Starting in January 2025, Morocco’s Finance Bill introduces major income tax cuts aimed at boosting the purchasing power of both public and private sector workers.
These tax reforms are designed to relieve financial pressure on employees, particularly benefiting middle-class earners.
Key measures in the 2025 tax plan:
- Exemption for low-income earners: Monthly salaries below 6,000 dirhams will be exempt from income tax.
- Expanded tax brackets: Income tax brackets will be adjusted, reducing the rates for middle-class incomes.
- Lowering the top tax rate: The highest marginal tax rate will drop from 38% to 37%.
- Increased family allowance: The tax deduction for family dependents will rise from 360 dirhams to 500 dirhams per dependent.
Breakdown of tax reductions
The new tax cuts vary by income level, with reductions increasing for higher earners:
- Salaries between 6,001 and 8,000 dirhams: Monthly tax savings of 460 dirhams.
- Salaries between 8,001 and 10,200 dirhams: Monthly tax savings of 570 dirhams.
- Salaries between 10,201 and 13,000 dirhams: Monthly tax savings of 780 dirhams.
- Salaries above 13,001 dirhams: Monthly tax savings of 980 dirhams.
These reforms, as reported by labor union sources, aim to improve the financial well-being of employees across different income brackets, providing much-needed relief in the face of rising living costs.
