The 2026-2031 government programme, presented to Parliament on 19 October 2026, plans a further cut in income tax (IR). A higher tax-free threshold, a simpler scale and a lower top rate: the announcements directly affect employees and their employers. But this is a political commitment, to be implemented gradually through successive finance laws. Here is what has been announced, what is already in force and what to watch.
What the programme provides
The announced reform is to be phased in from 2027 to 2031, after an assessment of its cost and impact. It is therefore not a single, immediate change but a path to be rolled out year after year. It would be accompanied by a broader tax base and a stronger fight against tax evasion. Its main parameters, as presented, are:
- the tax-free threshold of annual net taxable income would rise from 40,000 DH to 60,000 DH;
- the scale would be reduced to three brackets, taxed at 10%, 20% and 30%;
- the top marginal rate would fall from 37% to 30%.
A timetable that depends on finance laws
According to the press, including Le360, the higher threshold and part of the cut could apply from January 2027 through the 2027 finance law. The 2027 finance bill was adopted by the Government Council on 20 October 2026 and is to be filed in Parliament.
Until the finance law is voted and published in the Bulletin officiel (Official Gazette), nothing changes: the current scale continues to apply. The parliamentary debate may alter the proposed measures, and the later stages of the reform will depend on the finance laws for 2028 to 2031.
Reminder: the reform in force since 2025
This announcement extends a reform already in place. Since 1 January 2025, the tax-free threshold has risen from 30,000 DH to 40,000 DH and the top rate has fallen from 38% to 37%. In addition, pensions paid by the basic scheme have been exempt from IR since 1 January 2026. These are the rules that apply today, not those of the programme.
What employers should watch
Employers withhold IR at source on salaries. If the 2027 finance law adopts a new scale from January, payroll software will need to be updated for the first payroll of the year. It is prudent to wait for the published text before changing anything and not to apply in advance a scale that has only been announced.
Our advice: follow the finance bill through Parliament, check the effective date adopted and prepare clear information for employees, whose net pay will change if the reform is adopted. Payroll departments and accounting firms should plan for the January workload.
What employees can take away
The effect of the reform will depend on income level and on the text finally voted. If the 60,000 DH threshold is adopted, annual net taxable income between 40,000 DH and 60,000 DH would no longer be taxed. Beyond that, be wary of simulations circulating before the final text is published.
Sources
- Médias24, 20 October 2026: article on the income tax scale cut announced by the government
- Le360, 20 and 21 October 2026: coverage of the government programme and the 2027 finance bill
- erh.ma: IR exemption of basic-scheme pensions since 1 January 2026
Maître Mouad Lahfaia
Lawyer at the Rabat Bar
This article reflects the author's views as at the date of publication. It does not constitute legal advice and is no substitute for an analysis of your particular situation.