HRA Calculator

If you get house rent allowance and pay rent, part of the HRA is tax-free under the old tax regime. The exempt part is the lowest of three amounts: the HRA itself, rent minus 10% of basic pay, and 50% or 40% of basic pay depending on the city.

Amounts are
Results update as you type.

HRA exempt from tax

₹2,04,000

for the year; ₹96,000 of HRA stays taxable

HRA received
₹3,00,000
Rent paid − 10% of basic
₹2,04,000
50% of basic
₹3,00,000

HRA exemption is available only in the old tax regime. If rent is over ₹1 lakh a year, give your employer the landlord’s PAN.

About this calculator

From Tax Year 2026-27, the Income-tax Rules, 2026 give the 50% limit to eight cities: Delhi, Mumbai, Kolkata, Chennai, and now also Bengaluru, Hyderabad, Pune and Ahmedabad.

How to use it

  1. Choose monthly or yearly amounts.
  2. Enter basic + DA, HRA received and rent paid.
  3. Choose your city.

The formula

Exempt HRA = least of (HRA received, rent − 10% of basic + DA, 50% or 40% of basic + DA)
basic + DA
basic salary plus dearness allowance (where it counts for retirement benefits)
50% or 40%
50% in the eight listed cities, 40% elsewhere

Worked example

Bengaluru: basic ₹50,000, HRA ₹25,000, rent ₹22,000 a month

  1. Yearly: HRA ₹3,00,000; rent − 10% of basic = 2,64,000 − 60,000 = ₹2,04,000; 50% of basic = ₹3,00,000.
  2. Exempt = ₹2,04,000; ₹96,000 of HRA is taxable.
  3. Before 2026 Bengaluru used 40% (₹2,40,000); here the rent figure is lower anyway, so the city change does not alter this case.

What the result means

HRA exemption is often the rent figure that binds. Paying more rent raises it, up to the other two limits.

Assumptions

  • Old tax regime.
  • You live in rented housing you do not own.

Limitations

  • If rent exceeds ₹1 lakh a year, the landlord’s PAN is required, and the new rules ask you to disclose your relationship to the landlord.
  • HRA is fully taxable in the new regime.

Frequently asked questions

Which cities get 50% HRA from 2026-27?

Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.

Can I claim HRA in the new tax regime?

No. HRA exemption is available only in the old regime.

Can I pay rent to my parents and claim HRA?

Yes, if you genuinely pay rent and they show it as income; the new rules require you to disclose the relationship.

For information only. Tax results depend on the law in force, the tax period and your circumstances, and rates are revised from time to time. This is not tax advice. Please confirm the applicable rate and treatment with a qualified professional or the official notifications.

Last reviewed on 1 October 2026. Found a mistake? Tell us.