Morocco’s Proposed Income Tax Reform Raises Salaried Workers Exemption to MAD 40,000
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The Arab Post
- . October 22, 2026
- . Update: October 22, 2026 7:40 pm
A significant restructuring of Moroccan fiscal system is planned for the 2026 tax year. Morocco income tax reform, The government of Morocco is going after higher prices and holding back consumer spending with its proposed income tax reform, which will give a bigger tax benefit to salaried workers.
The new system, which came into effect in 2006, now increases the overall tax exemption limit to MAD 40,000 per annum on net taxable income, per individual, and by MAD 200,000 for each family, according to the Direction Générale des Impôts (DGI). The amount is a significant 33% higher than the previous fiscal year’s ceiling of MAD 30,000.
As a result, all Moroccans who make up to MAD 40,000 a year (around MAD 3,333 a month) will now pay no national income tax.
The New Moroccan Tax Brackets Scale will take effect on 1 January 2017.
How the New Moroccan Tax Brackets Scale – Morocco income tax reform
The 10% tax rate is just for income coming in between MAD 40,001 and MAD 60,000, increasing to 20%, 30%, and 34% for the next income brackets. Most significantly, the highest marginal tax rate (for persons with a net taxable income over MAD 180,000 per year) has been lowered, with the new rate of 37% being permanent.
The Direction Générale des Impôts must have employers calculate take-home pay on monthly slips by multiplying the income by the bracket rate then subtracting a fixed amount from each bracket.
The Deductions for Families and Professionals have been expanded.The deductions for families and professionals have been expanded.
Expanded Deductions for Families and Professionals
In addition to the modified base brackets there are noticeably increased deductions for family-related costs. Hespress English explains that the rate of tax reduction per dependent has been increased from MAD 360 per annum to MAD 500 per annum.
This important family deduction is only applicable for a maximum of six dependents and is capped at MAD 3,000 per year, which will allow larger families to benefit from an additional deduction of their net income.
In addition, the state has adjusted the allowances for expenses of professionals. If one’s gross annual income is not exceeding MAD 78,000, the employees may now deduct 35% of their taxable income for professional expenses, according to the state-owned Maghreb Arabe Presse (MAP). Those whose income exceeds the MAD 78,000 limit can claim a maximum of MAD 35,000 for professional expenses each year, with a maximum of 25%.
All of these together are the biggest tax reform change in the national tax code in years. The state will extend the exemption for salaried workers, add adjustments to the highest tax rates in Morocco, without putting at risk the country’s tax revenues, to provide broad-based economic support. Companies are encouraged to refer to the new General Tax Code and recent bulletins issued by the Moroccan Government Portal, for detailed compliance rules.
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