Wed, 18 Feb 2026

Wed, 18 Feb 2026 Rise in tax-free pay allowance 'totally positive'

The Local Economy Forum welcomes a £2,250 rise in the personal allowance on the Isle of Man.

* The Isle of Man's personal tax allowance has been increased by £2,250 to £17,000, benefiting workers with a take-home pay rise equivalent to a 9.9% minimum wage hike.
* This change, outlined in the budget by Treasury Minister Chris Thomas, is expected to cost £25m and was three times larger than initially planned.
* The increase will double to £34,000 for couples, providing more disposable income for workers and their families.
* The move has been welcomed by Manx Businesses and pressure groups as a "totally positive" step forward, with the Chairman of the Local Economy Forum (LEF) calling it a "solid step forward".
* Some MHKs have criticized the change due to its cost to the island's reserves, while others in the care sector have expressed concerns about the knock-on effects on staff and benefits.
* The increased personal allowance will provide more people with additional income to spend as they choose, and is seen as a positive move for the economy.
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