Compare taxes and see how much you save moving from China to USA
China's progressive Individual Income Tax (IIT) system is more expensive than US federal income tax at every income level covered in this comparison. At $100,000 USD equivalent, China's IIT reaches $26,000 compared to US federal tax of $17,400 — a gap of $8,600. China also mandates employee social insurance contributions of approximately 10.5% (pension, medical, unemployment), which further widens the effective cost gap for expats. American expatriates in China face a dual filing obligation: the US taxes citizens on worldwide income, and while the US-China tax treaty is more limited than other US treaties, the Foreign Tax Credit generally prevents double taxation. China's 183-day rule for tax residency and recent aggressive enforcement of tax reporting for high-income earners make compliance critical.
Progressive Individual Income Tax
7 progressive brackets from 3% to 45% on employment income
Federal Income Tax
Federal progressive 10-37%; state tax additional — only federal shown here
At $100,000 income:
China's individual income tax ($26,000 at $100K USD) is approximately $8,600 higher than US federal tax ($17,400). China also has mandatory social insurance contributions (~10.5% employee). Americans in China must still file US federal returns — the US-China tax treaty (limited) and foreign tax credits prevent double taxation in most cases.
| Income | CN Tax | US Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $8,000 | $4,500 | -$3,500 China costs more | -$35,000 |
| $75,000 | $15,000 | $8,500 | -$6,500 China costs more | -$65,000 |
| $100,000 | $26,000 | $17,400 | -$8,600 China costs more | -$86,000 |
| $150,000 | $45,000 | $29,000 | -$16,000 China costs more | -$160,000 |
| $250,000 | $85,000 | $55,000 | -$30,000 China costs more | -$300,000 |
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.8 Trustpilot · 1,625 reviews
Americans in China must still file a US tax return every year. Greenback's CPAs specialise exclusively in US expat returns: FEIE, foreign tax credits, FBAR, and state filing requirements. Fixed pricing, no surprises.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
Get Your US Expat Taxes Filed →★ 4.8 Trustpilot · 2,681 reviews
25 years filing US expat taxes across 190+ countries. Two-CPA review process. 50,000+ clients. 4.8 stars / 2,681 Trustpilot reviews.
⚠ Best for existing expats. If you're still in the US, a local CPA may be more cost-effective.
File With TFX — Expert Expat CPAs →★ 4.3 Trustpilot · 287,413 reviews
Moving money between the US and China? Wise offers mid-market exchange rates with low transparent fees — typically 4-8x cheaper than banks for international transfers.
⚠ For currency exchange only — not a bank account replacement.
Transfer Money Internationally →China uses a 183-day rule to determine tax residency: if you spend 183 or more days in China in a calendar year, you are treated as a tax resident and are liable for Chinese Individual Income Tax (IIT) on your worldwide income. If you spend fewer than 183 days in China, you are a non-resident and only Chinese-sourced income is taxable. For American expats, this rule is critical because exceeding the 183-day threshold triggers residency status that overlaps with the US citizen-based taxation system. Planning business travel and vacation schedules carefully around this threshold is a common tax strategy for China-based expats.
The US-China Income Tax Treaty (signed 1984) covers employment income, business profits, dividends, interest, royalties, pensions, and government salaries. It provides reduced withholding tax rates on dividends (10%) and interest (10%). However, the treaty is more limited than other US tax treaties in several respects: it does not include the broader tie-breaking provisions found in the US-Japan or US-UK treaties, and the Savings Clause means the US retains the right to tax its citizens as if the treaty did not exist. In practice, most American expats in China rely on the Foreign Tax Credit (rather than treaty exemptions) to avoid double taxation, since China's rates typically exceed US federal rates.
Yes. Americans with Chinese bank accounts must comply with both FBAR and FATCA reporting. FBAR (FinCEN Form 114) is required if the aggregate value of all foreign accounts exceeds $10,000 at any point during the year — filed separately from the tax return via FinCEN's BSA E-Filing System. FATCA (Form 8938, filed with your tax return) applies if foreign financial assets exceed $200,000 abroad year-end, or $300,000 at any point during the year (thresholds double for married couples). Chinese banks are FATCA-compliant and automatically report US account holders to the IRS. The penalties for non-compliance are severe — a $10,000 penalty per FBAR violation, rising to $100,000 or 50% of account balance for wilful violations.
China's social insurance system requires both employer and employee contributions across five schemes: pension (8% employee), medical insurance (2% employee + 3 yuan/month), unemployment (0.5% employee), work injury (employer only), and maternity (employer only). The total employee contribution is approximately 10.5% of salary. Foreign employees were previously exempt from some contributions, but China has extended full social insurance obligations to foreign workers, though enforcement varies by city. On-budget, social insurance significantly increases the total cost of employment in China relative to the headline IIT figures, making the US even more attractive on a total compensation basis.
The Foreign Earned Income Exclusion (FEIE) allows qualifying Americans abroad to exclude up to $126,500 (2024) of foreign-earned income from US taxation. To qualify, you must meet either the Bona Fide Residence Test (living in a foreign country as a resident for a full tax year) or the Physical Presence Test (being outside the US for 330 days in a 12-month period). Americans in China can generally qualify for FEIE. However, FEIE cannot be combined with the Foreign Tax Credit on the same income — you must choose one. Given China's high tax rates, many expats prefer the FTC because it directly offsets the higher Chinese taxes paid, whereas FEIE simply excludes income from US tax (valuable if Chinese tax is lower than US tax, which it is not).
China has significantly stepped up IIT enforcement since 2018, driven by reforms to the Individual Income Tax law that took effect in January 2019. The reforms introduced a new consolidated income concept (combining wages, self-employment, author's remuneration, and royalties) with steeper progressive rates at higher income bands. Golden weeks and year-end reconciliation filings are now mandatory for most employed workers. China's tax authorities have also intensified scrutiny of high-income individuals and cross-border income flows, particularly after high-profile cases involving celebrities and tech executives. Foreign expats with complex income structures — investment income, bonuses, RSUs — should ensure their Chinese tax filings are prepared by a qualified local tax professional.
Yes. The Foreign Tax Credit (Form 1116) allows Americans to offset their US tax liability dollar-for-dollar with creditable foreign taxes paid to China. To qualify, the Chinese tax must be an income tax (IIT qualifies), paid by the taxpayer, and not eligible for refund. Because China's IIT rates at $100,000+ income exceed US federal rates, the FTC typically covers all US liability — meaning most Americans in China owe $0 in additional US federal tax. However, the FTC has limitations: excess foreign tax credits can be carried forward 10 years or back 1 year, and different income baskets (passive vs general) limit how credits can be applied. A US expat tax specialist familiar with US-China taxation is strongly recommended.