Isle of Man

National insurance contributions

For the tax year commencing 6 April 2026, Class 1 national insurance contributions are payable by employees where earnings are greater than £176 per week (£763 per month). Employment income between £176 and £1,082 per week (£763 and £4,689 per month) is subject to national insurance at 11%. Earnings above £1,082 per week (£4,689 per month) are subject to national insurance at 1%.

Employers are also required to make a national insurance contribution in respect of each employee at rates dependent on individual circumstances.

Class 2 national insurance contributions are payable by individuals who are self-employed, where profits are greater than £9,152 per annum. Profits greater than £9,152 are subject to national insurance at a flat-rate contribution of £6.75 per week (£351 per annum). Self-employed individuals are also subject to Class 4 national insurance at a rate of 8% on profits between £9,152 and £56,264, and at 1% on profits over £56,264.

The lower earnings limit for class 1 contributions is £559 per month.

Value-added tax (VAT)

The standard rate of VAT is 20% and is applicable on the purchase of most goods and services. Some supplies (e.g. food, books and publications, public transport) are charged at 0% VAT. There is also a rate of 5% VAT charged on domestic property repairs.

It should be noted that self-employed individuals who have a turnover of more that £90,000 are required to register for VAT and charge it to their customers at the relevant rate.

Net wealth/worth taxes

There are no net wealth/worth taxes in the Isle of Man.

Inheritance, estate, and gift taxes

There are no death duties, estate duties, or gift taxes in the Isle of Man.

Customs and excise duties

In addition to VAT, the Isle of Man forms a common jurisdiction for customs and excise duties with the United Kingdom, and, again, the rules are broadly identical. Customs duties are levied on most goods imported from outside the European Union (EU) into the Isle of Man, and there are various rates of duty that apply. Excise duties apply to such things as alcohol, tobacco, and fuels, and there are various rates of duty that apply. There is also a levy on commercial passenger flights known as Air Passenger Duty.