STT Hike in Budget 2026–27: What Changes for Futures Traders

Written by: Sachin GuptaUpdated on: 7 Feb 2026, 2:10 am IST

The higher STT applies only to equity futures traded on recognised exchanges. The tax continues to be calculated on the transaction value.

In the Union Budget 2026–27, the government announced targeted increases in the Securities Transaction Tax (STT) on select derivatives transactions. The move aims to curb excessive speculative activity, particularly high-frequency trading. These revised rates will come into force from 1 April 2026.

Updated STT Rates for Derivatives

Instrument / Transaction	Existing STT	Revised STT (from 1 April 2026)	% Increase
Futures (sale)	0.02%	0.05%	+150%
Options (premium sale)	0.10%	0.15%	+50%
Options (exercise)	0.125%	0.15%	+20%

The higher STT applies only to equity futures traded on recognised exchanges. The tax continues to be calculated on the transaction value—based on option premiums for options and traded prices for futures.

Impact on Nifty Index Futures

For illustration, let us assume a Nifty level of 24,800.

One Nifty futures lot comprises 65 units
Total contract value: ₹16.12 lakh

At the existing STT rate of 0.02%, the tax payable per lot stands at approximately ₹322.40. With the revised STT rate of 0.05%, the tax outgo rises to nearly ₹806 per lot, implying an additional cost of ₹481 compared to the earlier regime.

Impact on Bank Nifty Index Futures

The effect of the STT hike becomes even more evident in higher-value contracts such as Bank Nifty futures.

Assumed Bank Nifty level: 52,000
Lot size: 30 units
Total contract value: ₹15.6 lakh

Also Read: Union Budget 2026: How Change in STT Going to Impact Mutual Funds?

Under the previous STT rate of 0.02%, traders paid around ₹312 per contract. Following the revision to 0.05%, the STT payable increases to approximately ₹780 per lot, translating into an incremental burden of ₹468 on a single trade.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 3, 2026, 2:55 PM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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