Income tax on salary Morocco: 2026 IR scale and examples

Income tax on salary Morocco is calculated in 2026 with the IR (impôt sur le revenu, personal income tax) scale in force since 1 January 2025: 0% up to 40,000 DH of annual net taxable income (3,333.33 DH a month), then 10%, 20%, 30%, 34% and 37% above 180,000 DH. The 2026 Finance Law (law no. 50-25) left the scale unchanged; it raised the family relief to 600 DH a year per dependant. Below: the monthly and annual scale, deductions, exempt income, the method and three worked examples. Updated 4 November 2026.

Key points

• 2026 IR scale: six bands from 0% to 37%, identical to 2025.
• Professional expenses: 35% up to 78,000 DH of annual gross taxable salary, 25% above, capped at 35,000 DH a year.
• Family relief: 600 DH a year (50 DH a month) per dependant, capped at 3,600 DH a year since 1 January 2026.
• The employer withholds IR every month and pays it to the tax authority (DGI) through SIMPL-IR before the end of the following month.

The 2026 IR scale in Morocco: monthly and annual table

The legal scale for income tax on salary Morocco is annual (article 73 of the General Tax Code, CGI). Payroll divides the bands and the amounts to deduct by 12: gross IR = net taxable income × band rate − amount to deduct.

Until the end of 2024, the tax-free band stopped at 30,000 DH and the top rate was 38%: a tool still on that old scale overstates the tax.

What the 2026 Finance Law changed

For income tax on salary Morocco, the 2026 Finance Law keeps the 2025 scale. It raises the family relief from 500 to 600 DH per person per year (cap raised from 3,000 to 3,600 DH) for income earned from 1 January 2026, and exempts, under conditions, group pensions paid by the CIMR (the private-sector supplementary pension fund).

What makes up the taxable base

Start from gross taxable salary (SBI): base pay, overtime, bonuses and benefits, minus exempt items. Then deduct:

1. Employee social security contributions: CNSS 4.48% on pay capped at 6,000 DH a month and AMO 2.26% with no cap (rates as of 1 January 2024, unchanged in 2026). See our guides to CNSS contributions in Morocco and AMO health insurance in Morocco.
2. The employee share of a supplementary pension, for example the CIMR, if the company is a member.
3. Professional expenses, a flat allowance calculated on the SBI.

The result is net taxable income (RNI), to which the scale for income tax on salary Morocco applies, before family relief.

Professional expenses: 35% or 25%

The allowance is 35% when annual gross taxable salary does not exceed 78,000 DH (6,500 DH a month) and 25% above, capped at 35,000 DH a year, i.e. 2,916.67 DH a month (article 59-I CGI, rule from the 2023 Finance Law). It lowers the tax, not the salary paid.

Family relief

Since 1 January 2026, gross IR is reduced by 600 DH a year, i.e. 50 DH a month, for each dependant: spouse and dependent children within the meaning of article 74 CGI. It is capped at 3,600 DH a year, i.e. six people, and cannot make the tax negative.

Income exempt from income tax on salary Morocco

Article 57 CGI lists the amounts that escape income tax on salary Morocco. The most common in payroll:

Paid notice, untaken leave and performance bonuses remain taxable. The tax treatment of terminations is covered in our guide to severance pay in Morocco.

How to calculate income tax on salary Morocco in 5 steps

1. Work out the month’s SBI: gross pay minus exempt items.
2. Deduct CNSS (capped), AMO and the employee supplementary pension share.
3. Deduct professional expenses, calculated on SBI (35% or 25%, cap of 2,916.67 DH a month).
4. Apply the band matching the RNI: RNI × rate − amount to deduct.
5. Deduct 50 DH per dependant (300 DH at most): this is the net IR withheld on the payslip.

This gives the tax. To go from the tax to net pay, and from net back to gross, follow our full guide to net salary calculation in Morocco.

Three worked examples of income tax on salary Morocco

Illustrations with no exempt items and no supplementary pension, at rates in force on 4 November 2026.

Reading the three cases

Case 1: annual gross (72,000 DH) stays below 78,000 DH, hence the 35% allowance; RNI barely exceeds the tax-free band. Case 2: the allowance drops to 25% and family relief removes 150 DH. Case 3: professional expenses are capped and income tax on salary Morocco reaches about 22% of gross. On an annual basis, case 2 gives 7,218.72 DH of gross IR and 5,418.72 DH of net IR, the same result.

IR versus withholding at source: what is the difference?

IR is the tax itself, calculated on annual income under article 73. Withholding at source (retenue à la source) is how it is collected: the employer calculates income tax on salary Morocco on each payroll, withholds it and pays it to the Treasury (article 156 CGI). In practice:

• The employer files and pays the withheld IR electronically through SIMPL-IR, before the end of the month following payment of salaries (article 174 CGI). In June 2026 the DGI reminded employers that IR on May salaries was due before 1 July.
• At year end, it files the 9421 return summarising each employee’s pay and IR before 1 March: see our guide to the 9421 return in Morocco.
• Late payment exposes the employer to a 20% penalty plus a 5% surcharge for the first month, then 0.50% per additional month (articles 200 and 208 CGI).

An employee paid by a single employer established in Morocco, whose IR is fully withheld at source, is exempt from filing an annual return (article 86 CGI). With several employers or other income, an annual return may be due.

Getting income tax on salary Morocco right in your payroll

The costliest mistakes on income tax on salary Morocco: the old 38% scale, family relief left at 500 DH, professional expenses calculated after contributions, bonuses wrongly treated as exempt. Payroll software for Morocco applies the 2026 scale and article 57, then prepares SIMPL-IR and the 9421 return. To estimate a case, use our free payroll simulators, and find every Moroccan payroll rule in our payroll Morocco guide, as well as a line-by-line reading of a payslip in Morocco.

Frequently asked questions

What is the scale for income tax on salary Morocco in 2026?

0% up to 40,000 DH of annual net taxable income, 10% up to 60,000 DH, 20% up to 80,000 DH, 30% up to 100,000 DH, 34% up to 180,000 DH and 37% above. It is the 2025 scale, carried over into 2026.

From what salary do you pay IR in Morocco?

Once net taxable income exceeds 3,333.33 DH a month. With contributions and the 35% allowance, that is a gross salary of about 5,720 DH a month for a single employee with no exempt items.

How do you calculate monthly IR?

Monthly RNI × band rate − monthly amount to deduct, then minus 50 DH per dependant. Example: 7,005.20 × 30% − 1,500 = 601.56 DH.

How much relief per dependent child in 2026?

600 DH a year, i.e. 50 DH a month per dependant, up to six people (3,600 DH a year).

Are professional expenses capped?

Yes: 35,000 DH a year, i.e. 2,916.67 DH a month, reached at about 11,667 DH gross a month.

What is the difference between IR and withholding at source?

IR is the tax; withholding is how the employer collects it, deducting it from each salary and paying it to the DGI through SIMPL-IR.

Is overtime subject to income tax on salary Morocco?

Yes. Overtime is added to gross taxable pay and follows the normal scale.

Where is the official text of the scale?

In article 73 of the CGI published by the DGI. An up-to-date summary is published by PwC Worldwide Tax Summaries.

Key takeaways

• Income tax on salary Morocco in 2026 follows the 2025 scale: 0% up to 40,000 DH a year, 37% above 180,000 DH.
• Family relief: 600 DH per person per year since 2026, capped at 3,600 DH.
• The employer withholds and pays IR monthly via SIMPL-IR, then files the 9421 return before 1 March.
• For full net pay, use the net salary calculation guide.

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