Tue, 17 Feb 2026

Tue, 17 Feb 2026 Budget sees largest ever personal allowance rise

Treasury Minister Chris Thomas's budget sees the tax-free allowance rise by £2,250 to £17,000.

* The Isle of Man's Treasury Minister, Chris Thomas, announced a £2,250 increase in the personal tax allowance as part of the budget for the financial year ahead.
* This will take another 3,600 people out of the tax net completely and save median earners about £500 per year.
* The personal tax allowance will now be £17,000, doubling to £34,000 for couples.
* The higher rate of income tax remains unchanged at 21%, payable on income above £23,500.
* Workers will also benefit from a 4.8% uplift in National Insurance thresholds.
* The Manx state pension is set to rise by 4.8%, with the Basic State Pension increasing to £184.90 per week and the Manx State Pension rising to £263.55 per week.
* Most other benefits will rise by either the UK's September inflation rate of 3.8% or the Manx rate of 2.9%.
* The government is drawing down £126m from reserves as part of a new five-year strategy, which aims to reduce the island's reliance on general reserves.
* A 2% restriction on pay awards will help create £5.6m in efficiency savings across the public sector.
* The capital programme includes £250m in spending over five years, with £50m expected to be released each year.
* The biggest rise in funding allocations is a £45m uplift in the Department of Health and Social Care's budget for Manx Care, which takes healthcare spending to £412m.
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