Budget 2026: No Changes to Income Tax Slabs, Here's What the Impact Will Be

The Budget 2026 has not made any changes to the income tax slabs. Both the old and new tax regimes will continue to be applicable as before. Therefore, taxpayers will have to choose the right regime based on their income, investments, and exemptions to plan their taxes.

Budget 2026: Every year, when the budget is presented, the most discussed topic is the income tax slabs. From salaried individuals to business owners, everyone hopes that the government will change tax rates and provide relief. People had similar expectations from Budget 2026.

However, Finance Minister Nirmala Sitharaman has not made any changes to either the old or the new tax regime for the financial year 2026-27. This means that the tax slabs, rates, and income limits will remain the same as before. This implies that taxpayers will not benefit from any new exemptions or major changes this year and will have to plan their taxes according to the existing rules.

New Tax Regime (FY 2026-27) Slabs and Tax Rates

In the new tax regime, there are no separate slabs based on age. The same structure will apply to all taxpayers.

Major Relief in the New Regime

A tax rebate of up to ₹60,000 is available under Section 87A.
This can make income up to ₹12 lakh tax-free.
Salaried individuals get a standard deduction of ₹75,000.
This means that salaries up to ₹12.75 lakh can be tax-free.

Old Tax Regime – Slab Rates Based on Age

1) Taxpayers below 60 years of age

2) Senior Citizens (60–80 years)

3) Super Senior Citizens (above 80 years)

Surcharge (Additional Tax) – Applicable to both regimes

What this means for ordinary taxpayers:

There have been no changes to the tax slabs this year.
Therefore, taxes will have to be paid according to the old rules.
Each individual will have to decide, based on their income, investments, and deductions,
whether the old tax regime or the new one is more suitable for them.