Taxmann's Analysis | Comparative Analysis of Tax Liability under the New Tax Regime

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The Union Budget 2026, presented today, maintains continuity for salaried taxpayers under the new tax regime. The government has decided to keep the tax slab rates unchanged, ensuring that individuals choosing the new regime face the same tax liability as last year.

By keeping rates steady, the budget signals confidence in the current structure of the new tax regime and allows taxpayers to plan their finances without the disruption of frequent changes.

Net Tax Savings for an Employee Opting for the New Tax Regime in Financial Years 2025–26 and

Salary Income (After Standard Deduction)

Tax Liability

The above comparison clearly shows that there is no change in tax liability under the new tax regime between FY 2025-26 and FY 2026-27, across all salary levels. From middle-income earners to very high-income salaried individuals, the total tax payable remains the same year-on-year.

This confirms that the Union Budget 2026 has kept the new tax regime slabs and rates unchanged. As a result, employees choosing the new tax regime do not face any extra tax burden or receive additional tax savings compared to last year.

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