Budget 2026 STT Hike: How the 150% Increase in Futures STT Impacts Your Trading Costs (With Calculator)
The Budget 2026 STT hike has quietly but decisively altered the cost structure of derivatives trading in India. Know the details here.
Team Sahi
Budget 2026 STT Hike: How the 150% Increase in Futures STT Impacts Your Trading Costs (With Calculator)
The Budget 2026 STT hike has quietly but decisively altered the cost structure of derivatives trading in India. While most discussions focused on capital gains and compliance updates, active traders felt the real impact elsewhere — a 150% increase in Securities Transaction Tax (STT) on futures trades.
For F&O traders, especially those trading frequently, this change directly affects net profitability, strategy viability, and even instrument choice. Margins that were already thin have become thinner.
- What changed in STT charges on F&O in 2026
- Before vs after cost comparison
- Monthly impact across trading styles
- How traders can offset rising costs
- Practical strategy adjustments
- A simple STT + brokerage impact calculator
What Changed in Budget 2026?
The Union Budget 2026 announced a sharp hike in STT on equity futures while keeping options STT unchanged.
Updated STT Rates (Post Budget 2026)
| Instrument | STT Before | STT After | Change |
|---|---|---|---|
| Equity Futures (Sell side) | 0.01% | 0.025% | +150% |
| Equity Options (Premium) | 0.05% | 0.05% | No change |
| Equity Delivery (Sell) | 0.1% | 0.1% | No change |
- Futures trading just became materially more expensive
- Options trading remains tax-neutral (for now)
Why the STT Hike Hurts More Than It Appears
- Charged on every sell transaction
- Non-refundable
- Applicable even on losing trades
STT is a fixed friction cost. The more you trade, the harder it bites, making the impact most severe for intraday and high-frequency traders.
Before vs After: Futures STT Cost Comparison
Assumptions:
- Nifty Futures contract value: ₹10,00,000
- One round trade (buy + sell)
- STT charged on sell side only
| Scenario | STT Rate | STT Paid |
|---|---|---|
| Before Budget 2026 | 0.01% | ₹100 |
| After Budget 2026 | 0.025% | ₹250 |
| Increase | — | ₹150 per trade |
Monthly Impact of the STT Hike
| Trading Style | Trades / Month | STT Before | STT After | Extra Cost |
|---|---|---|---|---|
| Occasional Trader | 10 | ₹1,000 | ₹2,500 | ₹1,500 |
| Active Trader | 50 | ₹5,000 | ₹12,500 | ₹7,500 |
| Day Trader | 200 | ₹20,000 | ₹50,000 | ₹30,000 |
| High-Frequency Trader | 500 | ₹50,000 | ₹1,25,000 | ₹75,000 |
STT + Brokerage Impact Calculator
Monthly Cost Formula:
(Number of trades × Futures value × 0.025%)
+ (Number of trades × Brokerage per order)
Example:
- Trades/month: 100
- Futures value: ₹10,00,000
- STT: ₹25,000
- Brokerage: ₹20 broker = ₹2,000 | ₹10 broker = ₹1,000
Sahi cuts your brokerage costs in half. At just ₹10 per trade, active traders typically save ₹1,000 or more monthly compared to standard brokerage rates.
Who Is Most Affected by the STT Hike?
- High impact: Intraday futures traders, scalpers, algo traders
- Moderate impact: Swing and positional futures traders
- Low impact: Options traders and long-term investors
Final Takeaway: Adapt Smartly, Don’t Ignore Costs
Budget 2026 has made trading more expensive, particularly in futures. While taxes cannot be avoided, optimizing controllable costs like brokerage can help traders retain more of their returns in a higher-cost market.
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