Income Tax in Morocco 2026: the 37% scale (2025 reform) and what is new for MRE professionals
Morocco's 37% top income tax rate above MAD 180,000 dates from the 2025 Finance Act, not 2026. What the 2026 Act really changes for MRE professionals, and how the non-resident regime fits in.
Morocco's 37% top marginal income tax rate above MAD 180,000 has been in force since the 2025 Finance Act, not 2026. Here is what the 2026 Finance Act actually changes, and what it means for MRE professionals and entrepreneurs.
First, let us get the dates right
A common confusion circulates. The reduction of the top marginal income tax rate from 38% to 37%, together with raising the exempt bracket from MAD 30,000 to MAD 40,000, are part of the 2025 Finance Act scale reform, in force since 1 January 2025. The 2026 Finance Act did not change the income tax scale: brackets and rates remain identical to 2025.
The income tax scale applicable in 2026
| Annual income bracket (MAD) | Rate |
|---|---|
| 0 to 40,000 | 0% |
| 40,001 to 60,000 | 10% |
| 60,001 to 80,000 | 20% |
| 80,001 to 100,000 | 30% |
| 100,001 to 180,000 | 34% |
| Above 180,000 | 37% |
The MAD 40,000 exempt bracket and the 37% top rate therefore result from the 2025 reform, carried over unchanged into 2026.
What the 2026 Finance Act actually changes
For employees, the concrete novelty in 2026 is the increase in the deduction for dependents, rising from MAD 500 to MAD 600 per person per year, capped at 6 people. A household with the maximum number of dependents therefore saves up to MAD 600 in tax over the year (MAD 100 more per person, times six).
It is a modest measure, but it confirms the path set in 2025: gradually easing the tax burden on households and earned income.
The tax regime for non-resident MREs
Non-tax-resident MREs benefit from a specific regime:
- •Their foreign-source income is not taxable in Morocco
- •However, rental income (from property located in Morocco) falls within the Moroccan tax base
- •Dividends received from a Moroccan company are also taxable in Morocco
Depending on your country of residence and the applicable bilateral tax treaty, it is often possible to structure your income to avoid double taxation and control your overall tax burden.
What this means for you
If you are an engineer, doctor, legal professional, finance specialist or entrepreneur living abroad and considering a return or dual-country activity in Morocco, the 37% scale and the exemption up to MAD 40,000 form the reference framework. Before any decision, have your situation mapped by a Moroccan chartered accountant: the combination of the scale, the non-resident regime and tax treaties can produce very different outcomes depending on your profile.
Sources
- •2025 Finance Act (IR scale reform: MAD 40,000 exempt bracket, 37% top rate)
- •2026 Finance Act (deduction for dependents raised to MAD 600 per person per year)
- •Directorate General of Taxes (tax.gov.ma), income tax scale in force
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