You're about to hire a developer in Casablanca, or you've just landed a remote contract and a Moroccan payslip is on its way. Either way, one line decides how much of the gross salary reaches the bank account: income tax. The Morocco income tax (IR) scale for 2026 is progressive, and it's easier to read than it looks. Here's how it works, bracket by bracket, with full calculations you can repeat.
Morocco's 2026 IR scale has six brackets: 0% up to MAD 40,000 of annual net taxable income, then 10%, 20%, 30%, 34%, and finally 37% above MAD 180,000. Tax is calculated by applying the bracket rate to the income, then subtracting a fixed amount specific to that bracket.
What are the 2026 IR brackets in Morocco?
The scale applies to annual net taxable income. That means gross salary after social contributions and the flat professional expenses allowance, never the gross figure itself. For employees, the tax authority uses the "amount to deduct" method: multiply income by the bracket rate, then subtract a fixed sum that reproduces the bracket-by-bracket calculation.
| Annual net taxable income (MAD) | Rate | Amount to deduct (MAD) |
|---|---|---|
| 0 to 40,000 | 0% | 0 |
| 40,001 to 60,000 | 10% | 4,000 |
| 60,001 to 80,000 | 20% | 10,000 |
| 80,001 to 100,000 | 30% | 18,000 |
| 100,001 to 180,000 | 34% | 22,000 |
| Over 180,000 | 37% | 27,400 |
On a payslip the calculation is monthly, with every threshold divided by twelve: 0% up to MAD 3,333.33, 10% up to 5,000, 20% up to 6,666.67, 30% up to 8,333.33, 34% up to 15,000 and 37% above. The monthly deductions are the annual ones divided by twelve.
These figures follow the General Tax Code as published by the Moroccan tax authority (tax.gov.ma) and several consistent payroll guides. The MAD 40,000 exemption threshold and the 37% top rate come from the recent income tax reform and were still applied in 2026 according to the sources checked. Before any binding decision, confirm them on tax.gov.ma.
Citation capsule: according to the Moroccan tax authority (DGI), employment income tax is calculated on annual net taxable income through a progressive scale of six brackets running from 0% to 37% (tax.gov.ma, General Tax Code, article 73).
How do you calculate an employee's IR, step by step?
Start with gross taxable salary. Remove the employee social contributions (CNSS, AMO, and supplementary pension if any), then the flat professional expenses allowance. What's left is net taxable income. Apply the scale, then subtract the family charges reduction. The result is withheld every month by the employer.
The contributions are simple enough. CNSS takes 4.48% of salary, capped at MAD 6,000 per month (so MAD 268.80 at most), and AMO takes 2.26% of gross with no cap. For a line-by-line walk from gross to net, our guide to gross to net salary in Morocco covers each deduction.
The professional expenses allowance works in two steps. Up to MAD 78,000 of annual gross taxable pay, the allowance is 35%. Above that, it drops to 25%, capped at MAD 35,000 a year (about MAD 2,916.67 a month). And there's a threshold quirk that people often miss: at MAD 6,500 gross a month the allowance is MAD 2,275, but at MAD 6,501 it falls to roughly MAD 1,625. It barely moves the final tax, yet the net pay can look odd around that line.
Finally, the family charges reduction is MAD 600 per dependant per year (MAD 50 a month), for up to six dependants (MAD 3,600 a year). It comes off the calculated tax, not off taxable income.
Worked example: MAD 10,000 gross, married, 3 dependants
An employee at a marketing agency in Casablanca earns MAD 10,000 gross per month. She's married with two children, so three dependants.
| Step | Calculation | Monthly amount (MAD) |
|---|---|---|
| CNSS | 4.48% of 6,000 | 268.80 |
| AMO | 2.26% of 10,000 | 226.00 |
| Professional expenses | 25% of 10,000, under the cap | 2,500.00 |
| Net taxable income | 10,000 minus 268.80, 226 and 2,500 | 7,005.20 |
| Gross IR | 7,005.20 x 30% minus 1,500 | 601.56 |
| Family reduction | 3 x 50 | 150.00 |
| IR payable | 601.56 minus 150 | 451.56 |
| Net after CNSS, AMO and IR | 10,000 minus 268.80, 226 and 451.56 | 9,053.64 |
The effective IR rate is about 4.5% of gross. The marginal rate is 30%: each extra dirham of net taxable income is taxed at that level while she stays in the bracket.
