Finance

Morocco: Move Toward Income Tax Exemption for Low Wages from 2027

26 October 2026·2 min read

Before Parliament, Fouzi Lekjaa said salaried workers earning less than 10,000 dirhams net per month could stop paying income tax from 2027. The minister cites 87% of salaried workers as fully exempt. The bill still needs to be voted.

Morocco: income tax could disappear for salaries under 10,000 dirhams from 2027

A major tax reform is being prepared in Morocco. From January 2027, employees earning less than 10,000 dirhams net per month could stop paying income tax. The measure was announced on Friday 23 October by Fouzi Lekjaa, Minister of Economy and Finance, before both chambers of Parliament.

According to the minister, 87% of Moroccan employees would thus be fully exempt. The remaining 13% would continue to pay income tax. For the households concerned, the government estimates a monthly gain of around 500 dirhams from 2027. The cost of this tax cut is put at 5.5 billion dirhams for the public finances.

Two figures need to be kept apart. The project plans to raise the exempt portion of taxable income from 40,000 to 60,000 dirhams per year. This amount is not the 10,000-dirham net monthly salary threshold announced by the minister for employees.

The reform would continue gradually until 2031, with a reorganisation of the tax brackets and a reduction in the rates applicable to the highest incomes. The government intends to finance these reliefs while keeping the budget deficit at 3% of GDP in 2027.

Nothing has been finalised yet. Parliament must examine and vote on these provisions before their planned application on 1 January 2027.

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