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Morocco IR Calculator 2026

2026 revised IR scale: new exempt bracket up to 40,000 MAD. Calculate your tax in seconds.

Moroccan income tax (IR) is calculated using a 6-bracket progressive scale, revised by the 2026 Finance Law. It applies to annual net taxable income (after social contributions and professional expense allowance). Our calculator displays marginal rate (highest bracket reached) and effective rate (total IR on gross income), both useful for comparing tax burden.

Your income

For an employee: gross − employee CNSS − 35% allowance. For self-employed: taxable profit.

360 MAD IR reduction per person, capped at 6.

Your IR calculation

Gross IR per scale

18,800 MAD

Net IR due

18,800 MAD

Effective rate

15.67 %

Marginal rate

34.00 %

Calculation based on 2026 Finance Law. Results are indicative and do not constitute tax advice.

2026 IR scale (annual)

FromToRateDeduction
0 MAD40,000 MAD0 %0 MAD
40,001 MAD60,000 MAD10 %4,000 MAD
60,001 MAD80,000 MAD20 %10,000 MAD
80,001 MAD100,000 MAD30 %18,000 MAD
100,001 MAD180,000 MAD34 %22,000 MAD
180,001 MADNo limit37 %27,400 MAD

Reduce your IR with a PER or life insurance

Paying more than 5,000 MAD in IR per year? A Moroccan PER (Retirement Savings Plan) and life insurance let you deduct contributions or exempt gains after 8 years.

PER savings (7,200 MAD)

2,448 MAD

/ year of IR avoided

Life insurance savings (50,000 MAD/an)

3,400 MAD

/ year of IR avoided (8 ans)

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Frequently asked questions

What are the new 2026 IR brackets?
The 2026 Finance Law raised the exempt bracket to 40,000 MAD (from 30,000 previously), then: 10% up to 60,000, 20% up to 80,000, 30% up to 100,000, 34% up to 180,000, and 37% beyond.
How to calculate net taxable income?
For an employee: annual gross − employee CNSS contributions − 35% professional expense allowance (capped at 35,000 MAD). For self-employed: annual profit (real regime) or flat CPU base (CPU regime).
What's the difference between marginal and effective rate?
The marginal rate is your last bracket's rate (e.g., 34% if income reaches the 5th bracket). The effective rate is total IR divided by income: always lower than marginal thanks to progressivity.
Are retirement pensions taxed the same way?
No. Pensions benefit from a specific allowance (60% to 80% depending on case — 80% for pensions transferred from abroad to an MA account), substantially reducing the due IR.

How does this calculator determine your income tax?

Moroccan income tax (IR) applies to annual net taxable income through a 6-bracket progressive scale in force for 2026: 0% up to MAD 40,000, 10% from 40,001 to 60,000, 20% from 60,001 to 80,000, 30% from 80,001 to 100,000, 34% from 100,001 to 180,000 and 37% beyond MAD 180,000. The calculator uses the tax authority's quick-calculation method: income × the rate of the bracket reached, minus a fixed deduction sum (0, 4,000, 10,000, 18,000, 22,000 or 27,400 MAD depending on the bracket).

Two inputs are enough: your net taxable income (for an employee: annual gross minus CNSS contributions, minus the 35% professional expense allowance capped at MAD 35,000/year) and the number of dependents (a 360 MAD tax reduction per person, capped at 6, i.e. MAD 2,160 maximum). Example: on MAD 120,000 of net taxable income with no dependents, IR comes to 120,000 × 34% − 22,000 = MAD 18,800/year — a 34% marginal rate and a 15.7% effective rate.

Above MAD 5,000 of annual IR, the tool also quantifies two tax-saving levers: a PER retirement plan (assumption: a contribution of 6% of income, capped at MAD 30,000, multiplied by your marginal rate) and life insurance (gains exempt after 8 years of holding, based on MAD 50,000/year invested at a 5% return). Results are indicative and do not constitute tax advice.

Income tax calculation FAQ

How much income tax do you pay on MAD 120,000 per year in Morocco?

On MAD 120,000 of net taxable income in 2026, annual IR is MAD 18,800 (120,000 × 34% − 22,000 deduction sum), about MAD 1,567 per month. The marginal rate is 34%, but the effective rate is only 15.7% thanks to progressivity. Each dependent then reduces the tax by MAD 360 per year.

What is the deduction sum for in the IR calculation?

It avoids slicing income bracket by bracket: the whole income is multiplied by its bracket's rate, then a fixed sum is subtracted — MAD 4,000 in the 10% bracket, 10,000 at 20%, 18,000 at 30%, 22,000 at 34% and 27,400 at 37%. Example: MAD 70,000 of net taxable income gives 70,000 × 20% − 10,000 = MAD 4,000 of IR.

From what salary do you start paying IR in Morocco in 2026?

The 2026 scale fully exempts the first MAD 40,000 of annual net taxable income. For an employee, after CNSS contributions (about 6.9% of gross) and the 35% professional expense allowance, that corresponds to a gross salary of roughly MAD 5,500 per month: below that level, no IR is withheld at source.

What is the IR reduction for dependents?

The family charge reduction is MAD 360 per year per dependent (spouse and children), capped at 6 people, i.e. MAD 2,160 maximum. It is deducted from the tax computed with the scale — not from taxable income — and can bring the tax down to zero, never below.

How can you legally reduce your income tax in Morocco?

Two main levers, quantified by the tool: a PER retirement plan with deductible contributions (tool assumption: 6% of income capped at MAD 30,000 — i.e. MAD 2,448 saved per year on MAD 120,000 of income in the 34% bracket), and life insurance, whose gains are IR-exempt after 8 years of holding. On top comes the family charge reduction, up to MAD 2,160 per year.

Scale and assumptions verified on August 19, 2026 — Wafir.ma

Wafir.ma is an independent comparison service — neither an ACAPS-licensed insurance broker nor a credit institution licensed by Bank Al-Maghrib. Displayed rates are indicative only.