Budget 2026: No change in income tax slabs
What's the story
Finance Minister Nirmala Sitharaman has announced the Union Budget for 2026-27. The budget does not propose any changes to the income tax slabs under the new regime, continuing with the structure introduced in last year's budget. This means that the existing rates and thresholds will continue to apply from Assessment Year (AY) 2026-27.
Tax continuity
Standard deduction for salaried taxpayers retained at ₹75,000
The decision to maintain the income tax slabs signals policy continuity rather than fresh tax relief for salaried individuals. The standard deduction for salaried taxpayers has been retained at ₹75,000. No major new concessions were announced in the Budget speech for senior citizens, housing, or savings instruments.
Previous changes
Tax slabs under new regime
In the previous year, the government effectively raised the tax-free income threshold to ₹12 lakh through rebates while keeping a standard deduction of ₹75,000 for salaried individuals. The existing new tax regime slabs are as follows: Nil up to ₹4 lakh; 5% from ₹4 lakh-₹8 lakh; 10% from ₹8 lakh-₹12 lakh; 15% from ₹12-16 lakh; 20% from ₹16-20 lakh; 25% from ₹20-24 lakh and finally, a flat rate of 30% above an annual income of over ₹24 lakh.