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 family charges (360 MAD/child, max 6 children), 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%. Flat professional expense allowance: 20% of net salary, capped at 35,000 MAD/year.
Concrete example
Gross monthly salary: 15,000 MAD (180,000 MAD/year). After CNSS/AMO (8%) and 20% pro expenses: taxable net ≈ 110,400 MAD. Gross IR = 40,000×0 + 20,000×10% + 20,000×20% + 20,000×30% + 10,400×34% = 15,536 MAD/year. Family charges 2 children = −720 MAD. Net annual IR ≈ 14,816 MAD = 1,235 MAD/month.
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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