Rates and allowances
Details of Isle of Man Income Tax Rates, Allowance and the tax treatment of Deductions, both current and historic, are provided below. In addition, information regarding National Insurance Rates and Thresholds are available.
The tax year in the Isle of Man runs from 6 April to 5 April, with any changes in Rates and Allowances, or other tax changes, announced in the Budget, usually February each year, to take affect from the next 6 April period.
Budget changes for the tax year commencing 6 April 2023.
Current Rates and Allowances
The current Rates and Allowance are shown below:
Personal Allowances 2023/24 | |
---|---|
Single Person Allowance* | £14,500 |
Jointly Assessed Couple Allowance* | £29,000 |
Single Parent Additional Allowance | £6,400 |
Blind Person Allowance | £2,900 |
Disabled Person Allowance | £2,900 |
Non-Resident Allowance | £0 |
*The Personal Allowance is reduced by £1 for every £2 that your income is in excess of £100,000 or £200,000 for a jointly assessed couple.
Personal Income Tax Rates 2023/24 | |
---|---|
Standard Rate | 10% |
Higher Rate | 20% |
Non-Resident Rate | 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.
Standard Rate Tax thresholds 2023/24 | |
---|---|
Single Person | £6,500 |
Joint Assessed | £13,000 |
Balance taxable at | 20% |
An election to cap the amount of Income Tax is available, with the current election rate shown below. Further details on the Income Tax Cap Election is available in Guidance Note 51.
Annual Income Tax Cap Election Amount 2023/24 | |
---|---|
Single Person | £200,000 |
Joint Assessed | £400,000 |
Income Tax Rates and Allowances (current and historic)
Personal Allowances
Description | 17/18 | 18/19 | 19/20 | 20/21 | 21/22 | 22/23 | 23/24 |
---|---|---|---|---|---|---|---|
Single Allowance | 12500 | 13250 | 14000 | 14250 | 14250 | 14500 | 14500* |
Jointly Assessed Couple Allowance | 25000 | 26500 | 28000 | 28500 | 28500 | 29000 | 29000* |
Single Parent Additional Allowance | 6400 | 6400 | 6400 | 6400 | 6400 | 6400 | 6400 |
Blind Persons / Disabled Persons | 2900 | 2900 | 2900 | 2900 | 2900 | 2900 | 2900 |
Non-Resident Allowance | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
*The Personal Allowance is reduced by £1 for every £2 that your income is in excess of £100,000 or £200,000 for a jointly assessed couple.
Personal Income Tax Rates
Description | 17/18 | 18/19 | 19/20 | 20/21 | 21/22 | 22/23 | 23/24 |
---|---|---|---|---|---|---|---|
Standard Rate | 10% | 10% | 10% | 10% | 10% | 10% | 10% |
Higher Rate | 20% | 20% | 20% | 20% | 20% | 20% | 20% |
Non-Resident Rate | 20% | 20% | 20% | 20% | 20% | 20% | 20% |
Standard Rate Tax thresholds
The threshold at which the Higher Rate becomes payable for a single person and for a jointly assessed married couple or civil partners is shown in the table below.
Description | 17/18 | 18/19 | 19/20 | 20/21 | 21/22 | 22/23 | 23/24 |
---|---|---|---|---|---|---|---|
Single Person | 6500 | 6500 | 6500 | 6500 | 6500 | 6500 | 6500 |
Jointly Assessed | 13000 | 13000 | 13000 | 13000 | 13000 | 13000 | 13000 |
Balance taxable at | 20% | 20% | 20% | 20% | 20% | 20% | 20% |
Income Tax Cap Election Amount
Description | 17/18 | 18/19 | 19/20 | 20/21 | 21/22 | 22/23 | 23/24 |
---|---|---|---|---|---|---|---|
Single person Tax Cap amount | 125,000 | 150,000 | 175,000 | 200,000 | 200,000 | 200,000 | 200,000 |
Jointly Assessed Couple Tax Cap amount | 250,000 | 300,000 | 350,000 | 400,000 | 400,000 | 400,000 | 400,000 |
Deductions / Tax Relief
Description | 17/18 | 18/19 | 19/20 | 20/21 | 21/22 | 22/23 | 23/24 |
---|---|---|---|---|---|---|---|
Mortgage and Loan Interest limit** | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 | 5000 |
Benefit In Kind Exemption (not car benefit) | 400 | 600 | 600 | 600 | 600 | 600 | 600 |
Nursing expenses limit | 12500 | 12500 | 12500 | 12500 | 12500 | 12500 | 12500 |
Charitable Donations | 7000 | 7000 | 7000 | 7000 | 7000 | 7000 | 7000 |
Private medical insurance limit | 1800 | 1800 | 1800 | 1800 | 1800 | 1800 | 1800 |
Homestay (TT fortnight only) | 1800 | 1800 | 1800 | 1800 | 1800 | N/A | N/A |
TT Homestay Allowance | N/A | N/A | N/A | N/A | N/A | 2350 | 2350 |
** Mortgage and Loan Interest limit is for a single person, limit is doubled for a jointly assessed couple.