Morocco to scrap income tax on monthly net salaries below MAD 10,000, Lekjaa confirms

Finance Minister Faouzi Lekjaa

Moroccans earning less than 10,000 dirhams a month after deductions will be exempt from income tax under a sweeping reform announced by Economy and Finance Minister Fouzi Lekjaa on Friday, October 23, during the presentation of the 2027 draft budget to Parliament. The announcement confirms details first revealed by Le360 of an overhaul set to be phased in between 2027 and 2031.

On 23/10/2026 at 17h45

Lekjaa also confirmed plans to raise the annual tax-free net income threshold from 40,000 to 60,000 dirhams and simplify the income tax system by reducing the number of tax brackets from five to three. The new rates will be set at 10%, 20% and 30%, bringing the top marginal rate down from 37% to 30%.

As Le360 previously reported, Lekjaa said the changes would leave 87% of taxpayers exempt from income tax.

Most employees benefiting from the reform are expected to take home around 500 dirhams more each month in 2027. The measures are projected to cost the Treasury 5.5 billion dirhams.

By Wadie El Mouden
On 23/10/2026 at 17h45