HRA Exemption Calculator (FY 2026-27)
Find how much of your house rent allowance is tax-free under the old tax regime. With basic pay of ₹30,000, HRA of ₹15,000 and rent of ₹18,000 a month in Bengaluru, ₹1,80,000 a year of HRA is exempt; in a city not on the list, ₹1,44,000 is.
Tax-free HRA for the year
—
| For the year | Amount |
|---|---|
| HRA received | |
| Taxable HRA |
The 50% limit applies in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad from FY 2026-27 (1 April 2026). Up to FY 2025-26 it applied only in Delhi, Mumbai, Kolkata and Chennai.
Worked example: listed city and another city
Basic pay ₹30,000 a month (no DA), HRA ₹15,000 a month, rent ₹18,000 a month, for 12 months.
| For the year | Listed city | Another city |
|---|---|---|
| 1. HRA received | ₹1,80,000 | ₹1,80,000 |
| 2. Rent ₹2,16,000 − 10% of basic ₹3,60,000 | ₹1,80,000 | ₹1,80,000 |
| 3. 50% / 40% of basic | ₹1,80,000 | ₹1,44,000 |
| Tax-free HRA (least of 1–3) | ₹1,80,000 | ₹1,44,000 |
| Taxable HRA | ₹0 | ₹36,000 |
How it's calculated
Under the old tax regime, the tax-free part of HRA for the year is the least of:
- The HRA you actually received.
- The rent you paid, minus 10% of your salary (basic pay plus dearness allowance).
- 50% of your salary if you rent in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad; 40% anywhere else.
The rest of your HRA is taxed as salary. All three are worked out for the months you paid rent. The list of 8 cities comes from the Income-tax Rules, 2026, in force from 1 April 2026 (FY 2026-27); earlier years used Delhi, Mumbai, Kolkata and Chennai only. Under the new tax regime there is no HRA exemption.
Tip: employers usually ask for your landlord's PAN when the rent is more than ₹1 lakh a year.