Morocco's income tax (IR) is calculated on a progressive six-bracket scale. Higher net taxable income means a higher marginal rate, but each lower bracket is still taxed at its own rate. Here is the scale in force for 2026. For the broader concepts (who pays, how IR fits with CNSS/AMO), start with our IR overview; this article goes deep on the numbers.
Annual income tax scale 2026
| Annual income bracket (MAD) | Marginal rate |
|---|---|
| 0 to 40,000 | 0% |
| 40,001 to 60,000 | 10% |
| 60,001 to 80,000 | 20% |
| 80,001 to 100,000 | 30% |
| 100,001 to 180,000 | 34% |
| Over 180,000 | 37% |
Net taxable income is calculated after deducting social contributions (CNSS + AMO) and the standard professional expense allowance. The 2026 Finance Law widened the brackets and lowered the top rate from 38% to 37%.
Standard professional expenses deduction
Employees automatically benefit from a 20% deduction on gross salary, capped at MAD 30,000 per year (MAD 2,500/month).
Net taxable income = Gross − CNSS − AMO − 20% allowance (max MAD 30,000)
Dependent person deductions (2026)
Finance Law 2026 raised the per-dependent deduction from MAD 500 to MAD 600 per year:
| Situation | Annual deduction |
|---|---|
| Spouse | MAD 600 |
| Each dependent child (max 6) | MAD 600 |
| Total cap | MAD 3,600/year |
Worked example: gross salary MAD 12,000/month
Monthly gross salary MAD 12,000.00
- CNSS (4.48%) - MAD 537.60
- AMO (2.26%) - MAD 271.20
= Base before allowance MAD 11,191.20
- 20% allowance - MAD 2,238.24 (< MAD 2,500 ✓)
= Net taxable income MAD 8,952.96
(≈ MAD 107,436/year)
Monthly IR estimate (annual brackets ÷ 12):
0 - MAD 3,333/month → MAD 0
MAD 3,333 - 5,000/month → MAD 167 (10%)
MAD 5,000 - 6,667/month → MAD 333 (20%)
MAD 6,667 - 8,333/month → MAD 500 (30%)
MAD 8,333 - 8,953/month → MAD 211 (34%)
--------
Gross IR estimate ~ MAD 1,211/month
- Spouse deduction (if 1) - MAD 50 (600÷12)
Net IR estimate ~ MAD 1,161/month
A full IR simulator (with all deductions) is in development on Finance Morocco Help. To see how these brackets sit inside a complete payslip, read our gross vs net salary guide.
FAQ
What is the marginal vs average tax rate in Morocco?
Your marginal rate is the rate on your top bracket only. Your average rate is your total IR divided by your total income – always lower than the marginal rate.
Did the IR brackets change in 2026?
Yes. The 2026 Finance Law widened the brackets and cut the top marginal rate from 38% to 37%. The dependent deduction also rose from MAD 500 to MAD 600.
Is the 20% professional-expense allowance capped?
Yes – at MAD 30,000 per year (MAD 2,500/month). High earners hit the cap quickly.
Sources
- Direction Générale des Impôts (DGI) – tax.gov.ma
- Ministère de l'Économie et des Finances – 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. Consult a certified accountant or the DGI 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.
