Budget 2026: Will There Be More Income Tax Relief for Salaried Individuals?

Budget 2025 brought major relief to the taxpayers by introducing enhanced rebates, higher basic exemptions, and revised tax slabs. With the upcoming Budget 2026, which is scheduled to be presented on February 1, 2026, taxpayers are expecting more income tax benefits this year.

In Budget 2026, middle-class salaried people are hoping for steps that ease their tax burden. However, it is likely that the Finance Minister Nirmala Sitharaman will not make any significant changes in the income tax rules.

Income Tax Slab Rates for FY 2025-26: Old Tax Regime

• Income up to Rs 2,50,000 – Nil
• Rs 2,50,001 to Rs 5,00,000 – 5%
• Rs 5,00,001 to Rs 10,00,000 – 20%
• Income above Rs 10,00,000 – 30%

Income Tax Slab Rates for FY 2025-26: New Tax Regime

• Income up to Rs 3,00,000 – Nil
• Rs 3,00,001 to Rs 6,00,000 – 5%
• Rs 6,00,001 to Rs 9,00,000 – 10%
• Rs 9,00,001 to Rs 12,00,000 – 15%
• Rs 12,00,001 to Rs 15,00,000 – 20%
• Income above Rs 15,00,000 – 30%

Comparison Between Old Tax Regime and New Tax Regime

The biggest difference between the old and new tax regimes is the tax slabs. The old tax regime has fewer tax slabs, while the new tax regime breaks income into more slabs, helping many taxpayers pay less tax.

Another difference is the tax deductions offered under both regimes. The old tax regime offers more deductions compared to the new tax regimes.

Budget 2026: What Are Salaried Taxpayers Expecting?

For the new tax regime, the current standard deduction is Rs 75,000, which was increased from Rs 50,000. The taxpayers are urging the finance minister for increased standard deduction along with relief in TDS rates.

Budget 2026: What to Expect for Salaried Taxpayers?

Tax experts say that there are fewer possibilities that the government will make any new changes to the income tax slab rates in the Budget 2026. Still, there is strong hope for revision in TDS and standard deductions.