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 2024.

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 18/1919/2020/2121/2222/2323/2424/25
Single Allowance 13250 14000 14250 14250 14500 14500* 14500*
Jointly Assessed Couple Allowance 26500 28000 28500 28500 29000 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 18/1919/2020/2121/2222/2323/2424/25
Standard Rate 10% 10% 10% 10% 10% 10% 10%
Higher Rate 20% 20% 20% 20% 20% 20% 22%
Non-Resident Rate 20% 20% 20% 20% 20% 20% 22%

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.

Description18/1919/2020/2121/2222/2323/24 24/25
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% 22%

Income Tax Cap Election Amount

Description18/1919/2020/2121/2222/2323/2424/25
Single person Tax Cap amount 150,000 175,000 200,000 200,000 200,000 200,000 200,000
Jointly Assessed Couple Tax Cap amount 300,000 350,000 400,000 400,000 400,000 400,000 400,000

Deductions / Tax Relief

Description18/1919/2020/2121/2222/2323/24 24/25
Mortgage and Loan Interest limit** 5000 5000 5000 5000 5000 5000 5000
Benefit In Kind Exemption (not car benefit) 600 600 600 600 600 600 600
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 N/A N/A N/A
TT Homestay Allowance N/A N/A N/A N/A 2350 2350 2350

** Mortgage and Loan Interest limit is for a single person, limit is doubled for a jointly assessed couple.