HRA Exemption Calculator (Metro & Non-Metro)
Find out how much of your house rent allowance is tax-free, using the new FY 2026-27 city list with Bengaluru, Hyderabad, Pune and Ahmedabad at 50%.
Rules applicable for FY 2026-27, last updated 28 Oct 2026
Your HRA exemption
Lowest of these three limits:
HRA exemption applies only under the old tax regime. Compare both regimes with this amount.
Your result explained
"Tax-free HRA" is the part of your house rent allowance you can leave out of your taxable salary if you choose the old tax regime. Enter it as the HRA exemption in our income tax or salary calculator to see the effect on your tax. The check mark shows which of the three limits decided the result; raising the other two will not increase your exemption.
Worked example
Suppose you live in Bengaluru, your basic pay is ₹30,000 a month, you get ₹20,000 a month as HRA and pay ₹30,000 a month in rent. Over the year:
- HRA received: ₹2,40,000
- Rent paid minus 10% of salary: ₹3,60,000 − ₹36,000 = ₹3,24,000
- 50% of salary, because Bengaluru is a listed city from FY 2026-27: ₹1,80,000
The lowest is ₹1,80,000, so that much is tax-free and ₹60,000 is taxable. For FY 2025-26, Bengaluru used the 40% limit, so the exemption would have been ₹1,44,000.
How it is calculated
Exempt HRA = the lowest of:
- HRA actually received for the period;
- rent actually paid − 10% of salary for the period;
- 50% of salary in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad; 40% of salary anywhere else.
Salary means basic pay, dearness allowance that forms part of retirement benefits, and commission at a fixed percentage of turnover. For FY 2026-27 the rule is Schedule III, Table item 11 read with the Income-tax Rules, 2026. Bengaluru, Hyderabad, Pune, Ahmedabad were added to the 50% list from 1 April 2026. Under the new tax regime (section 202 of the Income-tax Act, 2025) the exemption is not allowed.
Frequently asked questions
How is HRA exemption calculated?
The tax-free part of your HRA is the lowest of three amounts: the HRA you actually received, the rent you paid minus 10% of your salary, and 50% of your salary if you live in one of the listed cities (40% elsewhere). Salary here means basic pay plus dearness allowance that counts for retirement benefits, plus any commission fixed as a percentage of turnover. The rest of your HRA is taxable.
Which cities get 50% HRA exemption from FY 2026-27?
From FY 2026-27, under the Income-tax Rules, 2026, the 50% limit applies to Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Until FY 2025-26 it applied only to Delhi, Mumbai, Kolkata and Chennai. All other places use 40%.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption is available only if you choose the old tax regime. Under the new regime your full HRA is taxable, though the new regime has lower slab rates. Use our income tax calculator to see which regime works out cheaper with your HRA.
Can I claim HRA if I pay rent to my parents?
Generally yes, if the arrangement is genuine: you actually pay the rent, your parent owns the house and declares the rent as income in their own return. Keep a rent agreement and proof of payment. Paying rent to your spouse is commonly questioned by the tax department.
Do I need my landlord's PAN to claim HRA?
Employers usually ask for the landlord's PAN when the rent you pay is more than ₹1 lakh a year. Keep rent receipts and the rent agreement in any case, because your employer or the tax department can ask for them.
What if my rent or salary changed during the year?
Work out the exemption separately for each period with the same rent and salary, then add the results. Use the 'Months' field in the calculator for each period. The same applies if you moved to a different city during the year.
I pay rent but do not get HRA. Can I still save tax?
Yes. If HRA is not part of your salary and you choose the old regime, you can claim a separate deduction for rent paid (section 80GG under the Income-tax Act, 1961). It is limited to the lowest of rent paid minus 10% of total income, ₹5,000 a month, and 25% of total income, and you file Form 10BA.
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Disclaimer: This calculator gives an estimate for general information only. It is not professional tax, legal or financial advice, and your actual liability may differ. Please consult a qualified professional before acting on these figures.