How to calculate Communal Services Tax (TSC) in Morocco in 2026

1. Determine the cadastral rental value (VL)

VL is the theoretical annual rent the property would generate if rented. It's set by the communal census commission from cadastral grids (revised every 5 years, last revision 2024).

Example: 90 m² apartment in Casablanca Maarif → VL ≈ MAD 72,000/year (MAD 6,000/month × 12). To verify your VL, check your previous tax notice or request a duplicate from the tax office.

2. Identify urban or peripheral zone

URBAN zone (10.5% rate): urban perimeters defined by wali decree. Covers city centers and structured neighborhoods of major agglomerations (Casablanca, Rabat, Marrakech, Fez, Tangier, Agadir, Meknès, Oujda, Kenitra, Tetouan).

PERIPHERAL zone (6.5% rate): douars, rural communes, subdivisions being urbanized outside the perimeter. Check zoning on your tax notice or with your commune.

3. Apply the rate to total VL

Important: unlike TH, TSC does NOT benefit from the 75% primary-residence abatement. Calculation applies on TOTAL VL.

Formula: TSC = VL × 10.5% (urban zone) or VL × 6.5% (peripheral zone). For our Casablanca example: 72,000 × 10.5% = MAD 7,560/year TSC alone.

4. Check specific TSC exemptions

Daam Sakane social programs (MAD 250,000 housing, FVI MAD 140,000) benefit from 7-year total TSC exemption. Public buildings, embassies and certain classified industrial facilities are also exempt (Law 47-06 art. 41).

First-time buyers of new housing ≤ MAD 700,000 benefit from TSC + TH exemption for 5 years (combined).

Casablanca, Rabat, Marrakech (premium urban)

Average VL MAD 60,000-80,000/year → TSC = MAD 6,300-8,400/year. Add TH (25% base with primary-residence abatement) = ~MAD 900. Total TH + TSC bill = ~MAD 7,200-9,300/year. Most expensive zone in Morocco.

Tangier, Fez, Agadir (standard urban)

Average VL MAD 36,000-54,000/year → TSC = MAD 3,780-5,670/year. TH primary residence ~MAD 450-700. Total ~MAD 4,230-6,370/year.

Meknès, Kenitra, Tetouan, Oujda (regional urban)

Average VL MAD 24,000-36,000/year → TSC = MAD 2,520-3,780/year. TH primary residence ~MAD 300-450. Total ~MAD 2,820-4,230/year.

Peripheral zones and rural communes

Average VL MAD 12,000-24,000/year → TSC = MAD 780-1,560/year (6.5% rate). TH ~MAD 150-300. Total ~MAD 930-1,860/year. Strongly preferable zones for MRE and rental investors.

Comparison table

TH: progressive 10-30% rate based on VL bracket, 75% primary-residence abatement → effective ~MAD 250-2,500/year for primary residence.

TSC: flat 10.5% (urban) or 6.5% (peripheral) rate, NO primary-residence abatement → TSC is generally 3-10 times higher than TH.

Conclusion: TSC represents 80-90% of your annual property tax bill, this is the element to monitor in priority when buying.

Why TSC is more expensive than TH

Historically, TSC was designed to finance municipal public services regardless of occupancy status. TH benefits from social advantages (primary residence) because it taxes housing per se.

For a rental investor, the absence of primary-residence abatement on TSC partially compensates for the tax advantage on rental income.