Is HRA available under new tax regime?

No. HRA exemption is only available under the old tax regime. Under the new tax regime, HRA is fully taxable as salary income.

HRA Calculator 2026

Q: How is HRA exemption calculated?

HRA exemption = Minimum of (1) Actual HRA received, (2) 50% of basic salary for metro or 40% for non-metro, (3) Rent paid minus 10% of basic salary.

About the Hra Calculator

This calculator is designed specifically for Indian investors and taxpayers using 2026 rules and regulations. All formulas follow official government guidelines and are updated annually. Results are instant and no data leaves your browser.

How the Calculation Works

The Hra calculator uses the exact mathematical formula prescribed for this financial product in India. Enter your inputs and the result updates instantly. All calculations account for the current rates applicable for FY 2025-26.

How to Use This Calculator Effectively

Start with your base scenario — your current numbers. Then adjust variables to see how changes affect the outcome. For investment calculators, try different return rates to understand the range of possible outcomes. For tax calculators, compare old vs new regime to find your optimal strategy. For loan calculators, adjust tenure and down payment to find the affordable EMI range for your income.

Why Accurate Calculation Matters

Most financial mistakes in India stem from not calculating the true cost or benefit of a decision. An EMI that seems affordable often becomes a trap when combined with other obligations. A tax saving that sounds large may be smaller after accounting for lock-in. A return that appears impressive may be eroded by inflation. Using accurate calculators before committing to financial decisions is the single highest-return habit of financially successful Indians. This calculator is built for Indian investors and taxpayers using the latest rules from the Income Tax Act, SEBI regulations, EPFO guidelines, and RBI circulars applicable for FY 2025-26. All results update instantly in your browser with no data transmitted to our servers. Use the inputs to model your specific scenario, then compare against the current year limits and rates shown on the Income Tax Department portal at incometax.gov.in. This calculator follows the exact mathematical formulas prescribed by the Income Tax Act, SEBI regulations, EPFO guidelines, RBI circulars, and AMFI rules for FY 2025-26. Results update instantly in your browser. No data is stored or transmitted. Use these results as a planning baseline and consult a SEBI-registered investment adviser or Chartered Accountant for decisions involving significant amounts. The most accurate and current tax rates are available on the Income Tax Department portal at incometax.gov.in and the GST portal at gst.gov.in.

HRA Exemption — Everything Explained

How is HRA exemption calculated?+

HRA exemption is the MINIMUM of three limits: (1) Actual HRA received from employer, (2) 50% of Basic Salary for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro, (3) Rent paid minus 10% of Basic Salary. The lowest of these three is your tax-exempt HRA. The remaining HRA above this exemption is taxable as salary income.

Can I claim HRA if I pay rent to my parents?+

Yes, you can pay rent to parents and claim HRA exemption — but with conditions: (1) Your parents must own the property, (2) A proper rent agreement must exist, (3) Your parents must show rental income in their ITR, (4) TDS applies if rent exceeds ₹50,000/month. This is legal and widely used for tax planning, but must be genuine and documented.

Is HRA available under the new tax regime?+

No. HRA exemption is available only under the old tax regime. Under the new tax regime (which is now the default), HRA is fully taxable. This is one of the biggest reasons why the old regime may be better for employees paying high rent. Use our Income Tax Calculator to compare both regimes for your specific situation.

Do I need to submit rent receipts to claim HRA?+

Rent receipts are required when rent exceeds ₹1 lakh per year (₹8,333/month). The landlord's PAN is mandatory if annual rent exceeds ₹1 lakh. For rent below ₹1 lakh/year, self-declaration to your employer is sufficient. Keep rent receipts for 6 years in case of tax scrutiny.