How much income tax does a senior citizen pay in India?

In FY 2026-27, age changes only the old regime. A resident aged 60 to 79 pays nothing on the first ₹3,00,000 instead of ₹2,50,000, and at 80 or over the first ₹5,00,000 is tax-free. The new regime has the same slabs at every age, and on a ₹10,00,000 pension it charges nil, against ₹1,04,000 in the old regime at 65.

What changes at 60 and at 80

Only the old regime looks at age. Below 60 its first ₹2,50,000 of taxable income is tax-free; from 60 to 79 that rises to ₹3,00,000; from 80 it rises to ₹5,00,000 and the 5% band disappears entirely, so tax starts at 20% on income above ₹5,00,000.

Two deductions also widen at 60 in the old regime. The health insurance deduction for your own policy rises from ₹25,000 to ₹50,000, and the ₹10,000 allowance for savings-account interest is replaced by one of ₹50,000 that covers deposit interest too.

The new regime ignores age. Its slabs, its ₹75,000 standard deduction and its full rebate up to ₹12,00,000 of taxable income are identical at 35 and at 85.

The tax on a pension, by age

A pension from a former employer is taxed as salary, so it gets the standard deduction: ₹50,000 in the old regime and ₹75,000 in the new. The table assumes no other deductions, which is the case the old regime handles least well.

On ₹10,00,000 the new regime charges nil at any age, because taxable income of ₹9,25,000 sits inside the rebate. The old regime charges ₹1,06,600 below 60, ₹1,04,000 at 65 and ₹93,600 at 82. The age bands lower the old-regime figure, but on these amounts they do not close the gap.

With health insurance and deposit interest

Take ₹10,00,000 of income in all, including ₹50,000 of interest from savings and deposits, with a ₹50,000 health insurance premium. At 65 the old regime allows ₹50,000 for the premium and ₹50,000 for the interest, and the tax comes to ₹83,200; at 82 it is ₹72,800. Below 60 the same figures earn only ₹25,000 and ₹10,000 of deductions, and the tax is ₹99,320.

The new regime allows neither deduction, and charges nil on the same ₹10,00,000 at every age. Which regime comes out lower depends on how large your deductions are, and the comparison is worth running on your own figures each year rather than assumed.

What these figures leave out

They assume a resident individual whose income is a pension and interest. They do not include rental income, capital gains, business income or surcharge, and they do not cover the other old-regime reliefs that apply to some seniors, such as those for medical treatment of specified illnesses.