Morocco’s 2027 income tax brackets: what the finance bill changes

Three measures directly affect income tax withheld from salaries, all for income earned from 1 January 2027.

1. A wider tax-free band: 60,000 DH of annual net taxable income instead of 40,000, i.e. 5,000 DH a month instead of about 3,333 (amended CGI articles 73-I and 247-XXXXVII).
2. Work expenses at 45% for all employees outside special regimes, still capped at 35,000 DH a year (article 59-I-A). The 35% rate below 78,000 DH and 25% above it disappear.
3. A transitional scale each year from 2027 to 2030, then a final three-rate scale in 2031: the top marginal rate falls from 37% to 30%.

The bill does not amend article 74: the family allowance stays at 600 DH per dependant per year. The reform is estimated to cost 5.5 billion dirhams in its first year, according to figures presented by the Minister of Economy and Finance and reported by the press.

Not all of them, going by the bill’s text: it contains no general exemption for salaries under 10,000 DH, and the tax-free band applies to net taxable income, not to net pay. The Minister of Economy and Finance announced that monthly salaries under 10,000 DH would be exempt and estimated that 87% of employees would no longer pay income tax; several analyses note that the tabled text contains no such provision.

With the 2027 scale and the 45% deduction, our calculations give zero income tax up to about 8,375 DH gross a month (about 7,917 DH net) for an employee with no dependants, no CIMR and no mutual insurance, against about 5,722 DH gross in 2026. At 10,000 DH gross, 158.85 DH of tax remains each month, which drops to zero with four dependants. If Parliament amends the text, these thresholds will change.

From 100,000 DH of annual net taxable income (8,333 DH a month), every lower band is crossed: the annual gain is the difference between the deduction amounts, 28,000 − 22,000 = 6,000 DH, i.e. 500 DH a month. Higher salaries then benefit from the 2028 to 2031 scales, which widen the 10% and 20% bands and lower the top rate: with the 2031 scale and the same contributions, monthly income tax would fall to 647.55 DH on 15,000 DH gross and to 1,522.51 DH on 20,000 DH gross.

The 45% deduction mostly helps low and middle salaries: the unchanged 35,000 DH annual cap is reached from 6,482 DH taxable gross a month, against 11,667 DH in 2026. Above 11,667 DH, the deduction does not change.

January 2027 payroll will need the new scale and the 45% deduction; one other measure would only come in 2031.

• Flat-rate allowances: from income earned in 2031, article 57-1° would remove the exemption for allowances paid permanently for the normal exercise of the job, which would be treated as salary supplements. Until 31 December 2030, the current rule still applies.
• Family allowance: 600 DH per dependant per year, six dependants at most, as in 2026.

In TEMPO, the income tax scale and the work-expense deduction are dated values in the Payroll module’s legal reference data, each with its start date and source: once the finance law is published, the 2027 version is added with its effective date. Periods in 2026 keep the 2026 scale.

TEMPO also prepares the payslip’s variable items from punches: overtime by rate, absences, leave and public holidays. See payroll preparation or book a demo.