Morocco Income Tax 2026 — Brackets, Declaration & Calculation

1. Morocco IR scale 2026 — progressive rates by bracket

The 2026 IR scale remains the same as since Finance Law 2023 (low-bracket reform). 6 progressive brackets:

Net taxable income bracket	Marginal rate	Sum to deduct
0 to 30,000 MAD	0%	0 MAD
30,001 to 50,000 MAD	10%	3,000 MAD
50,001 to 60,000 MAD	20%	8,000 MAD
60,001 to 80,000 MAD	30%	14,000 MAD
80,001 to 180,000 MAD	34%	17,200 MAD
Above 180,000 MAD	38%	24,400 MAD

Concrete calculation example

Salaried at 12,000 MAD/month gross = 144,000 MAD/year. After CNSS (4.29%) and AMO (2.26%), taxable income ≈ 134,568 MAD. Bracket 34%. Gross IR = (134,568 × 34%) - 17,200 = 28,553 MAD/year, or 2,379 MAD/month withheld at source.

2. The 6 income categories subject to IR

1) Salaries & wages — dependent labor income: gross salaries + bonuses + allowances + benefits in kind. 20% flat allowance for professional expenses (capped at 30,000 MAD/year).

2) Professional income (self-employed, BIC) — industrial, commercial, craft + non-salaried liberal professions. Real net result regime (full accounting) or CPU regime (Unified Professional Contribution) for turnover ≤ 2M MAD.

3) Real estate income (rentals) — rents received from properties in Morocco. 40% flat charge allowance. IR scale on net taxable income.

4) Movable capital income — dividends: 15% flat tax. Interest: 20% flat. Capital gains: 20% with progressive allowance based on holding period.

5) Agricultural income — farms. Full exemption if turnover ≤ 5M MAD/year (flat regime). Beyond: real net result regime like BIC.

6) Real estate capital gains — sale of Morocco property. 2026 rates: 20% of net gain for primary residence held ≥ 8 years, 30% for holding < 4 years. Full exemption: primary residence held ≥ 6 years, first sale of social housing.

3. Deductible charges 2026 — legally reduce your IR

**Professional expenses**: 20% flat allowance (salaried), capped at 30,000 MAD/year.
**CNSS, AMO, CIMR contributions**: fully deductible from gross income.
**Mortgage interest** (primary residence): annual interest deduction, capped at 10% of taxable income.
**Life insurance & retirement premiums**: 10% of net taxable income, capped at 50,000 MAD/year if contract ≥ 8 years.
**Donations** to recognized public-utility works: 100% deductible up to 0.2% of income for individuals.
**Dependent**: 360 MAD/year per dependent child or ascendant (max 6 persons).

4. Penalties for late filing or omission

**Late declaration**: 15% surcharge on due amount, minimum 500 MAD. Beyond 6 months late: 25%.

**Late payment**: 10% late interest + 0.5% per additional month. Global cap: 100% of principal.

**Omission or understatement**: 15% to 100% surcharge depending on intent. Proven fraud: criminal prosecution possible (Law 105-12).

**Spontaneous regularization**: if you regularize before any DGI audit, surcharges are reduced by 50%.

5. Special case — MREs and tax treaties

Moroccan Residents Abroad (MREs) are **not subject to IR in Morocco** on foreign-source income, thanks to bilateral tax treaties (France, Spain, Belgium, Italy, Netherlands, Germany, UK, Canada, USA, UAE, etc.).

They remain subject to IR on: 1) Real estate income from properties rented in Morocco — declaration in March 2026, progressive rate without primary-residence allowance; 2) Moroccan real-estate capital gains — 20% of net gain; 3) Dividends from Moroccan companies — 15% flat.

Retiree MREs repatriating pensions to Morocco benefit from an 80% allowance on foreign pensions (Finance Law 2024), subject to definitive transfer via official banking channel.

