The reform will gradually reshape Morocco’s income tax brackets, replacing the current system with a simpler structure while reducing the tax burden on employees. Once fully implemented, the number of brackets will fall from six to three, with the top marginal rate capped at 30%.
How income tax brackets will change each year through 2030
The draft 2027 Finance Bill provides for annual adjustments to income thresholds and tax rates. The 60,000-dirham tax-free threshold will remain unchanged throughout the period covered by the schedules below, while the intermediate brackets and top rate will be adjusted in stages.
In 2027, annual income of up to 60,000 dirhams will be exempt from tax. Income between 60,001 and 80,000 dirhams will be taxed at 10%, rising to 20% for the portion between 80,001 and 100,000 dirhams and 34% for the portion between 100,001 and 180,000 dirhams. Income above 180,000 dirhams will remain subject to the top rate of 37%.
January 1–December 31, 2027
| Annual income bracket (MAD) | Income tax rate |
|---|---|
| 0–60,000 | 0% |
| 60,001–80,000 | 10% |
| 80,001–100,000 | 20% |
| 100,001–180,000 | 34% |
| Above 180,000 | 37% |
In 2028, the tax-free threshold will remain at 60,000 dirhams. The 10% rate will apply to income between 60,001 and 100,000 dirhams, while the portion between 100,001 and 200,000 dirhams will be taxed at 25%. Income above 200,000 dirhams will continue to attract the top rate of 37%.
January 1–December 31, 2028
| Annual income bracket (MAD) | Income tax rate |
|---|---|
| 0–60,000 | 0% |
| 60,001–100,000 | 10% |
| 100,001–200,000 | 25% |
| Above 200,000 | 37% |
In 2029, the 10% rate will apply to income between 60,001 and 130,000 dirhams, followed by a 20% rate on the portion between 130,001 and 200,000 dirhams. The top marginal rate will fall to 35% on income exceeding 200,000 dirhams.
January 1–December 31, 2029
| Annual income bracket (MAD) | Income tax rate |
|---|---|
| 0–60,000 | 0% |
| 60,001–130,000 | 10% |
| 130,001–200,000 | 20% |
| Above 200,000 | 35% |
In 2030, income between 60,001 and 150,000 dirhams will be taxed at 10%, while the portion between 150,001 and 200,000 dirhams will attract a 20% rate. The top marginal rate will fall to 30% on income exceeding 200,000 dirhams.
January 1–December 31, 2030
| Annual income bracket (MAD) | Income tax rate |
|---|---|
| 0–60,000 | 0% |
| 60,001–150,000 | 10% |
| 150,001–200,000 | 20% |
| Above 200,000 | 30% |
These are progressive tax rates. Each rate applies only to the portion of annual income falling within the relevant bracket, not to the taxpayer’s entire income.
Outlining the reform, Fouzi Lekjaa, Minister of Economy, Finance and Public Sector Performance, highlighted the planned income tax exemption for employees earning less than 10,000 dirhams a month. He also said 87% of employees are expected to be exempt from income tax.
The tax relief rests on two measures working together. The first is an increase in the annual tax-free income threshold from 40,000 to 60,000 dirhams, effective January 1, 2027. The second is an increase in the standard deduction for professional expenses from 25% to 45%.
Read also : Morocco to scrap income tax on monthly net salaries below MAD 10,000, Lekjaa confirms
Raising the tax-free threshold alone would therefore not be enough to deliver the promised exemption for monthly salaries below 10,000 dirhams. It is the combined effect of the higher threshold and the increased professional-expense deduction that is expected to make those salaries tax-free from January 2027.
Beyond this immediate relief, the timetable laid out in the draft 2027 Finance Bill points to a gradual reduction in the tax burden on salaried income, with the top marginal rate reaching 30% in 2030—a year ahead of the government’s stated 2031 deadline.
