Moving to the Island - New Residents
Have you recently moved to the Isle of Man or are you perhaps considering this? If so, the following information about income tax may be of help to you.
Income Tax Highlights – Resident Rates and Allowances for the 2023/2024 tax year
- Standard tax rate of 10%.
- Higher tax rate of 20%.
- The threshold at which the higher rate becomes payable is £6,500 for an individual and £13,000 for a jointly assessed married couple or civil partners.
- Individual personal allowance of £14,500 and £29,000 for jointly assessed married couples or civil partners. Allowances are apportioned for part year periods of residency.
- From 6 April 2023 the personal allowance will be reduced by £1 for every £2 that a person’s total income is above £100,000 (£200,000 for jointly assessed couples). This means if a person’s total income is £129,000 or above (£258,000 or above for jointly assessed couples), their personal allowance will be zero.
- A National Insurance Holiday Scheme remains in place for certain new residents and students who return to work on the Island, subject to various qualifying conditions. The Scheme allows for a one-off refund of National Insurance (Class 1) deducted in the first year, up to a maximum of £4,400.
Review a list of income tax rates and allowances.
- All new residents should complete form R25 Registration for Manx Income Tax as soon as possible after moving to the Island.
- Married couples and civil partners will automatically be independently taxed, but can choose to be jointly taxed with the ability to utilise unused personal allowances of either partner.
- The tax year in the Isle of Man runs from 6 April to 5 April.
- Income tax returns are issued in early April and must be completed on or before 6 October, either online using Online Services or by paper return. Penalties can be applied if return forms are not returned, or are returned late.
- All the income of an individual is assessed on a current year basis. For example, the 2020/2021 year of assessment is based on the income of the year ending 5 April 2021.
- Residents must declare their worldwide income on their income tax return and may receive Double Taxation Relief on income that is taxed in other countries.
- The Isle of Man has a number of tax agreements with various countries. Please refer to the section on International Agreements for further information.
- The Island does not have Capital Gains Tax or Inheritance Tax.
- When a person is in employment their employer will deduct income tax from their pay on each pay day, known as Income Tax Instalment Payments (ITIP).
- If an individual wants to become self-employed, they must first call or visit our office to discuss their employment status.
The following income tax information may also be of interest:
Taxation of Married Couples (references to husband and wife apply equally to civil partners and same sex married couples)
Tax Cap Election
Tax Residence in the Isle of Man
Information about National Insurance Contributions in the Island can be found on our National Insurance page.
If you are not resident in the Isle of Man but have income from the Island, the information on our Non-Resident page might be of interest.
Isle of Man
+44 1624 685400