6. Optimization — how to legally reduce IR in 2026

Subscribe to a **Retirement Savings Plan (PER)**: contributions deductible up to 10% of income + 50,000 MAD/year cap. Immediate savings of 17,000 MAD/year for an executive in 34% bracket.
**Primary-residence mortgage**: deductible interest, cap 10% of income.
**Life insurance ≥ 8 years**: contributions deductible 10% of income, cap 50,000 MAD/year.
**Declared dependents**: 360 MAD/year each, up to 6.
**Auto-entrepreneur status** if side activity: 0.5% to 1% flat on turnover much more advantageous than classical scale for income < 500,000 MAD.

7. FAQ

Q.What is the Morocco IR scale for 2026?

Progressive 6-bracket scale: 0% up to 30,000 MAD, 10% from 30,001-50,000, 20% from 50,001-60,000, 30% from 60,001-80,000, 34% from 80,001-180,000, 38% above 180,000. Sums to deduct: 0 / 3,000 / 8,000 / 14,000 / 17,200 / 24,400 MAD per bracket.

Q.Who must declare IR in Morocco in 2026?

All multi-employer salaried, self-employed (except auto-entrepreneurs and CPU), liberal professions, real-estate lessors (rents > 6,000 MAD/year), movable capital income holders > 30,000 MAD/year, taxpayers with real-estate capital gains. Single-employer salaried don't declare — IR withheld at source.

Q.How do I file IR online on tax.gov.ma?

Create your Taxpayer Space with your Tax ID (IF, 8 digits on your pay slip). Activate SIMPL-IR service. Form ADM010F is pre-filled for salaried with DGI-received data. Complete deductible charges, e-sign, pay online by CMI card or DGI transfer.

Q.What are the deductible charges from Morocco IR?

Social contributions (CNSS, AMO, CIMR), 20% flat professional-expense allowance (max 30,000 MAD/year for salaried), mortgage interest (max 10% of income), life insurance and PER premiums (max 10% + 50,000 MAD/year), recognized donations, alimony, 360 MAD per dependent (max 6).

Q.What is the Morocco IR filing deadline 2026?

April 30, 2026 for 2025 income. For real-estate income: separate declaration before March 31, 2026. Real-estate capital gains: declaration and payment within 30 days of the deed. Late penalty: 15% with minimum 500 MAD, doubled beyond 6 months.

Q.How is IR calculated on a 15,000 MAD/month salary?

Gross salary 15,000 MAD/month = 180,000 MAD/year. CNSS+AMO ≈ 11,790 MAD. Taxable income ≈ 168,210 MAD. Bracket 34%. IR = (168,210 × 34%) - 17,200 = 39,991 MAD/year, or ≈ 3,333 MAD/month withheld. Net salary after IR ≈ 11,100 MAD/month.

Q.Do MREs pay IR in Morocco?

No for foreign-source income thanks to bilateral tax treaties (France, Spain, Belgium, Netherlands, Italy, Germany, UK, Canada, USA, UAE). Yes for real-estate income from Morocco-rented properties, Moroccan real-estate capital gains, dividends from Moroccan companies. Repatriated foreign pensions benefit from 80% allowance.

Q.How do I legally reduce my Morocco IR?

1) Retirement Savings Plan (PER) — 10% income deduction + 50,000 MAD/year. 2) Primary-residence mortgage — interest deductible 10% of income. 3) Life insurance ≥ 8 years — 10% + 50,000 MAD deduction. 4) Declared dependents — 360 MAD/year each (max 6). 5) Auto-entrepreneur for side activity. 6) Recognized donations.

Q.Difference between IR and Unified Professional Contribution (CPU)?

IR is the general tax on all income. CPU is a simplified regime reserved for taxpayers with professional turnover ≤ 2M MAD: replaces IR + professional tax + social contributions with a flat per activity scale (3% to 10%). Auto-entrepreneurs (≤ 500,000 MAD): 0.5% to 1% flat.

Q.What to do if I forgot to declare last year?

Regularize spontaneously before any DGI audit: surcharges reduced by 50% (instead of 15% standard → 7.5%). Log into tax.gov.ma > SIMPL-IR > 'Late declaration' > select concerned year. If more than 4 years late, contact your communal receiver for installment plan.

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