How much tax will you pay on your rental income in Morocco? This free rental income tax calculator applies the 40% allowance and the 2026 progressive scale, and shows the 20% flat-rate option above 120,000 MAD in rent.

How is rental income taxed in 2026?

Rental income benefits from a flat 40% allowance: the taxable base is 60% of gross rent. Gross annual rents up to 40,000 MAD are exempt.

2026 progressive income tax scale

• 0% up to 40,000 MAD
• 10% from 40,001 to 60,000 MAD
• 20% from 60,001 to 80,000 MAD
• 30% from 80,001 to 100,000 MAD
• 34% from 100,001 to 180,000 MAD
• 37% above 180,000 MAD

Withholding tax and the 20% option

When the tenant is a business, a 10% withholding tax (rents < 120,000 MAD) or 15% (≥ 120,000 MAD) applies as an advance payment. Above 120,000 MAD in rent, the landlord can opt for a 20% flat rate, which exempts them from filing a global income return.

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Frequently asked questions

Does the scale apply if I have other income?

Yes: under the progressive scale, rental income is added to your other income, which can push you into a higher bracket. This tool assumes rent is your only income; for a full calculation, consult a professional.

When is the 20% option worthwhile?

Often above 120,000 MAD in rent, when your marginal bracket would exceed 20%. It also simplifies filing obligations.

Indicative estimate based on Moroccan tax rules in force in 2026 (DGI, 2025 Finance Act). Actual amounts depend on your overall situation, possible exemptions and the tax authority’s assessment. This tool does not constitute tax advice: consult a professional. Source: DGI (tax.gov.ma).

Rental income tax in Morocco: key points for 2026

Rental income benefits from a 40% allowance followed by the progressive scale; a 20% flat-rate option applies above 120,000 MAD. The applicable rules are based on the General Tax Code and the Finance Act; scales and rates may change each year.

How to use the result?

This tool gives an instant estimate from your figures. For an investment decision in Marrakech, Agadir or elsewhere in Morocco, cross-check it with our other calculators (yield, cash flow, taxes) and have your case reviewed by a professional.

Support from Armonia Solutions

Armonia Solutions advises investors in Morocco, Marrakech and Agadir on structuring, financing and optimizing their rental project.

More frequently asked questions

Does the scale apply with other income?

Yes: under the progressive scale, rents are added to your other income. The tool assumes they are your only income.

Les valeurs par défaut sont-elles fiables ?

These are 2026 orders of magnitude to adjust to your actual situation. The tool is no substitute for personalized advice.

To go further: discover all our free practical tools and check the official source Direction Generale des Impots (DGI).

For reference, amounts are also converted to US dollars (1 $ ≈ 10 MAD, indicative rate). For an up-to-date rate, use our currency converter.

Read also: Real Estate Tax in Morocco: A Comprehensive Analysis