(Yicai) Feb. 18 -- Guangdong province beat Shanghai last year to once more head China’s leaderboard for the biggest personal income tax take, according to data compiled by Yicai.

Guangdong’s income tax revenue rose 0.4 percent year on year to CNY95 billion (USD13.1 billion) in 2024. Shanghai, which ranked first last year, collected CNY94.6 billion, a 0.7 percent dip.

Beijing came in third with CNY76.6 billion, despite a 0.9 percent decline. The provinces of Zhejiang, Jiangsu, Shandong, Sichuan, Shaanxi, Fujian, and Hubei were fourth to 10th, each exceeding CNY10 billion (USD1.4 billion) each. Seven of the top 10 regions are in the east of China.

Several regions saw income tax revenues fall because of tax cuts, lackluster residential property sales, and lower employee earnings in some industries. The largest decline was logged by Shandong at 10 percent, followed by Shaanxi at 3.6 percent and Zhejiang at 2.8 percent.

In China, the central and local governments collect personal income tax on a 60:40 ratio. The figures above only include that collected by local authorities. About 60 percent of the income tax take comes from salaries and wages, with the rest mainly from levies on property sales as well as dividends, interest, and business income.

Eastern provinces generate more personal income tax revenues from property sales and dividends, interest, and business income because of their advanced economies, concentrations of wealth, and thriving private sectors.

Moreover, the higher a person’s income, the higher the tax that needs to be paid. According to data from the National Bureau of Statistics, Shanghai, Beijing, Zhejiang, and Guangdong were the top provincial-level regions for per capita disposable income last year.

Personal incomes and the tax take are expected to grow this year as the economy continues to recover, according to local authorities. For example, Hubei and Guangdong forecast 11.4 percent and 5.5 percent increases, respectively.

Editor: Futura Costaglione