Income tax on salary
Income tax is withheld monthly from gross salary by employer. 2026 scale revised with exempt bracket raised to 40,000 MAD annually and marginal rate capped at 37% beyond 180,000 MAD.
Who is concerned
All salaried employees receiving wages in Morocco, including interns compensated over 6,000 MAD/month and civil servants.
Deadlines
Monthly withholding at source by employer. Annual IR declaration (form 9421) before February 28 of following year if multiple incomes or tax credits.
How it works
Employer calculates net taxable salary (gross − CNSS, AMO, CIMR contributions, 20% professional expenses), applies IR scale, deducts the family-charge reduction (600 MAD per dependant, capped at 3,600 MAD/year), then withholds IR. Annual cumulation is regularized via declaration 9421 if employee has other income.
2026 rates and scales
2026 scale: 0 to 40,000 MAD: 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%. Professional expense allowance (tax code art. 59-I-A, as amended by the 2023 Finance Act): 35% of gross taxable income up to 78,000 MAD, 25% above, capped at 35,000 MAD/year. Family-charge reduction: 600 MAD per dependant, capped at 3,600 MAD/year.
And in 2027?
These amounts stay in force until the 2027 Finance Act is published in the Official Bulletin. The bill is tabled in Parliament by October 20, 2026 at the latest.
Follow the 2027 Finance ActConcrete example
The order of calculation is the same for everyone: start from gross taxable salary, deduct the social contributions withheld on the payslip, then the professional expense allowance (35% up to 78,000 MAD of gross taxable income, 25% above, capped at 35,000 MAD). Apply the scale to net taxable income, then subtract the family-charge reduction of 600 MAD per dependant, capped at 3,600 MAD. Because contributions depend on CNSS ceilings and on the cover taken out, the result is case by case: our net-salary calculator works it out from your payslip.
Exemptions
Exempt bonuses and allowances (within limits): transport allowance (500 MAD/month in big cities), meal allowance (20 MAD/day), seniority bonus (per formula), voluntary departure compensation. PER retirement contributions 100% deductible without cap.
Declarative obligations
Employer issues annual income certificate (form 9421) before February 28. Employee must file personal declaration if multiple employers, property income, or tax credits (PER, life insurance).
Penalties for non-compliance
15% surcharge for late declaration, 20% for ex-officio taxation. Late interest 5% first year, 0.5% per additional month. 100% penalty for proven fraud with possible criminal charges.
Legal optimization tips
- Subscribe to PER: 100% of deposits IR-deductible, without cap (vs 10% / 50,000 MAD for life insurance)
- Optimize family charges: declare student children up to 25 years
- Request IR overpayment refund when changing employer mid-year
- Negotiate fixed vs variable salary portion: bonuses are taxed even if non-recurring
Associated tools
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