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ComorosHow is income tax on salaries worked out in Morocco?
The starting point is gross taxable pay. A standard deduction for work expenses comes off first, then the employee's social security (CNSS) and compulsory health insurance (AMO) contributions. What is left is net taxable income.
The scale in Article 73 of the General Tax Code (CGI) then applies to this net income: the part up to 40,000 dirhams is tax free, then 10% from 40,001 to 60,000, 20% up to 80,000, 30% up to 100,000, 34% up to 180,000 and 37% on the rest. Each rate applies only to the part of income that falls in its band.
Example: pay of 10,000 dirhams a month (120,000 a year). Contributions are 3,225.60 + 2,712 dirhams, and work expenses at 25% are 30,000 dirhams, leaving net income of 84,062.40 dirhams. Annual tax is 7,218.72 dirhams, and net pay is about 8,904 dirhams a month.
What is the work expenses deduction and why does it matter so much?
The work expenses deduction is a flat allowance the law gives every employee, with no receipts needed. It is 35% of gross pay if annual pay is no more than 78,000 dirhams (6,500 dirhams a month), and 25% above that, with a ceiling of 35,000 dirhams a year.
It is worked out on gross pay itself, not pay after contributions, and does not include cash or in-kind benefits. Note that the switch from 35% to 25% applies to the whole salary, so someone just above 6,500 dirhams a month may find their deductions rose by more than the raise they expected.
Some professions have their own rates, such as journalists, insurance agents and pilots (45%) and fishing crews (40%).
How much do CNSS social security and AMO health insurance take?
The employee pays 4.48% to the CNSS: 3.96% for long-term benefits (retirement, disability and death) and 0.52% for short-term benefits. This rate applies only to pay up to a ceiling of 6,000 dirhams a month, so the deduction never goes above 268.80 dirhams a month.
Compulsory basic health insurance (AMO) takes 2.26% of full pay, with no ceiling.
The employer pays a larger share: about 8.98% for social security up to the ceiling, 6.4% for family allowances, 4.11% for health insurance and the solidarity contribution, and 1.6% for the vocational training levy. These amounts do not come out of your salary, but they are part of what you cost your employer.
What changed in 2026?
Finance Law No. 50-25 for 2026 did not change the income tax scale, so the scale set by the 2025 Finance Law stays: tax free up to 40,000 dirhams and a top rate of 37%.
The direct change for employees in 2026 is a higher family allowance deduction, up from 500 to 600 dirhams a year for each dependant, with an overall ceiling of 3,600 dirhams instead of 3,000. It benefits married people and those who support children.
The 2025 reform was the bigger one: it raised the tax-free band from 30,000 to 40,000 dirhams, widened the middle bands and cut the top rate from 38% to 37%.
Who is tax resident in Morocco, and how are foreigners treated?
You are tax resident in Morocco if your usual home or the centre of your economic interests is there, or if you stay there more than 183 days in any 365-day period. Residents are taxed on their total income, and non-residents only on income from Moroccan sources.
A foreign employee working in Morocco pays the same scale and the same contributions if they are registered with the CNSS. If they contribute only to a foreign pension fund, the law lets them deduct their contributions up to the rate their colleagues pay at the Moroccan employer.
Do employees have to file an annual return?
No, if your only income is a salary from one employer based in Morocco who withholds tax at source. In that case the monthly withholding is final.
You must file a return of total income before 1 March of the following year if you have more than one employer, other income not subject to a final withholding rate, or if you want to claim deductions such as family allowances or interest on a loan for your main home. Returns are filed online through the portal of the General Tax Directorate (DGI).
What about freelancers and the self-employed?
Professional income does not get the employees' flat work expenses deduction. It is assessed under the actual or simplified net profit regime, the single professional contribution regime for small professionals, or the auto-entrepreneur regime.
An auto-entrepreneur pays a small rate on turnover instead of the progressive scale, and files every three months. This calculator is for employees only and does not work out tax on self-employed income.
Practical tips for reading your payslip
Compare gross pay and net taxable pay on your payslip, and check that the 6,000 dirham ceiling is applied to your CNSS contribution if you earn more than that.
If you are married or support children, tell your employer so they apply the family deduction (600 dirhams a year per person, or 50 dirhams a month). If you are close to 6,500 dirhams a month, work out the effect of the change in the work expenses rate before negotiating a small raise.
What changed in 2026?
