Taxation - Personal Income Tax
The island has its own income tax and customs and excise framework and is independent from the United Kingdom in respect of direct taxation. Income tax is low, the standard rate being 10% and the higher rate being 20%.
There is also a personal taxation cap which means that an individual's annual personal tax liability is limited to £175,000 irrespective of income generated subject to a five year election or £350,000 if jointly elected. For any elections commencing from the 2020/2021 tax year, the maximum income tax liability for an individual will increase to £200,000 and £400,000 for a jointly assessed couple.
There are also no stamp duties, capital gains tax, wealth tax, capital transfer tax, inheritance tax or death duty imposed in the Isle of Man.