The senior citizen income tax slabs FY 2026-27 remain largely unchanged following the Union Budget 2026. While many expected higher exemption limits or additional relief for elderly taxpayers, the government has retained the existing slab structures under both the old and new tax regimes.
This guide explains senior citizen income tax slabs FY 2026-27, compares the old vs new tax regime, and highlights key Budget 2026 updates affecting elderly taxpayers.
Classification of Taxpayers Based on Age
Under the Income Tax Act, individuals are classified based on age as follows:
-
Individuals below 60 years
-
Senior citizens: 60 years or more but below 80 years
-
Super senior citizens: 80 years and above
These age-based categories are relevant mainly under the old tax regime, where higher exemption limits apply.
Basic Exemption Limits for Senior Citizens Under Old Tax Regime
One of the biggest advantages of the old tax regime is the higher basic exemption threshold for senior citizens.
-
Senior citizens (60–79 years): ₹3,00,000
-
Super senior citizens (80 years and above): ₹5,00,000
This higher exemption makes the senior citizen income tax slabs FY 2026-27 under the old regime particularly attractive for retirees with pension or interest income.
Income Tax Slabs for Senior Citizens (60–79 Years) – Old Regime
Under the old tax regime, Senior citizen income tax slabs FY 2026-27 are taxed as follows:
-
Income up to ₹3,00,000: Nil
-
₹3,00,001 to ₹5,00,000: 5%
-
₹5,00,001 to ₹10,00,000: 20%
-
Above ₹10,00,000: 30%
This structure offers relief at lower income levels and works well when combined with deductions under Sections 80C, 80D, and 80TTB.
Income Tax Slabs for Super Senior Citizens (80+ Years) – Old Regime
Super Senior citizen income tax slabs FY 2026-27 enjoy even greater relief under the old regime:
-
Income up to ₹5,00,000: Nil
-
₹5,00,001 to ₹10,00,000: 20%
-
Above ₹10,00,000: 30%
For retirees aged 80 or above, this makes the old regime far more beneficial in many cases.
Income Tax Slabs Under the New Tax Regime (All Ages)
Under the new tax regime, no special exemption limits apply to senior or super senior citizens. The same slabs apply to all individuals:
-
Up to ₹4,00,000: Nil
-
₹4,00,001 to ₹8,00,000: 5%
-
₹8,00,001 to ₹12,00,000: 10%
-
₹12,00,001 to ₹16,00,000: 15%
-
₹16,00,001 to ₹20,00,000: 20%
-
₹20,00,001 to ₹24,00,000: 25%
-
Above ₹24,00,000: 30%
Most deductions and exemptions are not available under this regime.
Effective Tax-Free Income Under New Regime
Due to the standard deduction and rebate provisions, income up to ₹12.75 lakh can be effectively tax-free under the new tax regime, provided the income qualifies as normal income and excludes capital gains.
This makes the new regime attractive for senior citizens with simple income structures and no major deductions.
Senior Citizen Income Tax After Budget 2026
Despite expectations, Budget 2026 did not introduce any new tax slab changes or special exemptions for senior citizens. The senior citizen income tax slabs FY 2026-27 remain unchanged under both regimes.
However, the government announced an important compliance relief measure.
Key Budget 2026 Relief for Senior Citizens
To simplify TDS compliance, the government has allowed Form 15G and Form 15H to be submitted once to depositories, instead of separately to multiple companies.
This change reduces paperwork, prevents excess TDS, and benefits senior citizens who earn income from interest and dividends.
Old vs New Regime: Which Is Better for Senior Citizens?
The right choice depends on your income profile:
-
The old regime suits senior citizens claiming deductions like:
-
Section 80C investments
-
Section 80D medical insurance
-
Section 80TTB interest income
-
-
The new regime works better for those with:
-
Limited deductions
-
Pension-only or fixed income
-
Income up to ₹12–13 lakh
-
A comparative tax calculation is strongly recommended.
The senior citizen income tax slabs FY 2026-27 continue to offer flexibility through two parallel tax regimes. While Budget 2026 did not provide additional slab relief, procedural simplifications and stable tax structures allow senior citizens to plan effectively.
Choosing the right regime can significantly reduce tax liability and improve post-retirement financial stability.
👉 Want help choosing the right tax regime for FY 2026-27? Explore our Income Tax Planning Services for Senior Citizens – Click here
