One of the flagship measures of Morocco's Finance Law 2026: since 1 January 2026, basic pension income from CNSS, CMR, and RCAR is completely exempt from income tax (IR). In 2025, a 50% reduction applied; in 2026, the exemption becomes total. This guide explains who benefits, what changed, and the practical impact.
Who benefits from the exemption?
| Scheme | Sector | 2026 Exemption |
|---|---|---|
| CNSS | Private sector | 100% exempt |
| CMR | Civil servants | 100% exempt |
| RCAR | State contract workers | 100% exempt |
| CIMR | Collective supplementary | Exempt if 8+ years of contributions and received from age 45 |
Around 165,000 retirees benefit from this reform, at an estimated Treasury cost of MAD 1.2 billion per year.
Worked example: net pension before vs after
A retiree with a MAD 5,000/month basic CNSS pension:
2025 (50% reduction): ~MAD 4,600 net (IR applied to half)
2026 (full exemption): MAD 5,000 net (zero IR on the basic pension)
The gain is the IR that previously applied to the taxable portion – a direct, permanent increase in net pension income.
What about supplementary pension income?
Pensions paid by other supplementary schemes (outside collective CIMR) remain subject to IR, but benefit from a 70% deduction capped at MAD 168,000 per year. So supplementary pensions are not fully exempt but are still lightly taxed. For how IR brackets apply to the remaining taxable part, see our IR guide.
Do you still need to file an annual tax return?
No, if your income comes exclusively from exempt pensions. Finance Law 2026 removes the annual filing obligation for these retirees. This also applies if your total supplementary pension income does not exceed MAD 40,000 per year.
If you receive other income alongside your pension (rental income, capital gains, etc.), you must still file your annual return – for example, for rental withholding.
The step-by-step reform
2024: 55% deduction on basic pensions
2025: 50% deduction + dependent allowance raised to MAD 500
2026: Full exemption + dependent allowance raised to MAD 600
FAQ
Are all pensions exempt from IR in 2026?
Basic pensions (CNSS/CMR/RCAR) are 100% exempt. Supplementary pensions keep a 70% deduction (capped at MAD 168,000/year) and remain partly taxable.
Do exempt retirees still file a tax return?
Not if their income is exclusively from exempt pensions (or supplementary pension under MAD 40,000/year). Other income triggers the filing obligation.
Does this apply to Moroccans residing abroad (MRE)?
The exemption applies to the basic pensions paid by the Moroccan schemes, regardless of residence – but MRE should also check any tax treaty with their country of residence.
Sources
- Direction Générale des Impôts (DGI) – tax.gov.ma
- Loi de Finances n° 50-25 pour 2026 – finances.gov.ma
- Caisse Nationale de Sécurité Sociale (CNSS) – cnss.ma
Disclaimer
This article is for general information only and does not constitute tax or legal advice. Contact the DGI or a certified accountant for your personal situation.
Salah-eddine covers personal income tax, salary calculations, and social security in Morocco. His goal is to make complex tax brackets and pay-slip deductions understandable for every Moroccan employee.
