Teach in China: Salary, Taxation & Cost of Living

Let’s take a look at the average teaching salaries you can expect to earn if you teach in China. We’ll also explore how taxation works for foreigners and the average cost of living. These figures can help you determine if China is the right choice for your family.

In 2025, total compensation in Tier-1 cities (Beijing, Shanghai, Guangzhou, Shenzhen) for foreign teachers typically ranges USD ~32,000–67,000 annually (roughly USD 2,700–5,500/month), depending on experience and position. Senior/depart­ment-head roles can expect more. At the highest tier, total compensation can exceed USD $60k–$75k/year.

Packages and benefits at top-tier schools often include annual return flights to your home country (or equivalent), bonuses, housing stipends, global health insurance, and tuition costs for your dependent children.

Mid-tier and second-tier cities usually offer lower base salaries (pre-benefits), of approximately USD 2,000–3,500/month, with benefit packages varying by school and contract.

Tax System & Deductions

China’s tax laws for foreign workers have undergone major reforms since 2019. These changes have seen some phasing out of previously generous expat exemptions.

Some tax-free expat allowances (housing, children’s tuition, flights) have been extended until the end of 2027, but this varies by city and employer. Application varies by city; always confirm with your employer’s HR department.

China’s Individual Income Tax (IIT) applies to foreign staff classified as residents (typically those staying ≥183 days per year). Taxable income includes salary, bonuses, and allowances (if not exempted). Rate is progressive (3–45%), and employers usually withhold monthly tax.

Many international schools offer private or contractual pension/insurance schemes in lieu of local social-insurance contributions for expatriate teachers — check your contract carefully.

• Tax Residency: Anyone staying more than 183 days in a calendar year is considered a tax resident.
• Income Tax: Progressive rates range from 3% to 45%, although many teachers fall within the 10–25% range.
• Benefits: There are still schools offering tax-optimised structures for housing, flights, and education allowances.
• Withholding: Income tax is typically withheld from your pay by employers every month.
• Social Insurance: Contributions may be required depending on your location and the type of contract you’re on. Most large international schools opt out of social insurance for foreign hires, replacing it with private insurance plans.
• Professional Tax Advice: Strongly recommended, especially if your school doesn’t offer full support.

Housing Benefits

• Most international schools include housing or a housing allowance, especially in Tier 1 and Tier 2 cities. Larger cities (Beijing, Shanghai, Guangzhou) have premium rents, while smaller cities typically offer more affordable and spacious options.
• Allowance Range: Ranges from USD $600 – $2,000 per month in Tier 2 cities, depending on the city and your school. In Tier 1 cities, housing allowances typically range from USD $1,200–$3,000+ per month.
• Popular expat neighbourhoods include:
  • Beijing: Sanlitun, Shunyi, Chaoyang
  • Shanghai: Jing’an, Xuhui, Pudong (Jinqiao area for families)
  • Chengdu: Tongzilin, Gaoxin
  • Hangzhou: Binjiang, Xihu

When you teach in China, some schools offer fully furnished apartments. Other schools offer relocation support and put you in touch with local real estate agents.

Cost of Living

China’s cost of living varies dramatically by region and lifestyle. For example, if you live in Shanghai, the cost may be comparable to some European cities. While cities like Chengdu or Nanjing are far more affordable, especially for families.

• Food & Dining:
  • Local street food and casual dining are very affordable.
  • International restaurants and imported groceries can be pricey, especially in Tier 1 cities.
• Utilities:
  • Moderate; electricity, gas, and internet are reliable and relatively cheap.
• Transportation:
  • Public transport (metro, buses) is efficient and low-cost.
  • Didi (China’s rideshare app) is widely used.
  • Some schools offer daily transport or shuttle services.
• Healthcare:
  • Private healthcare is usually good quality in major cities; most schools offer international health insurance.
• Savings Potential:
  • Teachers in China can typically save between USD $8,000 – $25,000 annually, depending on their salary, location, and spending habits.

Visa & Work Permits

To teach legally at an international school in China you must hold a Z Visa (work visa) plus a valid work permit / foreign-staff residence permit. Your employer (school) usually sponsors the visa application — you must submit a valid bachelor’s degree, a clean police background check, and medical examination results; all documents often need translation and authentication before the application. Never start teaching on a tourist or business visa; doing so is illegal and can lead to fines, deportation, or visa bans.

To qualify for a Z Visa, you’ll generally need:

• A Bachelor’s degree (in any subject, but education-related is often preferred)
• Two years of post-degree teaching experience (some provinces/schools may waive this for licensed teachers or those with advanced degrees)
• Clean police clearance from your home country (and anywhere else you’ve been living recently)
• Medical check (initially in your home country, repeated in China upon arrival)
• Authenticated (legalised) documents: including your degree and police check
• You must have a clean home-country police check + police check from the country you’ve lived in the past year.
• Some provinces require your passport to have 12–18 months validity.

