That's according to Treasury Minister Alf Cannan, who delivered his budget for the 2018-2019 financial year in Tynwald this morning.
Mr Cannan said the personal income tax allowance will go up by £750, from £12,500 per person to £13,250.
He also announced an additional £13.8 million will be spent on public services, including an extra £5.5 million for the Department of Health and Social Care and £1.1 million to the Department of Infrastructure to improve the Island's roads.
Mr Cannan claims the Island's economy is stronger than this time last year, with a lower unemployment rate and more people currently in work.
The debate will continue in Tynwald this afternoon.
Dominos advertises for staff to work in new Ramsey store
Cost of new patient transfer buses queried
What consideration's being given to getting rid of tax discs?
Can people on benefits still get support if they're treated privately?
Manx student speaks in House of Commons
Below average rainfall in October despite unsettled weather
What's the government doing to encourage people to buy Manx produce?
Debate over MiCards to continue in Keys next week