- The family allowance deduction rose to 600 MAD a year for each dependant, with a ceiling of 3,600 MAD (Article 74 of the General Tax Code as amended by Finance Law No. 50-25 for 2026).
- The income tax scale set by Finance Law No. 60-24 for 2025 stays unchanged: tax free up to 40,000 MAD and a top rate of 37%.
For expats
Moroccans living abroad in Spain, France, Belgium, the Netherlands and Italy pay tax on their salaries in their country of residence. Moroccan income tax applies to them only on Moroccan-source income, such as rent from property or dividends from Moroccan shares, as long as they are not tax resident in Morocco (fewer than 183 days and no usual home or centre of interests there). Money sent to family in Morocco is not income subject to income tax. Morocco has double tax treaties with a number of countries, listed on the General Tax Directorate's website. Anyone who moves back to Morocco becomes resident, and their Moroccan salary is taxed on the same scale.
Income tax rates
| Annual taxable income (MAD) | Rate |
|---|---|
| 0 to 40,000 | 0% |
| 40,000 to 60,000 | 10% |
| 60,000 to 80,000 | 20% |
| 80,000 to 100,000 | 30% |
| 100,000 to 180,000 | 34% |
| Over 180,000 | 37% |
The brackets are annual and apply to net taxable income, that is after deducting professional expenses and social security and health insurance contributions. Monthly equivalent: exempt up to 3,333 dirhams, then 10% up to 5,000, 20% up to 6,667, 30% up to 8,333, 34% up to 15,000 and 37% above that.
Other taxes that matter in Morocco
Capital gains
Gains on selling shares listed on the stock exchange are taxed at 15%, and gains on unlisted shares and bonds at 20%. Gains are exempt if total sales in the year do not exceed 30,000 dirhams. Gains on property are taxed at 20% of the net gain, with a minimum of 3% of the sale price even when there is no gain. Selling a main home lived in for at least 5 years is exempt, with a minimum of 3% on the part of the sale price above 4,000,000 dirhams.
Dividends
Tax is withheld at source on dividends from Moroccan companies at 11.25% on amounts paid from 1 January 2026, falling to 10% from 1 January 2027 under the transitional provisions of Article 247 of the General Tax Code. Investment income from foreign sources is taxed at 15%.
Crypto
Since its statement of 20 November 2017, the Exchange Office (Office des Changes) has treated transactions in virtual currencies as a breach of exchange regulations that can be penalised. Draft Law 42.25 on crypto-assets, prepared by the Ministry of Economy and Finance with Bank Al-Maghrib and the Moroccan Capital Market Authority (AMMC), was still under review and had not been adopted as of July 2026. There is no specific tax rule for crypto gains.
Inheritance
There is no inheritance tax in Morocco, but registration duty of 1% is due on the inventory of the estate after death (on gross assets, excluding the deceased's main home and its furniture) and on the handing over of bequests. Gifts between parents and children, spouses and siblings are subject to registration duty of 1.5%. For Muslims, the estate is divided under Islamic inheritance rules in the Family Code.
Property and wealth
There is no wealth tax. The annual taxes on property are the housing tax (taxe d'habitation), the municipal services tax (taxe de services communaux) and the tax on undeveloped urban land. These are local taxes governed by Law 47.06 as amended by Law 14.25 of 2025, and the General Tax Directorate now runs the housing tax and the municipal services tax. The housing tax is progressive up to 30% of the rental value, with a 75% reduction for a main home; these rates come from a secondary summary and we could not confirm them from the official text.
Tax residency
You have your tax home in Morocco if you have a permanent home there, or the centre of your economic interests is there, or you stay there more than 183 days, in one stretch or in total, in any 365-day period (Article 23 of the General Tax Code). Residents are taxed on income from Moroccan and foreign sources, and non-residents only on Moroccan income. The General Tax Directorate issues tax residency certificates on request, mainly for use under double tax treaties.
Retirement and pensions
From 2026, pensions from Morocco's basic pension schemes are fully exempt from income tax. Foreign-source pensions get a flat 70% deduction up to 168,000 dirhams a year and 40% above that, then an 80% reduction in the tax due on amounts transferred permanently into non-convertible dirhams (Articles 60 and 76). There is no special retirement visa.
Cost to the employer
The employer pays about 21.09% of pay: 7.93% for long-term benefits and 1.05% for short-term benefits (on pay up to 6,000 dirhams a month), 6.4% for family allowances, 4.11% for AMO compulsory health insurance (2.26% employer share and 1.85% solidarity contribution) and 1.6% vocational training levy. The last three apply to full pay with no ceiling. The CNSS rates are confirmed from an official source; the AMO split and the vocational training levy come from a secondary summary.
