The celebrated director has 30 days to pay his penalty for breaching the country's longstanding family planning laws by having three children.
China has fined director Zhang Yimou $1.2 million for violating the country's one-child policy.
In December, Zhang publicly admitted to fathering three children with his wife, actress Chen Ting.
The family planning bureau in Wuxi city of Jiangsu province sent Zhang a letter mandating the "social maintenance fee," according to a post on the office's Weibo account.
The fine for breaking China's one-child law, instituted in the 1970s to control China's booming population, is pegged according to the parents' income. According to the family planning office, the couple made $580,000 in 2000, 2003 and 2005, the years their children were born.