Income tax in Morocco – Impôt sur le Revenu (IR) – is a progressive tax: the more you earn, the higher the rate applied to each additional band of income, while lower bands keep their lower rate. Understanding how the brackets, social contributions, and deductions interact is what lets you estimate your net pay and plan ahead. This guide explains the system in plain language for the 2026 scale.
Who pays income tax
Most income earned by individuals in Morocco is subject to IR. The main categories are:
- Salaries and wages – employers withhold IR at source every month via the Retenue à la source (RAS) mechanism and report it to the Direction Générale des Impôts (DGI).
- Professional income – auto-entrepreneurs under the Contribution Professionnelle Unique (CPU) and professionals in the Régime du Résultat Réel.
- Rental income – subject to a specific withholding on rents since 2024.
- Pension income – though many pensions benefit from a partial or full exemption (see our pension IR exemption guide).
- Capital income – dividends and interest, usually withheld at source.
If you are a salaried employee, you rarely file IR yourself: your employer calculates, withholds, and pays it on your behalf, then regularizes at year-end.
The 2026 income tax scale
Morocco uses a banded, progressive scale. Each portion of your net taxable income is taxed at the rate for its band, not your whole income at a single rate. The 2026 Finance Law widened the brackets and lowered the top marginal rate from 38% to 37%.
| Annual net taxable income (MAD) | Marginal rate |
|---|---|
| 0 - 40,000 | 0% |
| 40,001 - 60,000 | 10% |
| 60,001 - 80,000 | 20% |
| 80,001 - 100,000 | 30% |
| 100,001 - 180,000 | 34% |
| Over 180,000 | 37% |
Rates and bands are set each year by the Loi de Finances. Always confirm the current figures with the DGI before relying on them. For the full deduction details and a line-by-line calculation, see our 2026 IR brackets guide.
How net taxable income is computed
IR is not charged on your gross salary. Several amounts are deducted first to arrive at the net taxable income:
Net taxable income = Gross salary
− CNSS (employee share)
− AMO (employee share)
− 20% professional-expense allowance (capped)
− dependent-person deductions
- CNSS – the social-security contribution (employee share 4.48%, up to a monthly salary ceiling set by the CNSS).
- AMO – mandatory health insurance (employee share 2.26%).
- Professional-expense allowance – an automatic 20% deduction on gross salary, capped at MAD 30,000 per year (MAD 2,500/month).
- Dependent deductions – Finance Law 2026 raised these from MAD 500 to MAD 600 per dependent per year (spouse + up to 6 children, total cap MAD 3,600/year).
This is also why two people with the same gross salary can owe different IR: deductions and dependents change the taxable base. Our gross vs net salary guide breaks down the full payslip chain.
Worked example: MAD 12,000/month gross
Using the 2026 scale and standard deductions:
Monthly gross MAD 12,000
− CNSS (4.48%) − 537.60
− AMO (2.26%) − 271.20
= Base before allowance 11,191.20
− 20% allowance (cap 2,500) − 2,238.24
= Net taxable income 8,952.96
Applying the annual brackets divided by 12, the gross monthly IR is roughly MAD 1,211, reduced to about MAD 1,161 with one spouse deduction. The step-by-step bracket walk is in the 2026 brackets article.
How IR is withheld and paid
- Each month, your employer estimates your annual IR and withholds a twelfth.
- In February of the following year, the employer files the annexe de régularisation and reconciles over- or under-withholding.
- Self-employed individuals declare and pay IR themselves, usually as part of their professional regime (CPU or réel).
Common mistakes
- Confusing marginal and average rate – your marginal rate is the rate on the top band only; your average rate is lower.
- Forgetting the 20% allowance – it is automatic but capped at MAD 30,000.
- Ignoring dependents – they directly reduce net taxable income.
- Mixing up CNSS/AMO with IR – social contributions are deducted before IR is computed; they are not IR themselves.
FAQ
Is IR calculated on gross or net salary?
Neither directly. It is calculated on net taxable income – gross salary minus CNSS, AMO, the 20% professional-expense allowance, and dependent deductions.
What is the top income tax rate in Morocco for 2026?
37%, applied to the portion of annual net taxable income above MAD 180,000. The 2026 Finance Law lowered it from 38%.
Do auto-entrepreneurs pay IR?
Auto-entrepreneurs pay the Contribution Professionnelle Unique (CPU), a simplified tax that replaces IR for eligible micro-activity. See our auto-entrepreneur CPU guide.
Are pensions taxed?
Pensions are subject to IR but many benefit from a partial or full exemption under the 2026 rules – see our pension IR exemption article.
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 informational only and reflects the 2026 scale. It does not constitute tax or legal advice. Confirm your personal situation with a certified accountant or the DGI.
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.
