The 2026 Finance Act raises the annual income tax relief for dependants from 500 to 600 dirhams per dependant. The maximum number remains six people, which brings the maximum annual benefit from 3,000 to 3,600 dirhams.
Who can be taken into account?
The relief covers the taxpayer’s spouse, their children and children legally taken into their household. For a child, annual overall income must not exceed 40,000 dirhams and age must not exceed 27. The age condition does not apply where the child has a disability preventing them from providing for their own needs.
A female taxpayer may likewise claim the relief for her husband and children where they are legally her dependants, under the same conditions. The measure applies to income earned from 1 January 2026.
In practice
For an employee, the benefit is normally built into the employer’s calculation of withholding tax, provided that the family situation has been properly documented. A change occurring during the year — a birth, a marriage or a change in a child’s situation — must be reported together with the relevant supporting documents.
Taxpayers filing an annual return should check that the number of dependants and the corresponding relief have been correctly carried over. The cap applies to the tax relief itself, not to taxable income.
Sources
- Directorate General of Taxes — Circular note no. 737 on the tax measures of Finance Act no. 50-25 for the 2026 budget year, 2026-03-09.
- Directorate General of Taxes — Circular note no. 737 — full text (74 pages), 2026-02-27.
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This publication is provided for information purposes only and does not constitute personalised tax or legal advice.