# Morocco Plans Income Tax Cut for Workers

> Morocco's government to cut income tax for salaried workers starting 2027.
- Title: Morocco Plans Income Tax Cut for Workers · The Rio Times
- Summary: Morocco's government to cut income tax for salaried workers starting 2027. Morocco's draft 2027 budget may raise tax-free income threshold to 60,000 dirhams…
- Keywords: morocco, income tax, tax-free threshold, professional expenses, draft finance law, 2027 budget, le360, fatima ezzahra el mansouri, news, world, politics, Plans
- Source: The Rio Times — https://riotimesonline.com/morocco-income-tax-cut-plan-2027
- Author: Samuel Ncube
- Published: 2026-10-21T21:52:12+00:00
- Read time: 1 min
- Topics: morocco, income tax, tax-free threshold, professional expenses, draft finance law, 2027 budget, le360, fatima ezzahra el mansouri, news, world, politics
## Morocco's Cabinet Adopts 2027 Budget
Morocco's cabinet, led by Prime Minister Fatima Ezzahra El Mansouri, adopted the draft 2027 budget law on Tuesday 20 October 2026.
## Tax Changes Reported by Le360
Le360 reports a tax-free annual income threshold rising from 40,000 dirhams to 60,000 dirhams (about US$6,100) starting January 2027.
## Professional Expense Deductions Increase
Le360 reports the share of pay workers may deduct as professional expenses growing from 25% to 45% starting January 2027.
## Tax Brackets Reduce to Three
Le360 reports the number of tax brackets falling from six to three with the top rate dropping from 37% to 30% by 2031.
## Estimated Cost of Reform
Le360 estimates the reform could cost about 20 billion dirhams (about US$2 billion) over five years, or roughly 4 billion dirhams (about US$410 million) annually.
## Impact on Workers
Le360 says up to 87% of private-sector employees could end up paying no income tax starting January 2027.
## What It Means for American Firms
Morocco is a US free-trade partner, so lower tax burdens could ease wage pressure for American firms employing Moroccan staff.
## Key takeaway

Morocco's draft 2027 budget may raise tax-free income threshold to 60,000 dirhams (US$6,100) and increase professional expense deductions for workers.