Union Budget 2026: What Salaried Taxpayers Are Hoping For and Why It Matters

With the Union Budget 2026 just around the corner, salaried taxpayers across India are keenly watching what Finance Minister Nirmala Sitharaman might announce on February 1, 2026. After last year’s major tax relief measures , individuals earning a salary want further income tax benefits, simpler tax compliance, and better take-home income . Experts and taxpayers alike have shared their Budget 2026 expectations as anticipation builds.

Income tax is one of the most talked-about parts of any Union Budget, especially for salaried workers and middle-class families who closely follow changes that can reduce their tax burden. In last year’s budget, the government made significant changes, including making income up to ₹12 lakh tax-free and increasing the effective tax-free limit for salaried people to ₹12.75 lakh due to the ₹75,000 standard deduction .

Higher Standard Deduction in Union Budget 2026

One of the main Budget 2026 expectations for salaried taxpayers is an increase in the standard deduction. Currently, the standard deduction under the new tax regime is ₹75,000. Many workers hope this could be raised to ₹1 lakh in the upcoming Union Budget 2026, which would mean income up to ₹13 lakh could be tax-free for many salaried individuals. This change would help households manage rising living costs and boost disposable income.