Budget 2026: Why millennials want income tax relief as education and housing costs soar

As the cost of education, housing and healthcare continues to rise, India’s millennials are finding it harder to balance taxes, savings and long-term goals.

Ahead of Union Budget 2026, many in the 30–45 age group say their biggest concerns are high income tax outgo, expensive schooling, unaffordable homes and limited relief on education loans.

From tax slabs to tuition fees, here’s what millennials want Finance Minister Nirmala Sitharaman to address in her February 1 Budget.

Budget 2026 expectations of millennials

“With rising expenses like rent, healthcare, and school fees, someone earning ₹12 lakh a year finds it hard to manage after taxes. Even basics feel squeezed,” said Anubha Sinha, a 41-year-old Noida-based teacher.

For many millennials, quality education comes with a hefty price tag. Annual fees for one child, including transport, can easily reach ₹2.5–3 lakh. For someone earning around ₹12-₹14 lakh a year, this leaves little room for savings, rent, or other essentials. Higher education, especially abroad, feels even more unattainable without loans or heavy financial planning.

“Even with a decent salary, the cost of sending my child to a good school makes me wonder how I’ll ever manage higher education abroad. It’s a constant balancing act between taxes, living costs, and school fees,” said Rhea Mehta, 35, a working professional in Mumbai.

Currently, Section 80E allows tax deductions on education loan interest for only 8 years. Big degrees often take longer to repay. Extending this benefit would ease financial pressure.

The majority of millennials do not choose to rent because it is enjoyable. Rather, purchasing a house seems like a far-off dream.

"What stings is watching a significant portion of our hard-earned income vanish before it even reaches our hands. We work very hard. We pay our taxes. We are trying to build a stable life,” said Anubha Sinha, a 41-year-old Noida-based teacher.

Despite the Reserve Bank of India (RBI) cutting the repo rate by 1.25 basis points in 2025, housing sales declined across cities. Anarock Research reports that property prices still rose by roughly 8% over the year, climbing from ₹8,590 per square foot at the close of Q4 2024 to about ₹9,260 per square foot in Q4 2025.

"On an annual basis, the collective average housing price rose by 8% in the top 7 cities - from ₹8,590/sq. ft. by Q4 2024-end to around ₹9,260/sq. ft. at Q4 2025-end. At 23%, Delhi-NCR recorded the highest yearly average residential price rise – from ₹7,550/sq. ft. in 2024 to about ₹9,300/sq. ft. in 2025. The other major cities recorded single-digit price appreciation, ranging between 4-9% in 2025 as against last year’s 13-27% in 2024," Anarock Research said.

When sending money abroad for education, TCS is deducted upfront. Removing or reducing this tax for loan-funded or personal remittances would free up cash for families.

Mental health care is a necessity, not a privilege. “As fatigue becomes increasingly common, mental health resources should be recognised as vital rather than a privilege. Ensuring everyone has access to basic care is a critical investment,” says Mehta.

Millennials are asking for practical, long-term relief in areas that touch daily life: education, housing, health, and career flexibility.

Tax experts say while not all demands may be met, income tax relief and education-related changes are among the most realistic expectations from Budget 2026, given slowing consumption and pressure on middle-income households.