Morocco Plans Income Tax Cut for Workers

Morocco ‘s cabinet adopted the draft budget for 2027 on Tuesday 20 October 2026, in Rabat. The text is known as Draft Finance Law 60.26.

The news outlet Le360 reports that the budget is expected to start a large income-tax cut for salaried workers. The ministry has not published those details, so American readers should treat them as reported, not official.

The Government Council, Morocco’s weekly cabinet meeting, adopted the 2027 Draft Finance Law on Tuesday 20 October 2026. Prime Minister Fatima Ezzahra El Mansouri chaired it.

The Médias24 business site reports that the text is due to be presented to both houses of Parliament on Friday 23 October 2026. El Mansouri presented her government’s programme to Parliament on Monday 19 October.

The budget is the first of the new government, which was formed after the 2026 elections. Much of its content was prepared by the outgoing team, so it carries earlier priorities as well as new ones.

According to Le360, which calls its report an exclusive, the tax-free annual income would rise from 40,000 dirhams (about US$4,100) to 60,000 dirhams (about US$6,100). The outlet says the share of pay that workers may deduct as professional expenses would grow from 25% to 45%.

Le360 reports that both measures would start in January 2027. It says the number of tax brackets would fall from six to three, with the top rate dropping from 37% to 30% by 2031.

Le360 says up to 87% of private-sector employees could end up paying no income tax. It also reports that a salary of about 10,000 dirhams a month (about US$1,020) would be tax-free, against about 6,000 dirhams (about US$610) today.

The outlet puts the cost at about 20 billion dirhams (about US$2 billion) over five years, or roughly 4 billion dirhams (about US$410 million) a year. It adds that the top 30% rate would apply from about 500,000 dirhams (about US$51,000) of annual net income, which it says affects fewer than 1% of employees.

Reporters link the idea to the new government’s programme, which promises more spending power for households. Le360 quotes government sources calling the reform very ambitious and even historic, which is their judgement, not ours.

Morocco is a US free-trade partner, and American firms there employ Moroccan staff on local pay scales. A lower tax burden could ease wage pressure for those employers if the reported figures hold.

Households with more income may spend more on imported goods and services, which is a possible opening for US exporters. The gain depends on how the budget is paid for, which is not yet clear.

The ministry has not confirmed the 60,000-dirham threshold, the 45% allowance or the three-bracket scale, and we could not find the rate for each bracket. It is also unclear whether the 2027 budget itself contains the full reform or only first-year measures.

The 87%, 500,000-dirham, 10,000-dirham and 20-billion-dirham figures come from Le360 alone. No source we found explains which taxes would make up the lost revenue, or what happens to self-employed workers.

It adopted Draft Finance Law 60.26 for 2027. Parliament is expected to receive it on Friday 23 October, according to Médias24.

Le360 reports a tax-free threshold of 60,000 dirhams (about US$6,100) and a 45% expense allowance from January 2027, with a 30% top rate by 2031. The ministry has not confirmed this.

Le360 estimates about 20 billion dirhams (about US$2 billion) over five years. The ministry has not published a costing, so the figure is unconfirmed.

No. The bill must be presented to Parliament, debated and voted on before it can become law.

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