1. The applicable tax rate of individual income tax is stipulated in three different tax rates according to different tax items: 1. Income from wages and salaries shall be taxed at a progressive tax rate of 7 levels, and shall be calculated according to the monthly taxable income. The tax rate is classified according to the taxable income of individual monthly wages and salaries, with the highest level being 45%, the lowest level being 3%, and the ***7 level. 2. Income from production and operation of individual industrial and commercial households and enterprises and institutions shall be subject to a progressive tax rate of 5 levels. The income from production and operation of individual industrial and commercial households and the annual taxable income from contracted operation and lease operation of enterprises and institutions are classified into grades, with the lowest grade being 5%, the highest grade being 35%, and the first grade being 5. 3. Proportional tax rate. Personal income tax is levied on income from remuneration for authors, remuneration for labor services, royalties, interest, dividends, bonus income, income from property leasing, income from property transfer, accidental income and other income, and the proportional tax rate of 20% is applicable. Among them, the proportional tax rate of 20% is applicable to the income from remuneration, and the tax payable is reduced by 30%; If the one-time income from labor remuneration is abnormally high, except for 20% tax, the part of taxable income exceeding 20,000 yuan to 50,000 yuan shall be calculated according to the provisions of the tax law, and then levied according to 50% of the taxable amount; More than 50,000 yuan, plus 100%. "two. The tax threshold standard is based on the actual living expenses of urban residents. According to the relevant data of the National Bureau of Statistics, in 2004, the annual average wage of urban workers in China was 16024 yuan, and the annual per capita consumption expenditure of urban residents was 7 182 yuan. According to the per capita burden rate 1.9 1, the annual per capita household consumption expenditure of urban workers is 13766. The effect of tax policy China's personal income tax system has always been based on the principle of "living within our means". More work and more pay, less work and less pay, embodies the spirit of the state's policy of regulating social distribution. According to the survey of 55,000 households in 500 cities in China by the National Bureau of Statistics, the annual per capita disposable income of low-income families, middle-income families, middle-income families, middle-income families and high-income families in 2004 was 3,642 yuan, 6,024 yuan, 8 166 yuan,1kloc-0/yuan respectively. Financial affordability Individual income tax revenue will be shared by the central and local governments on June 4th. According to the data of 2004, raising the deduction standard to 1500 yuan will reduce the fiscal revenue by more than 20 billion yuan. The financial situation in different regions of China is unbalanced, with strong financial strength in the eastern region and weak financial strength in the central and western regions. Therefore, the adjustment of the deduction standard should also take into account the financial affordability of each region. Three. Tax reduction and exemption policy The tax reduction and exemption policy is mainly implemented in three aspects. The tax threshold has been raised from 3,500 yuan to 5,000 yuan, and many office workers with wages below 5,000 yuan are exempt from paying taxes; Expand the scope of low tax rate, and many office workers with income of 5000- 10000 yuan will pay less taxes; Adding a special tax deduction before tax, office workers pay less tax, and the rules of 20 19 special tax deduction are more complicated. Let's look at the details. On February 22, 65438, the Interim Measures for Special Additional Deduction of Individual Income Tax was promulgated. According to the contents of the Measures, the special additional deduction of personal income tax mainly includes six items: children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, and supporting the elderly. Deduction method is implemented from 20 19 10 1. Critical illness medical treatment: this is the annual limit deduction, and the annual limit is 80,000 yuan. I, my spouse and children's serious illness medical treatment can be used for special additional deduction, and truthfully declare the deduction amount. Housing rent: municipalities directly under the central government, provincial capitals, cities with separate plans and other cities determined by the State Council 1.500/ month; The registered population of a municipal district 1 10,000 or more is 1 100 yuan/month. Children's education: the amount is 65,438+0,000 yuan for each child before they reach the age of 3. One parent can deduct 1 0,000 yuan or both parents can deduct 500 yuan separately, so as to achieve the purpose of tax exemption for both parties. Continuing education: for those who need to continue their studies at undergraduate level or below, the deduction limit is 400 yuan, but the deduction period of equivalent education shall not exceed 48 months, and the special additional deduction is 3,600 yuan for professional technology and professional skills training in the year of obtaining evidence. Housing loan: the special additional deduction condition is the interest of the first home loan, and the deduction period does not exceed 20 years. The monthly limit is 1 1,000 yuan, which can be deducted by one spouse or 500 yuan by both parties. Support for the elderly: According to the relevant provisions of the Interim Measures for Tax Deduction, if there are one or more elderly people in the family who need support, this deduction can be made, and the deduction limit is 2,000 yuan. If you are an only child, you can deduct 2000 yuan. If there are multiple children, their respective deductions can be negotiated, but the deduction for each child shall not exceed 1000 yuan. According to this standard, the maximum annual deduction can reach154,400 yuan (24,000 yuan for children, 8,400 yuan for adult continuing education, 80,000 yuan for serious illness,18,000 yuan for renting a house and 24,000 yuan for supporting the elderly). Based on the annual maximum deduction standard, after deducting other deductions such as three insurances and one gold, the annual income of 200,000 yuan can be reduced by 1 1480 yuan, and the annual income exceeds11000 million yuan, which can reduce the tax by more than 60,000 yuan per year. Individual income tax will stipulate different tax rates according to different tax items. The scope of application of the threshold changes with the change of the tax threshold. The above is all the contents of the applicable tax rate for the tax threshold.

Legal objectivity:

Individual Income Tax Law of the People's Republic of China

Article 6

Calculation of taxable income:

(1) For the comprehensive income of individual residents, the taxable income shall be the income after deducting expenses of 60,000 yuan, special additional deductions and other deductions determined according to law.

(2) For the income from wages and salaries of non-resident individuals, the taxable income shall be the balance of monthly income after deducting expenses of 5,000 yuan;

Income from remuneration for labor services, remuneration for manuscripts and royalties shall be taxed.

(3) For operating income, the taxable income shall be the balance of the total income in each tax year after deducting costs, expenses and losses.