the detailed calculation process.
The calculation formula of individual income tax is as follows: individual income tax payable = (wage payable - threshold of individual income tax - special additional deduction - social security fee) & times; individual income tax rate.
According to the new tax law, special additional deductions, including expenses for children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, supporting the elderly, etc. the specific scope, standard and implementation steps shall be determined by the State Council and reported to the Standing Committee of the National People's Congress for the record.
What is the special additional deduction of individual income tax? In short, the following items are the special additional deduction of individual income tax:
(1) Special additional deduction for children's education: a standard quota deduction of 1000 yuan per month (12000 yuan per year) per child, mainly including relevant expenses for preschool education and academic education.
(2) Special additional deduction for continuing education: 4800 yuan per year (400 yuan per month) during academic education period;
(3) Special additional deduction for serious illness medical treatment: the part of medical expenses with individual burden exceeding 15000 yuan will be deducted by 5000 yuan / month (60000 yuan / year);
(4) Special additional deduction for housing loan interest / housing rent: 1000 yuan / month or 1200 yuan / month;
(5) Special additional deduction for supporting the elderly: 2000 yuan / month for supporting parents over 60 years old and other legal supporters. If an office worker earning 10000 yuan a month meets most of the conditions for special additional deduction, the monthly exemption will be increased from 5000 yuan to 9600 yuan. After deducting the social security fee, the monthly income of 10000 yuan will not need to pay individual income tax.