State Taxation Administration told a State Council press briefing that the 2025
individual income tax reconciliation, which closed on June 30, produced refunds
of more than 150 billion yuan to over 100 million taxpayers. More than 200
million taxpayers filed reconciliation returns, a 4.38% YoY increase. After the
60,000 yuan basic deduction plus social insurance, housing fund and special
additional deductions, taxpayers with annual income ≤120,000 yuan are largely
exempt or pay minimal tax; over 70% of that cohort owed no tax after
reconciliation. Among taxpayers who still owed tax, more than 60% were taxed at
the 3% bracket, reflecting that recent IIT adjustments have further concentrated
benefits on lower-income earners.
