HRA Exemption Calculator
How much house rent allowance is tax-free for 2026-27, with the eight 50% cities.
Tax-free HRA for the year
- HRA received
- ₹2,40,000
- Rent − 10% of salary
- ₹1,56,000
- 50% of salary
- ₹3,00,000
- Taxable HRA
- ₹84,000
- The exemption is the least of the three figures above, and it applies only under the old tax regime.
- Rent above ₹1,00,000 a year needs your landlord’s PAN when you claim it.
Your salary and rent (a month)
How is this calculated?
Exempt HRA = the least of:
1. HRA actually received
2. Rent paid − 10% of salary
3. 50% of salary (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) or 40% elsewhere
Salary = basic + DA (where it counts for retirement benefits) + commission at a fixed % of turnoverRuns in your browser — nothing you enter leaves this device.
An estimate for tax year 2026-27 under the old regime. Your employer or tax adviser has the final figure. Not tax advice.
About this tool
What it does
House rent allowance is partly tax-free if you pay rent for the home you live in. This calculator works out how much of your HRA is exempt for tax year 2026-27 under the old tax regime, and how much is still taxed. It shows all three limits the law compares, and which one decided your answer, so you can see what would change it. It uses the city list in the Income-tax Rules, 2026, which added Bengaluru, Hyderabad, Pune and Ahmedabad to the 50% cities.
How to use it
- Enter your monthly basic pay plus dearness allowance. This is “salary” for HRA purposes, not your total pay.
- Enter the HRA your employer pays you each month.
- Enter the rent you pay each month.
- Choose your city. Eight cities use 50% of salary and every other city uses 40%.
- Read the yearly exemption, the taxable HRA and the three figures it was chosen from.
Limits and your data
- The new tax regime allows no HRA exemption. If you are in the new regime, all of your HRA is taxable and this result does not apply.
- It assumes the same salary, HRA and rent every month of the year. If any of them changed during the year, work out each period separately.
- You cannot claim HRA for a home you own and live in. Paying rent to a relative is allowed only if it is genuine and the relative declares it as income.
- Someone with no HRA in their salary may be able to claim a separate deduction for rent. That is not covered here.
- Your salary and rent stay in your browser; nothing is sent anywhere. The amounts appear in the page address so the result can be revisited, so avoid sharing that link if you want your pay kept private.
Questions
Which cities get the 50% limit now?
From 1 April 2026 (tax year 2026-27), eight: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. The Income-tax Rules, 2026 added the last four; before that only the first four were on the list.
Can I claim HRA under the new regime?
No. The HRA exemption is available only if you choose the old regime. Under the new regime the whole allowance is taxed.
Why is my exemption zero?
Usually because your rent is less than 10% of your salary. That makes the second limit zero, and the exemption is the smallest of the three figures.
What proof do I need?
Rent receipts or an agreement. If the rent is more than ₹1,00,000 in the year, you also need your landlord’s PAN.