Who this applies to (confirm you fit)

Region: Mainland China. These rules are under China individual income tax (IIT). BIK regimes elsewhere differ entirely; this tool does not apply.

Who: Foreign (including HK/Macao/Taiwan) employees working in China without a domicile there, and who are tax residents (183 days or more in China in a tax year). Non-residents use different monthly rates; this calculator does not apply.

How the exemption works: Housing rent and similar allowances received in kind or on a reimbursement basis can be tax-free up to a “reasonable” amount (invoices or payment vouchers required). In practice, Chinese tax authorities often treat “not exceeding 30%–35% of monthly salary” as reasonable, so this tool offers 30% and 1/3 as common caps. This preferential policy is currently extended through end of 2027. Tax residents must choose either BIK exemption or special additional deductions—not both.

Not limited to one employer: The logic was modeled on a large multinational’s BIK practice but applies equally to other employers offering BIK housing benefits.

This is a free, public conceptual calculator, not formal tax or legal advice. Final figures depend on company policy, local tax bureau interpretation, and professional advisors.

Annual after-tax net cash (salary − tax − rent, actual)

¥0/yr

Within tax-free cap

Tax-free cap amount

¥0

BIK benefit for this rent (tax saved vs. no policy)

¥0

Monthly after-tax net cash

¥0

Annual net cash (actual, with BIK) If no BIK: same rent fully taxable

How to read this: Within the tax-free cap, the gap between the two lines is tax saved thanks to BIK; rent still reduces net cash yuan for yuan—there is no discount on rent itself. Above the cap (grey dashed line), net cash falls faster because excess rent is also taxed. Assumptions: Tax-resident status; cumulative annual progressive withholding (2019 rate table, standard deduction 5,000/month); salary and rent constant all year. Non-residents (<183 days in China per year) use a different monthly table—this calculator does not apply. For illustration only, not formal tax advice.

Snapshot: three rent scenarios

Rent = 0 (no housing)

¥0

Rent = half of cap

¥0

Rent = cap (maxed out)

¥0

Annual after-tax net cash. Within the cap, each extra ¥1 of rent reduces this by ¥1—no tax discount, purely a cash-spending choice.

Unsure whether your company uses 30% or 1/3? Compare both.

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Cap = 30%

Cap = 1/3 (33.33%)

Rent at tax-free cap

¥0

Annual BIK benefit (tax saved vs. no policy)

¥0

Equivalent per month

¥0