The 2025 Finance Law restructured the progressive income tax scale. The first annual exempt bracket rose from 30,000 to 40,000 dirhams and the top marginal rate was lowered from 38% to 37%.
The applicable scale
The rate is 0% up to 40,000 dirhams, 10% from 40,001 to 60,000 dirhams, 20% from 60,001 to 80,000 dirhams, 30% from 80,001 to 100,000 dirhams, 34% from 100,001 to 180,000 dirhams and 37% above that. The corresponding amounts to be deducted are, respectively, 0, 4,000, 10,000, 18,000, 22,000 and 27,400 dirhams.
The new scale applies to non-rental income acquired from 1 January 2025 onwards and to rental income received from that date.
In practice
For employees, the scale is built into the withholding operated by the employer. For a taxpayer with several categories of income, the net overall taxable income may place the total in a higher bracket at the time of the annual return.
The exempt bracket therefore does not mean that each category of income individually benefits from a 40,000-dirham exemption. The rules specific to each type of income, the allowances, deductible expenses, withholdings already made and family relief must all be taken into account before determining the final balance.
Sources
- Directorate General of Taxes — Circular note no. 736 on the tax measures of Finance Law no. 60-24 for the 2025 budget year, 2025-03-07.
- Médias24 — Finance Law 2025: here is the DGI circular note, 2025-03-08.
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This publication is provided for information purposes only and does not constitute personalised tax or legal advice.