Morocco plans to exempt workers earning under 10,000 dirhams a month from income tax

A salary of less than 10,000 dirhams net per month and no more income tax to pay. That is the change announced on Friday, October 23, by Fouzi Lekjaa, Morocco’s Minister of Economy and Finance, before both chambers of Parliament.

The measure, included in the tax reform accompanying the 2027 finance bill, is due to take effect on January 1. According to the minister, it would fully exempt 87% of Moroccan employees. 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 estimated at 5.5 billion dirhams for public finances.

As Reuters reports, the reform is one of the main measures in the new budget, presented with the aim of supporting purchasing power and reducing inequality.

A new tax-exemption threshold from January 2027

The plan calls for raising the annual tax-exempt taxable-income bracket from 40,000 to 60,000 dirhams. This represents 5,000 dirhams in monthly income subject to the tax scale.

This amount corresponds to the taxable base calculated after deductions provided for by law. It differs from the 10,000-dirham net monthly salary threshold announced by the minister for employees.

The reform would continue gradually through 2031, with a restructuring of the tax brackets and a reduction in the rates applicable to the highest incomes.

The government intends to fund these tax breaks while keeping the budget deficit at 3% of GDP in 2027. It is also allocating 62 billion dirhams to social measures and support for purchasing power.

The Finance Ministry published the bill and budget documents on October 23. Parliament must now review and vote on these measures before their planned implementation on January 1, 2027.