Islanders will benefit from a 1% cut in the higher rate of income tax, taking it down to 21%.
Treasury Minister Dr Alex Allinson unveiled his third Budget early this morning.
Dr Allinson also announced that the personal income tax allowance will rise by £250 for individuals, £500 for jointly-assessed couples while there has also been changes to National Insurance thresholds.
There will also be a significant increase of £10,000 in the income thresholds for Child Benefit while the tax cap will increase to £220,000 a year.
He said: “These measures combine to specifically help single people on low wages and working families putting an extra £1000 into the pockets of a middle income household with two children.”
Unlike changes made in the UK last year, there will be no increase in the Employer NI rate, which Dr Allinson said would protect businesses finances.
a plan to put money back in people’s pockets – Allinson
Dr Allinson added: “The Pink Book published today is a plan to put money back in people’s pockets, to increase consumer confidence, to give business certainty and stability, and to enable continuing economic growth that can be enjoyed by all those who call the Isle of Man their home.”
Most benefits will increase in line with inflation at September 2024 – reciprocal benefits with the UK by 1.7% (UK CPI) and others by 2.2% (Isle of Man CPI).
Above inflation benefit rises will be applied to the Nursing Care Contribution (5.3%) and Maternity, Paternity and Adoption allowances (3.5%).
The Winter Bonus, an annual benefit aimed at helping vulnerable individuals with fuel payments and staying warm, will be increased by £50 to £400.
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