And at MAD 20,000 gross, single?
Same method. CNSS stays at MAD 268.80, AMO rises to MAD 452, and the expenses allowance hits its monthly cap of MAD 2,916.67. Monthly net taxable income comes to MAD 16,362.53, about MAD 196,350 a year. That lands in the 37% bracket.
Annual IR is 196,350 x 37% minus 27,400, roughly MAD 45,250, or MAD 3,770.80 a month. Net pay after CNSS, AMO and IR is about MAD 15,508. The effective rate is 18.9% of gross, far below the headline 37%. That's progressivity at work: only the slice above MAD 180,000 is taxed at 37%.
What about a modest salary, around MAD 6,000 gross?
Plenty of junior hires sit here. At MAD 6,000 gross a month with no dependants, CNSS takes MAD 268.80 and AMO MAD 135.60. The allowance is 35%, or MAD 2,100. Monthly net taxable income falls to MAD 3,495.60, just above the monthly exemption line of MAD 3,333.33. IR is only MAD 16.23 a month, and net pay is about MAD 5,579.
In other words, the current scale protects small and middle salaries. The 0% bracket covers a large share of income, and the high rates only bite on comfortable pay.
Who pays IR: employees, self-employed, umbrella contractors?
The progressive scale applies to employees, which includes freelancers placed on an employment contract through an umbrella company or an Employer of Record. A registered self-employed person (auto-entrepreneur) is under a different regime, with a flat final tax on turnover, so the brackets don't apply. Our article on self-employed tax in Morocco details those rates, VAT and the professional tax.
For anyone comparing the two routes, the useful question isn't "which rate?" but "what do I keep, for the same billing?". WEEPO's wage portage simulator includes IR, CNSS and management fees, and the article on umbrella company take-home pay in Morocco shows real cases.
Which deductions can lower your IR?
Beyond the flat allowance and family charges, a few mechanisms shrink the taxable base. Contributions to a supplementary pension such as CIMR are deductible within limits set by the General Tax Code. Some allowances (transport, meals, representation) are exempt up to precise ceilings, and anything above is added to taxable income.
Each mechanism has its own conditions, ceilings and paperwork. If your situation is unusual (rental income, several employers, income from abroad), an accountant or your local tax office can tell you the rule that fits your file.
Where does IR appear on the payslip?
IR sits at the bottom of the deductions section, after CNSS, AMO and any CIMR. Check three things. Net taxable income should be consistent with your gross, the bracket applied should match your income level, and your dependants should be declared to the employer. Missing a dependant costs MAD 600 of tax a year per person. Our guide to the payslip in Morocco shows how to read the document line by line.
What foreign employers should take from the scale
If you're a company abroad paying a Moroccan hire through an Employer of Record, you don't calculate IR yourself: the EOR withholds it, files it and pays it over, then invoices you the total employment cost. Still, understanding the scale helps you set a salary offer that makes sense. A candidate asking for a net figure needs a gross that covers CNSS, AMO and IR, and the gap between the two grows quickly once pay crosses roughly MAD 15,000 a month, where the 34% and 37% brackets start to apply to the top slice.
A practical habit: when you negotiate, quote gross and net side by side, using the same worked method as above. It avoids the classic misunderstanding where a developer expects a net amount and the contract states a gross one.
What the scale means for your choice of status
A MAD 15,000 gross salary and MAD 15,000 of monthly turnover aren't comparable. The employee bears CNSS, AMO and progressive IR, but gets a contract, paid leave and full social cover. The self-employed person pays a lighter-looking flat tax, but carries their own protection and a turnover ceiling.
Our advice: run the numbers on your real annual turnover, not one isolated month. And remember that the scale can change with every finance law, so reread the brackets each January.