HRA Calculator
Calculate how much of your House Rent Allowance is tax-free under the old tax regime. Enter monthly amounts; the calculator applies the three-limit rule and the correct 50% or 40% city rate for the year you choose.
Exempt HRA (per year)
How to use the HRA Calculator
- Choose the financial year and the city where you live on rent.
- Enter your monthly basic salary and any DA that counts for retirement benefits.
- Enter the HRA shown in your salary slip and the rent you pay.
- Read the exempt HRA, taxable HRA and which of the three limits applied.
HRA exemption formula
Worked example
Bengaluru, basic ₹50,000, HRA ₹25,000, rent ₹30,000 a month
Yearly: HRA ₹3,00,000; 50% of basic ₹3,00,000; rent − 10% of basic = 3,60,000 − 60,000 = ₹3,00,000
FY 2026-27 exempt HRA = ₹3,00,000 (fully tax-free)
FY 2025-26 (Bengaluru at 40%) exempt HRA = ₹2,40,000, so ₹60,000 was taxable
What changed from FY 2026-27
From 1 April 2026, the new Income-tax Rules extend the 50% rate, earlier limited to Delhi, Mumbai, Chennai and Kolkata, to Bengaluru, Pune, Hyderabad and Ahmedabad. Salaried renters in these four cities can now claim a larger exemption. Every other city still uses 40%. For returns of FY 2025-26 (filed in 2026), the old four-metro rule applies.
Old vs new tax regime
HRA exemption is available only under the old tax regime. Under the new regime, HRA is fully taxable, but slab rates are lower and the standard deduction is higher. If your exempt HRA plus other deductions (80C, home loan interest) is large, the old regime may still save more tax — compare both before choosing.
Tips and documents
- Submit rent receipts to your employer; if annual rent exceeds ₹1 lakh, the landlord's PAN is required.
- Paying rent to parents is allowed if they own the house and declare the rent as income; paying your spouse is generally not accepted.
- If you live in your own house, you cannot claim HRA exemption.
- No HRA in salary? Self-employed or those without HRA may claim a deduction under the old regime's Section 80GG, subject to limits.
Frequently Asked Questions
From FY 2026-27: Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad and Ahmedabad. Other cities get 40%.
No. HRA exemption is available only under the old tax regime.
Yes, when the rent paid exceeds ₹1 lakh in a year.
Basic salary plus dearness allowance that forms part of retirement benefits, plus any turnover-based commission.
Yes, if you live on rent in one city and own a house elsewhere, or have valid reasons for not living in your own house.
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Content reviewed by Vinod, Easy Smart Calculator · Last updated October 2026