TaxationPayroll 2026HR Compliance

Mastering Income Tax (IR) in Morocco: 2026 Expert Guide

2026-01-22Karim Benchakroun, CPA

Salary Income Tax (IR) is arguably the most complex component of Moroccan payroll. Understanding its mechanics is crucial for employers to ensure compliance and for employees to verify their earnings.

1. The Core Concept: Gross vs. Net Taxable

A common misconception is that tax is applied to the Gross Salary. In reality, the Moroccan tax code allows for significant deductions before tax calculation. This results in the Net Taxable Income (SNI).

The SNI Formula

SNI = Gross Salary - (CNSS + AMO) - Professional Expenses

2. The 2026 Progressive Tax Scale

Morocco uses a progressive tax system. Income is sliced into segments, each taxed at a different rate. Here is the official 2026 scale:

Monthly Income Range Rate Deduction Sum
0 - 2,500 DH0%0 DH
2,501 - 4,166 DH10%250 DH
4,167 - 5,000 DH20%666.67 DH
5,001 - 6,666 DH30%1,166.67 DH
6,667 - 15,000 DH34%1,433.33 DH
Over 15,000 DH38%2,033.33 DH

3. Key Deductions

  • Professional Expenses: A flat rate calculation (usually 20%) deducted from the salary, capped at 30,000 DH annually.
  • Family Charges: A direct tax credit of 360 DH/year (30 DH/month) per dependent.

4. The Complexity of Manual Calculation

Calculating this manually for every employee, every month, introduces significant risk of error. A slight miscalculation in the 'Net Imposable' base ripples through the entire payslip, potentially leading to labor disputes or tax fines.

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