HRA vs New Regime Calculator
Compute your Section 10(13A) HRA exemption and see whether the old regime (with HRA, 80C, 80D) or the new regime saves you more tax — live, on one screen.
- Free — no sign-up
- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
Old vs New — side-by-side
FY 2026-27 · AY 2027-28| Particulars | Old regime (with HRA) | New regime |
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Disclaimer: Indicative estimate for salaried resident individuals below 60. HRA exemption assumes you live in rented accommodation and pay the rent shown. Actual tax may vary with other income, exemptions and special-rate income. Rates per Finance Act 2025.
HRA exemption under Section 10(13A)
If you pay rent and receive a House Rent Allowance, part of that HRA is exempt from tax — but only under the old regime. The exemption is the least of three figures, so a low actual HRA or low rent will cap what you can claim. The new regime gives no HRA exemption at all; it trades every deduction for lower slab rates.
| Actual HRA received | As per salary |
| Rent paid − 10% of basic | Rent − 10% basic |
| 50% of basic (metro) / 40% (non-metro) | 50% / 40% |
| Large HRA + 80C + home loan | Old wins |
| Few deductions / no rent | New wins |
| Default regime (if you do nothing) | New |
Income tax slabs — FY 2026-27
The old regime keeps HRA, 80C and 80D but has higher rates; the new regime has seven revised bands from 0% to 30% and a bigger standard deduction, but no HRA or Chapter VI-A deductions.
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Worked example — ₹15L salary, metro
Gross salary ₹15,00,000, basic ₹7,50,000, HRA received ₹3,00,000, rent paid ₹2,40,000, living in a metro city, with ₹1,50,000 in 80C and ₹25,000 in 80D. Here is every step, exactly as the calculator computes it.
Key terms explained
HRA exemption — 10(13A)
The tax-free slice of your House Rent Allowance. It is the least of actual HRA, rent minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic. Available only in the old regime, and only if you actually pay rent.
Standard deduction
A flat deduction from salary — ₹75,000 in the new regime and ₹50,000 in the old regime for FY 2026-27. No proof needed; it applies automatically to salary and pension income.
Section 87A rebate
Makes tax nil for lower incomes — up to ₹12,00,000 taxable in the new regime and up to ₹5,00,000 in the old regime. If your taxable income is at or below the limit, your tax before cess becomes zero.
Health & education cess
A flat 4% charged on the tax amount in both regimes. It funds health and education programmes and is added after the 87A rebate, so a zero-tax return also has zero cess.
Questions people ask
Short answers on HRA: Old vs New Regime. Tap a question to open it.
01Can I claim HRA under the new tax regime?
No. The house rent allowance exemption under section 10(13A) is one of the exemptions withdrawn under the new regime. If HRA is a large part of your package and you actually pay rent, that is a strong argument for the old regime.
02How is the HRA exemption calculated?
It is the least of three: the actual HRA received; rent paid minus 10% of salary; and 50% of salary if you live in Delhi, Mumbai, Kolkata or Chennai, or 40% elsewhere. Salary here means basic plus dearness allowance forming part of retirement benefits, plus commission on turnover.
03Which regime should I choose if I pay high rent?
Compute both. The new regime's lower rates and ₹75,000 standard deduction often still win for moderate salaries, but a large HRA exemption combined with 80C, 80D and home-loan interest usually tips the balance to the old regime.
04Can I switch regimes every year?
A salaried person with no business income can choose afresh each year at the time of filing, regardless of what was declared to the employer. Someone with business or professional income can opt out of the new regime only once and return to it only once.
05Do I need the landlord's PAN?
Yes, if the rent you pay exceeds ₹1 lakh in the financial year. Without it, the employer will not allow the exemption while computing TDS, though you can still claim it in your return with proper evidence.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.