Moroccan income tax is progressive: it does not apply in one block to everything you earn, but in successive brackets. That is the source of the most widespread misunderstanding on the subject, the one that makes people believe a pay rise can reduce their take-home pay.
It cannot. Moving into the next bracket taxes only the part of your income above the threshold at 34%, never the whole. Here is the applicable scale, the calculation method, and a complete example.
| Annual bracket | Rate | Amount to subtract |
|---|---|---|
| Up to MAD 40,000 | 0% | MAD 0 |
| MAD 40,001 to 60,000 | 10% | MAD 4,000 |
| MAD 60,001 to 80,000 | 20% | MAD 10,000 |
| MAD 80,001 to 100,000 | 30% | MAD 18,000 |
| MAD 100,001 to 180,000 | 34% | MAD 22,000 |
| Above MAD 180,000 | 37% | MAD 27,400 |
Source: General Tax Code, scale applicable in 2026.
The real method, in one line
You do not add up bracket by bracket. The administration uses a mathematically equivalent shortcut that is far quicker:
Tax = net taxable income × bracket rate − amount to subtract
The third column of the scale is therefore neither a favour nor an allowance: it is exactly what has to be taken off so that the one-step calculation gives the same result as adding up bracket by bracket. A net taxable income of MAD 90,000 falls in the 30% bracket, which gives MAD 27,000, less MAD 18,000, so MAD 9,000 of annual tax. The rate actually borne is 10%, not 30%.
Before the scale: from gross to net taxable
The scale never applies to gross salary. You first have to reach net taxable income, which means three subtractions, in this order.
Social contributions. CNSS takes 4.48% on a base capped at MAD 6,000 a month, so MAD 268.80 at most. AMO takes 2.26% with no cap. A supplementary pension scheme such as CIMR is also deductible, within the usual limit applied by the calculator.
The professional expenses allowance. This is a flat-rate allowance covering job-related costs, with no receipts to produce. It is 35% of annual gross while that stays at or below MAD 78,000, 25% above, and it is capped at MAD 35,000 a year whatever the pay.
Family allowances. These come in not here but at the end, as a reduction of the tax calculated: MAD 30 a month per dependant, for six dependants at most, so MAD 2,160 a year at best.
A full calculation, from gross to net
Take a single employee with no dependants, paid MAD 12,000 gross a month, so MAD 144,000 a year.
| Step | Calculation | Annual amount |
|---|---|---|
| Gross salary | 12,000 × 12 | MAD 144,000 |
| CNSS | 4.48% of 6,000, capped, × 12 | MAD 3,226 |
| AMO | 2.26% of 144,000 | MAD 3,254 |
| Professional expenses | 25% of 144,000, under the cap | MAD 35,000 |
| Net taxable income | 144,000 − 3,226 − 3,254 − 35,000 | MAD 102,520 |
| Gross tax | 102,520 × 34% − 22,000 | MAD 12,857 |
| Family allowances | None | MAD 0 |
| Tax due | MAD 12,857 | |
| Net pay | 144,000 − 3,226 − 3,254 − 12,857 | MAD 124,663 |
That is about MAD 10,389 net a month. Note the detail that matters: professional expenses at 25% would give MAD 36,000, but the MAD 35,000 cap applies. From MAD 140,000 of annual gross, that allowance stops growing, and every further dirham becomes fully taxable.
Amounts are rounded to the dirham. The salary calculator redoes this calculation with your own figures, in both directions, and takes CIMR and dependants into account.
The most persistent misconceptions
“A pay rise could leave me worse off.” No. Only the fraction of income above the threshold is taxed at the higher rate. Net pay always rises, simply more slowly.
“My tax rate is my bracket rate.” No. That is your marginal rate, the one hitting the last dirham earned. Your average rate, the one you actually bear, is markedly lower: 12.5% in the example above, for a 34% marginal bracket.
“Professional expenses have to be justified.” No, it is a flat-rate allowance, automatic and with no documents to supply.
“The scale applies to my gross salary.” No, and this is the error that most distorts back-of-the-envelope estimates. Between gross pay and the tax base there is close to 30% of difference on an average salary.
What this scale does not cover
It concerns employment income. Professional, rental, agricultural and investment income follow different rules for establishing the base, even where they later join the progressive scale. Some income is subject to a final withholding rate and does not enter it at all.
For a Moroccan living abroad, a question arises before the scale even applies: which country has the right to tax what. That is settled by double taxation treaties, whose principles are set out in the double taxation guide.
Frequently asked questions
Is the scale monthly or annual?
Annual. Each month the employer applies an equivalent monthly scale, obtained by dividing the thresholds by twelve, which gives the same result over the year. Year-end adjustments correct the differences caused by bonuses and changes in pay.
How are bonuses taxed?
They enter taxable income in the month they are paid, which can temporarily push you into a higher bracket and give the impression of an excessive deduction. The annual adjustment puts things right.
Do pensioners pay income tax on their pension?
Pensions are taxable, but they benefit from a specific allowance before the scale is applied, distinct from the professional expenses allowance for employees. The treatment also differs according to whether the pension is of Moroccan or foreign origin.
Where can I find the official text?
In the General Tax Code, in the article devoted to the income tax scale, as amended by the latest Finance Act. The Directorate General of Taxes publishes an explanatory circular each year on how it is applied.
Last updated: January 2026 · Indicative estimate - check with the relevant administration.