By Olivia Klimczyk — China Country Specialist, Premier TEFL
One of the biggest draws of teaching English in China is how far your salary stretches. With low rent, cheap public transport, and inexpensive food, most teachers live comfortably and still save a large portion of their income. This guide breaks down the real monthly cost of living for English teachers across different city tiers.
Monthly cost of living at a glance
| Expense | Tier 1 City (RMB) | Tier 2 City (RMB) | Tier 3 City (RMB) |
|---|---|---|---|
| Rent (1-bed apartment) | 5,000–8,000 | 2,500–4,500 | 1,500–2,800 |
| Food & groceries | 2,500–4,000 | 1,800–2,800 | 1,200–2,000 |
| Transport | 300–600 | 200–400 | 150–300 |
| Utilities & internet | 400–700 | 300–500 | 250–450 |
| Leisure & dining out | 1,500–3,000 | 1,000–2,000 | 700–1,300 |
| Estimated total | 9,700–16,300 | 5,800–10,200 | 3,950–6,850 |
Estimated monthly costs by city tier
Mid-range total monthly living costs (RMB):
How much can you save?
Because many schools provide free or subsidised housing, teachers routinely save 40–60% of their salary. A teacher in a Tier 2 city earning 16,000 RMB with housing covered can easily bank 8,000–10,000 RMB a month. Compare salaries in our guide to the highest-paying cities in China for TEFL teachers.
Tips to keep costs low
- Choose employers that include housing or a housing allowance.
- Eat local — street food and local restaurants cost a fraction of Western dining.
- Use metro and buses instead of taxis.
- Shop at local markets rather than imported-goods supermarkets.
- Consider a Tier 2 or Tier 3 city for the best salary-to-cost ratio.
Before you go
Make sure your paperwork is in order before arriving. Read our Z Visa for China step-by-step guide, and if you're weighing up other destinations, see Teaching in China vs Vietnam vs South Korea.
Frequently asked questions
How much does it cost to live in China as an English teacher?
Expect to spend around 5,800–16,300 RMB per month depending on the city tier. Tier 1 cities like Shanghai and Beijing are the most expensive, while Tier 3 cities are significantly cheaper.
Can you save money teaching English in China?
Yes. With housing often provided by the employer, most teachers save 40–60% of their monthly salary. In fact, many past Premier TEFL teachers report saving toward the higher end of that range.
Is rent expensive in China?
Rent is the biggest expense but varies widely, from 1,500 RMB in a small city to 8,000+ RMB in central Shanghai. Many schools cover or subsidise accommodation.
Cost of living by major city
Because "Tier 1" and "Tier 2" cover a wide range of places, it helps to look at real cities. Shanghai and Beijing sit firmly at the top end, where a central one-bedroom flat alone can swallow 6,000–8,000 RMB a month. Shenzhen and Guangzhou are similar, though slightly cheaper for food and rent in outer districts. Step down to cities like Chengdu, Hangzhou, Nanjing or Qingdao and your total monthly outlay typically falls to 6,000–9,000 RMB while still offering international restaurants, metro systems and strong teaching demand. In smaller Tier 3 cities such as Guilin, Kunming or Zhuhai, many teachers live very comfortably on 4,000–6,000 RMB and save the rest.
| City | Tier | Typical monthly cost (RMB) |
|---|---|---|
| Shanghai / Beijing | Tier 1 | 10,000–16,000 |
| Chengdu / Hangzhou | Tier 2 | 6,000–9,000 |
| Guilin / Kunming | Tier 3 | 4,000–6,000 |
What your salary looks like against these costs
Most native English speakers in China earn between 12,000 and 30,000 RMB per month, depending on the city, the type of school and your qualifications. Public schools and training centres usually pay 12,000–20,000 RMB, while international schools and universities can pay significantly more for experienced, degree-qualified teachers. When you compare these salaries against the living costs above, it becomes clear why China remains one of the most financially rewarding destinations for teachers: even in a Tier 1 city, a mid-range salary comfortably covers your expenses with room to spare.
Hidden costs to budget for
The headline figures rarely tell the whole story, so factor in a few extras before you commit. A rental deposit is usually two to three months' rent paid upfront, and agencies often charge a finder's fee equal to around half a month's rent. Health insurance, visa renewals and the occasional flight home add up over a year, and a VPN subscription (typically 60–100 RMB a month) is worth budgeting for if you want reliable access to Western sites and apps. Setting aside a small buffer for these one-off costs in your first two months will make settling in far smoother.
Tips for saving more
- Negotiate a housing allowance or free accommodation as part of your contract – it is the single biggest lever on your savings.
- Eat where the locals eat; street food and neighbourhood restaurants cost a fraction of Western-style venues.
- Use mobile payment apps and public transport rather than taxis to keep day-to-day spending low.
- Take on a few private tutoring hours or online lessons, which are in high demand and paid well.
Comparing your take-home lifestyle across city tiers
Where you choose to base yourself has a bigger impact on your quality of life than the headline salary alone. In Tier 1 cities like Shanghai and Beijing, salaries look impressive on paper, but rent, dining out and social activities can quietly absorb a large share of your monthly income. The trade-off is world-class infrastructure, international restaurants, direct flights home and a large expat community that makes settling in easier for first-time teachers. Tier 2 cities such as Chengdu, Hangzhou and Xi'an strike the best balance for most people: salaries remain strong, housing is often included, and day-to-day costs are noticeably lower, so a bigger slice of your pay stays in your pocket. Tier 3 cities offer the highest savings potential relative to living costs, though you should be comfortable using more Mandarin and living with fewer Western conveniences.
Managing your money and sending savings home
China is a largely cashless society, so most of your daily spending will run through mobile apps like WeChat Pay and Alipay, both of which now link easily to foreign cards and passports. Opening a local bank account is usually straightforward once you have your work permit and residence permit, and your school will often help with the paperwork. If you plan to send money home, factor in transfer limits and fees: many teachers use dedicated remittance services to move funds abroad at better rates than a standard bank wire. Keep digital and paper copies of your contract, payslips and tax receipts, as these make annual tax reconciliation and future visa renewals far simpler.
Realistic first-year budget example
Picture a newly qualified teacher on 16,000 RMB per month in a Tier 2 city with employer-provided housing. After spending roughly 2,500 RMB on food, 300 RMB on transport, 500 RMB on utilities and mobile data, and 2,000 RMB on entertainment, travel and incidentals, they are left with around 10,000 RMB to save or invest each month. Over a standard ten-month teaching contract, that adds up to a meaningful nest egg, even before any private tutoring or summer camp work. Building a small emergency fund in your first two months, before the savings really start to stack up, will give you breathing room for deposits, insurance and the occasional flight home.
Start your China teaching journey
A recognised 120-hour TEFL certificate is your first step to a well-paid, low-cost lifestyle in China. Get certified with Premier TEFL and start planning your move.
