HRA exemption calculator
Find how much of your house rent allowance is tax-free under the old regime, and which limit decides it.
An HRA calculator finds the tax-free part of your HRA under the old regime: the lowest of the HRA you get, rent minus 10% of salary, and 50% or 40% of salary. With ₹6,00,000 salary, ₹3,00,000 HRA and ₹2,64,000 rent a year in Bengaluru, ₹2,04,000 is tax-free.
Tax-free HRA a year (old regime only)
₹2,04,000 a year · ₹17,000 a month
Rupees two lakh four thousand only
| HRA you receive | ₹3,00,000 |
|---|---|
| Rent paid − 10% of salary Lowest | ₹2,04,000 |
| 50% of salary (metro) | ₹3,00,000 |
| Taxable HRA | ₹96,000 |
The rent limit decides your exemption. Under the new regime, all ₹3,00,000 of HRA is taxable.
Use this in the income tax calculatorEstimate using the old regime rules for FY 2026-27. Nothing you type is stored.
Not sure the old regime suits you? Compare both regimes with the income tax calculator.
How to use this HRA calculator
- Choose whether you will type yearly or monthly amounts. Your payslip shows monthly figures.
- Enter your basic pay plus DA (dearness allowance). Leave out other allowances and bonus.
- Enter the HRA your employer pays you and the rent you pay.
- Pick metro if you live in one of the 8 metro cities. The card shows your tax-free HRA and which of the three limits set it.
HRA exemption formula
Tax-free HRA = lowest of (H, R − 10% of S, 50% or 40% of S)
- H
- The HRA your employer pays you in the year.
- R
- The rent you actually pay in the year.
- S
- Salary for HRA: basic pay plus DA only.
Use 50% of salary if you live in a metro city, and 40% anywhere else. If your rent is less than 10% of your salary, nothing is tax-free. The HRA left over after the exemption is added to your taxable salary. This exemption exists only in the old tax regime.
Worked example
Priya lives in Bengaluru. Her basic pay plus DA is ₹6,00,000 a year. She gets ₹3,00,000 HRA and pays ₹22,000 a month rent, which is ₹2,64,000 a year.
- HRA received
- ₹3,00,000
- Rent − 10% of salary
- ₹2,04,000
- 50% of salary
- ₹3,00,000
- Tax-free HRA
- ₹2,04,000
The rent limit is the lowest, so ₹2,04,000 is tax-free. The other ₹96,000 of HRA is taxed as salary.
4-city vs 8-city: what the new metro list changes
Under the old rules (Rule 2A), only Mumbai, Delhi, Kolkata and Chennai counted as metro. For FY 2026-27, Rule 279 also lists Bengaluru, Hyderabad, Pune and Ahmedabad. People in those four cities now get the 50% limit instead of 40%.
Take Priya again, but say she pays ₹30,000 a month (₹3,60,000 a year). Rent − 10% of salary is now ₹3,00,000.
- Before: 40% limit
- ₹2,40,000 tax-free
- Now: 50% limit
- ₹3,00,000 tax-free
That is ₹60,000 more HRA free of tax each year. The change only helps when the 40% limit was the lowest of the three. In the first example, the rent limit was lowest, so the new list made no difference.
Tax-free HRA at common rents
Basic pay plus DA ₹50,000 a month and HRA ₹25,000 a month. Figures are a year.
| Rent a month | Metro | Non-metro |
|---|---|---|
| ₹10,000 | ₹60,000 | ₹60,000 |
| ₹15,000 | ₹1,20,000 | ₹1,20,000 |
| ₹20,000 | ₹1,80,000 | ₹1,80,000 |
| ₹25,000 | ₹2,40,000 | ₹2,40,000 |
| ₹30,000 | ₹3,00,000 | ₹2,40,000 |
Below a point, each extra ₹1 of rent adds ₹1 of tax-free HRA. After that, the city limit or the HRA you receive caps it.
Rules this calculator uses
- Tax-free HRA is the lowest of the three limits above. Salary means basic pay plus DA. Source: Income-tax Rules 2026, Rule 279.
- Metro (50%) for FY 2026-27: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Other cities: 40%.
- Old regime only. HRA gives no exemption under the new regime, which is now the default.
HRA calculator FAQs
Which cities are metro for HRA now?
For FY 2026-27, eight cities get the 50% limit: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Every other city uses 40%.
Can I claim HRA in the new tax regime?
No. HRA gives no exemption under the new regime, so all of it is taxed. Use the income tax calculator to see which regime leaves you with less tax.
What counts as salary for HRA?
Only basic pay plus DA (dearness allowance). Leave out HRA itself, special allowance, bonus and other perks.
Why is my tax-free HRA zero?
If your rent is 10% of your salary or less, the rent limit is ₹0. So nothing is tax-free. You also get nothing if you pay no rent.
Can I pay rent to my parents and claim HRA?
Usually allowed if the parent owns the house, the rent is real and paid traceably, and the parent shows it as income. No rule spells this out, so check with a CA for your case.
Do I need my landlord's PAN?
Your employer needs your landlord's PAN if the rent you pay is more than ₹1 lakh a year (Form 12BB). Keep rent receipts too.
Is my data saved?
No. Everything is calculated in your browser. Nothing you type is sent to us or stored. Your numbers go only into the link you choose to copy or share.
For education only, not tax advice. Based on rules for FY 2026-27. Check with a CA or the Income Tax Department before you file.