As a teacher, your school will usually sponsor and coordinate the visa process for you. But it can be lengthy and bureaucratic, and delays can be common.

Entering on a tourist visa and switching to a work visa inside China used to be common. However, it’s now strongly discouraged. It’s usually not permitted under current immigration enforcement. It may lead to fines, deportation, or bans. Be wary of any employers recommending this option when offering you a job. Reputable international schools will never ask you to enter China on a tourist or business visa. If a school suggests this, treat it as a red flag.

Spouses and children can apply for S1 (long-term) or S2 (short-term) dependent visas. Spouses looking to work must secure their own job offer and be sponsored for a separate Z visa. Some provinces require spouses to leave China to convert an S1/S2 visa into a Z visa.

We thought we’d head to China for only a couple of years, but we ended up staying nearly 6 because we enjoyed it so much! The salary package was very generous, and the health insurance was outstanding. The best part was that our school had a strong sense of family and community, and we made lifelong friends – it’s cliched, but they became the village that helped raise our kids, and we felt less far from home. Families considering a move to China should look for schools that value employing other families, as the community and connection is super important.

teaching mum (two daughters & a trailing spouse), formerly based in Suzhou, China

How Tiered Cities Work in China

If you’re considering moving to China, you may have heard the terms ‘Tier 1’ and ‘Tier 2’ cities. These tiers are not official government designations, but widely used by expats and recruiters. Let’s take a closer look at what these terms mean, particularly for expat families.

Tier 1 Cities

These are China’s most developed and globally connected cities. They offer a high standard of living for expats, with strong infrastructure. Most also have well-established expat communities, which can make moving to China easier. But they’re also typically more expensive.

International schools are widely available and often well-funded in Tier 1 cities. You can also typically find Western conveniences to make life easier.

Tier 1 cities include:

• Beijing: the political and cultural capital
• Shanghai: China’s financial hub and a global city
• Guangzhou: a major trade and manufacturing centre in the south
• Shenzhen: a tech and innovation powerhouse near Hong Kong

Tier 2 Cities

These are rapidly developing regional hubs. They’re typically less international than Tier 1 cities, but can offer a great quality of life at a lower cost. Many expats enjoy the balance of urban life, with fewer crowds and less pollution (though still high compared to other countries), compared to Tier 1 cities.

You can usually access generous teaching packages with fewer living expenses. It’s also a slower pace of life than megacities, though these cities are still huge! There are fewer international schools, but it’s a growing network.

Examples of Tier 2 cities:

• Hangzhou: tech and cultural hub (home of Alibaba)
• Chengdu: capital of Sichuan, known for its lifestyle and spicy food
• Nanjing: a historic capital with strong educational institutions
• Wuhan: a major transport and education centre
• Qingdao: a coastal city with German heritage and a growing economy
• Suzhou: a scenic, historic city close to Shanghai
• Xiamen: a laid-back coastal city with growing international schools

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Challenges & Things to Know

• Language Barrier: Mandarin is essential for daily tasks outside the expat bubble. Translation apps help!
• Pollution: Use air purifiers and follow air quality indexes. Some cities are far better than others.
• Internet Restrictions: Many sites (Google, Facebook, Instagram, YouTube) are blocked. VPNs are essential.
• Education Transitions: Not all schools align neatly with home curricula, so do your homework on curriculum continuity.
• Bureaucracy: Expect red tape when opening a bank account, registering your residence, or renewing your visa.
• Culture Shock: Different communication styles, expectations around privacy, and work pace may require adjustment.

China is a tough place to live if you don’t speak the language. Locals don’t care or proactively seek to be friends with you or your family. Maybe it is the location, given we’re located in a tourist city, there are many who come and go.

current teacher in china (with teaching partner and three children)

Teach in China: Is It Right for You?

Teaching in China offers a unique mix of professional opportunities, cultural immersion, and lifestyle perks. Top-tier packages, excellent international schools, and access to one of the world’s richest cultures make it an attractive choice for many families.

China is ideal if you:

• Value financial savings and professional development
• Enjoy fast-paced, modern cities and rich history
• Are open to navigating bureaucracy and cultural differences
• Have or are open to learning basic Mandarin for smoother integration

Families benefit from a child-centric culture, tight-knit expat communities, and diverse experiences that range from mountain hiking to visiting panda sanctuaries. Despite the challenges, many teachers stay beyond their original contracts because the country offers a great mix of work, life, and adventure.