HRA Exemption Calculator

From FY 2026-27 the Income-tax Rules, 2026 treat eight cities as metros for HRA, up from four. Enter your monthly basic + DA, HRA and rent to see the exempt and taxable parts of your HRA for the year.

Updated for the 8-city 50% HRA rule from FY 2026-27.Calculated in your browser. The amounts you enter are never sent to us or stored.
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Quick answer

Exempt HRA is the lowest of: (1) HRA actually received, (2) rent paid minus 10% of salary, and (3) 50% of salary in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad, or 40% elsewhere. Salary here means basic + DA. The exemption is only available under the old tax regime.

How to use the HRA Exemption Calculator

  1. Enter your monthly basic salary plus DA.
  2. Enter the HRA you receive each month.
  3. Enter the rent you pay each month.
  4. Choose your city and read the exempt HRA.

Worked example

Basic ₹50,000, HRA ₹20,000, rent ₹25,000 a month in Pune: limits are ₹2,40,000, ₹2,40,000 and ₹3,00,000, so ₹2,40,000 a year is exempt.

Formula

Exempt HRA = min( HRA received, Rent − 10% × Salary, 50% or 40% × Salary )

Frequently asked questions

Can I claim HRA in the new regime?

No. HRA exemption is available only if you choose the old regime.

Which cities get 50%?

From FY 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. For FY 2025-26 returns only the first four count.

Do I need rent receipts?

Yes, keep receipts or a rent agreement. If yearly rent exceeds ₹1 lakh your employer will ask for the landlord's PAN.

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Last reviewed by Basant Upadhyay.

Results are estimates for general information and are not tax, legal or financial advice. Rates and rules change; confirm with a chartered accountant or your lender before acting. Disclaimer.

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