Social insurance
| Contribution | Employee | Employer | Applies to | Cap |
|---|---|---|---|---|
| Social security: long-term benefits (pension, disability and death) | 4% | 7.9% | Private-sector employees registered with the CNSS | On pay up to 6,000 dirhams a month |
| Social security: short-term benefits (sickness and maternity) | 0.5% | 1.1% | Private-sector employees registered with the CNSS | On pay up to 6,000 dirhams a month |
| Compulsory basic health insurance (AMO) | 2.3% | 4.1% | Private-sector employees | No cap (employer share 2.26% + 1.85% solidarity contribution) |
| Family allowances | 0% | 6.4% | Paid by the employer only | On actual pay, no cap |
| Vocational training tax (TFP) | 0% | 1.6% | Paid by the employer only | No cap |
Work out your own pay in Morocco
Instant result, monthly and yearly, with every deduction itemised.
Common questions about taxes in Morocco
How do I work out income tax in Morocco in 2026?
From gross pay, deduct work expenses (35% if annual pay is up to 78,000 MAD and 25% above that, capped at 35,000 MAD), CNSS contributions (4.48% on pay up to 6,000 MAD a month) and AMO (2.26%). Then apply the scale: tax free up to 40,000 MAD, then 10%, 20%, 30% and 34%, and 37% above 180,000 MAD.
What is the tax-free threshold for income tax in Morocco?
The first band, up to 40,000 MAD a year of net taxable income, is tax free. Thanks to the work expenses deduction and contributions, in practice an employee pays no tax on gross pay up to about 5,720 MAD a month.
How much is left from a 10,000 dirham salary in Morocco?
For a single person with no dependants, about 8,904 MAD a month is left. About 269 MAD goes to CNSS, 226 MAD to AMO and about 602 MAD to income tax.
How much comes off a 5,000 dirham salary?
There is no income tax at this level. Only 224 MAD goes to CNSS and 113 MAD to AMO, leaving 4,663 MAD a month net.
Did the income tax scale change in 2026?
No. The 2026 Finance Law kept the 2025 scale. The only direct change for employees is a higher family deduction of 600 MAD per dependant, up to 3,600 MAD a year.
What is the CNSS deduction rate on salary?
4.48% on pay up to 6,000 MAD a month, so at most 268.80 MAD a month. On top of that, 2.26% goes to AMO compulsory health insurance, on full pay with no ceiling.
What is the work expenses rate in Morocco?
35% of gross pay if it is no more than 78,000 MAD a year and 25% above that, with the deduction never more than 35,000 MAD a year. Some professions, such as journalists and pilots, have higher rates.
Do Moroccans living abroad pay tax in Morocco on their foreign salaries?
No, as long as they are not tax resident in Morocco. A non-resident pays Moroccan tax only on Moroccan-source income, such as rent from property in Morocco. A salary in France, Spain or Belgium is taxed in the country of work.
Do I have to file an annual income tax return?
If you are paid by one employer who withholds tax at source, you do not need to file. You must file before 1 March if you have several employers or other income, or want to claim deductions.
What is the VAT rate in Morocco?
The standard rate is 20%, with a reduced 10% rate on activities such as hotels, restaurants and some goods. It does not come off your salary; you pay it in the prices of what you buy.
Sources
- General Tax Code, 2026 edition (DGI): article 73-I (income tax scale, Finance Law 60-24 for 2025) Official source · checked 2 October 2026
- General Tax Code 2026: article 59 (professional expenses 35% / 25% with a 35,000 dirham cap, and deduction of social contributions) Official source · checked 2 October 2026
- General Tax Code 2026: article 74 (600 dirhams per dependant, up to 3,600 dirhams, Finance Law 50-25 for 2026), article 19 (corporate tax 20%) and article 99 (VAT 20% and 10%) Official source · checked 2 October 2026
- Insurance and Social Welfare Supervisory Authority (ACAPS): CNSS summary sheet, contribution rates and the 6,000 dirham ceiling Official source · checked 2 October 2026
- Employee AMO rate 2.26% and employer rates (1.85% and 1.6%): secondary check (Upsilon Consulting, humantal.ma) because cnss.ma could not be reached Secondary source used to cross-check · checked 2 October 2026
- Bank Al-Maghrib: reference exchange rate Official source · checked 2 October 2026