Special income tax slabs for senior citizens in new tax regime: What experts expect from Budget 2026

While Finance Minister Nirmala Sitharaman's Budget 2025 brought significant relief for the common taxpayer, with new tax slabs and no tax on income up to ₹12 lakh, if the standard deduction is added, it comes to ₹12.75 lakh. Senior citizens and super senior citizens saw no additional concessions under the new tax regime.

Experts believe that this creates a growing gap, especially as healthcare costs rise and older taxpayers face unique financial challenges.

“They end up paying the same tax as individuals under 60. Separate slabs should be introduced for senior citizens in the upcoming budget to ensure fairness,” said Ronak Morjaria, Partner at ValueCurve Financial Services.

Under the new tax system, senior citizens receive the same basic exemption limit as younger taxpayers, despite higher medical expenses. “Additional tax support is crucial for senior citizens, especially in the context of rising healthcare costs. Increasing the basic exemption limit and allowing medical deductions beyond Section 80D could provide meaningful relief,” explained Abhishek Soni, CEO & Co-founder, Tax2win.

Calls for differentiated tax slabs

The current uniform tax slabs ignore the financial realities faced by older citizens. “A differentiated tax system, such as higher exemption limits or lower tax rates for those aged 60 and above, would make the system fairer,” said Mumbai-based tax and investment expert Balwant Jain.

Old tax regime: Senior and super senior citizens

The old tax regime offered a basic exemption limit of ₹3 lakh for senior citizens and ₹5 lakh for super senior citizens. Many experts feel these thresholds should be reinstated or expanded under the new system to ease the burden on older taxpayers.

New tax regime: Senior and super senior citizens