HRA in the New Tax Regime 2026: Can You Still Claim It?

Short answer: no. HRA exemption under Section 10(13A) is available only in the old tax regime, so if you stay in the new regime you give it up entirely. The better question is how much HRA exemption you would need to make the old regime worth it. Below: the FY 2026-27 formula (with the new 50% city list), the arithmetic at ₹15, ₹20 and ₹25 lakh salaries, and what to do if your employer pays no HRA.

How HRA Exemption Is Calculated for FY 2026-27

The exempt amount is the least of three figures: the HRA actually received, rent paid minus 10% of salary, and 50% of salary in the listed cities or 40% elsewhere. For this purpose salary means basic pay plus dearness allowance where the terms of employment provide for it. Other allowances and perquisites are excluded, and only the months you actually occupied the rented home count.

From 1 April 2026 the 50% list is Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Earlier only the first four qualified. The extra four matter only when the percentage cap is the binding figure, as the example shows. For the full method, see the least-of-three explainer and the new cities rule.

Why HRA Alone Rarely Tips the Choice

The new vs old regime guide shows the new regime is tax-free up to ₹12.75 lakh of salary, and that the old regime needs total deductions of about ₹5.44 lakh at ₹15 lakh, ₹7.09 lakh at ₹20 lakh and ₹8 lakh at ₹25 lakh. HRA is the biggest single deduction for many renters, but it still has to be stacked with others. The table builds that stack for a ₹15 lakh salary.

Even with HRA and four other deductions, the old regime ties the new one only at the last step. Now flip the question: how much HRA exemption do you need if you already claim 80C ₹1.5 lakh, 80D ₹25,000 and NPS ₹50,000, a ₹2.25 lakh stack?

No HRA in Your Salary? Section 80GG

If you pay rent but receive no HRA, Section 80GG may help, again in the old regime only. The deduction is the least of ₹5,000 a month (₹60,000 a year), 25% of your total income before this deduction, and rent paid minus 10% of that income. You must file Form 10BA before your return, and the section bars the claim if you, your spouse or minor child own residential accommodation in the circumstances it lists. Note that the ₹1 lakh rent figure relates to landlord PAN, not to 80GG eligibility. See the 80GG guide.

What to Keep Ready if You Claim HRA

• The employee claims statement under the 2026 Rules (Form 124) asks for the landlord's name, address, PAN, Aadhaar and relationship, plus the rent paid. PAN is required if total rent in the tax year exceeds ₹1 lakh.
• If you pay rent to a parent, see house rent paid to parents for how it is treated.
• Keep rent receipts or bank transfer records and the rent agreement, in case your employer or the department asks for proof.
• Leave Travel Allowance has the same old-regime-only limit; see the LTA rules.

Decision Map

• Gross up to ₹12.75 lakh: new regime, with zero tax. HRA cannot beat that.
• ₹15 to ₹25 lakh with modest rent or no home loan: new regime.
• High rent in a listed city, plus full 80C, 80D and NPS: run both regimes; this is the one group where the old regime can win. The salaried regime guide has a worked case.
• Rent but no HRA component, or income well below ₹12.75 lakh: 80GG is small and rarely changes the choice.