The calculation method of individual income tax of individual industrial and commercial households is as follows:

Calculation formula: taxable income = total income-costs, expenses and losses-threshold

Taxable income = taxable income × applicable tax rate

The collection method of individual income tax of individual industrial and commercial households is as follows:

1. Audit collection:

Requirements

personal income tax rate table ii (applicable to business income)

annual taxable income tax rate (%)

1 5

2 over 3, yuan to 9, yuan; 1

3 over 9, yuan to 3, yuan; 2

4 over 3, yuan. yuan

35

Note: The annual taxable income mentioned in this table refers to the balance after deducting costs, expenses and losses from the total income of each tax year in accordance with the provisions of Article 6 of this Law.

2. Regular quota collection: it refers to the collection method of individual industrial and commercial households without account books, in which the tax authorities verify the taxable business volume or income of taxpayers in a certain operating period according to law and procedures, so as to determine their taxable amount. The factors affecting their personal income tax are turnover and personal income tax collection rate.