Isle of Man: 2026 budget proposals include increased individual allowances
No other adjustments to tax rates and thresholds
The Isle of Man Treasury Minister on February 17, 2026, announced an increase in individual (personal) allowances during the 2026-2027 budget speech.
The tax-free banding for individually assessed taxpayers will increase by £2,250, and for jointly assessed couples, it will double to £4,500. This change would result in tax savings of up to £450 per year for individual taxpayers and up to £900 for couples, with additional savings from National Insurance Contributions for lower- and middle-income earners.
The budget did not introduce changes to the top rate of income tax, maintaining the rate at 21%, which was reduced from 22% last year following consultation on a proposed healthcare levy. Other tax rates and thresholds remain unchanged, and the maximum income tax liability for those electing to be “tax-capped” remains at £220,000 per year (£440,000 for jointly assessed couples).
Read a February 2026 report prepared by the KPMG member firm in the Isle of Man