Methodology - Isle of Man (2026)

Educational model - not an Income Tax Division assessment, not a tax return, not tax advice.

Employee

Personal allowance 2026: GBP 14,750. Income tax is then 10% on the next GBP 6,500 of taxable income and 21% on the remainder.
The personal allowance is tapered for income above GBP 100,000.
Optional tax cap: an individual can elect a maximum income tax liability of GBP 220,000 a year; when elected, income tax is capped at that amount.
National Insurance (Class 1, employee): 11% on earnings between the primary threshold of GBP 176 a week and the upper earnings limit of GBP 1,082 a week, then 1% above the upper earnings limit.
Employer cost: the employer contributes 12.8% on earnings above the secondary threshold.
Out of scope: the married couple's allowance and jointly assessed thresholds, age and other reliefs, pension and mortgage interest relief, and the timing of assessment and payment.

Net profit = revenue - expenses, taxed at 10% on the GBP 6,500 band above the GBP 14,750 personal allowance and 21% above, with the allowance taper over GBP 100,000 and the optional GBP 220,000 tax cap available.
National Insurance (Class 2): a flat GBP 6.75 a week for self-employed people.
National Insurance (Class 4): 8% on profits within the main band and 1% on profits above the upper limit.
Out of scope: the small-profits exception from Class 2, capital allowances, loss relief, pension reliefs, and the timing of assessment and payment.