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

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.