Isle of Man: Tax measures in 2025 / 2026 budget
Proposed reduction in individual income tax rate
The Treasury Minister delivered the 2025 / 2026 budget speech which included the following proposed tax measures:
- Reduction in top individual income tax rate from 22% to 21%
- Increase in individual (personal) allowances to £250 for single persons and £500 for jointly assessed couples
- Changes to Class 1 employees’ national insurance contributions
- Increase in maximum annual income tax liability for those electing to be “tax-capped” from £200,000 to £220,000
Read a February 2025 report prepared by the KPMG member firm in the Isle of Man