HRA Exemption Calculator: Tax-Free HRA for FY 2026-27
Enter your monthly basic + DA, the HRA you get and the rent you pay. You see the exempt amount for the year and which rule limits it.
- Nothing you type is stored
- Free
- No signup
Tax-free HRA
₹1,56,000for the period
Limited by rent − 10%- Taxable HRA
- ₹84,000
- HRA received
- ₹2,40,000
- Rent − 10% of basic
- ₹1,56,000
- Share of basic
- ₹3,00,000 50%
FY 2026-27 rules, estimate. Not tax advice: check with a CA before you file or invest.
Counts only in the old regime. Rent above ₹1 lakh a year: your employer needs the landlord's PAN.
How to use
- Enter your monthly basic + DA and the HRA shown on your payslip.
- Enter the rent you actually pay each month and pick your city type.
- Change the months if you rented for only part of the year.
Good to know
The exemption is the lowest of three amounts: (1) HRA actually received, (2) rent paid minus 10% of salary, and (3) 50% of salary if you live in one of the listed cities, otherwise 40%. "Salary" here means basic + dearness allowance (where it counts for retirement benefits) + any commission fixed as a percentage of turnover.
From 1 April 2026 the Income-tax Rules, 2026 (notified by CBDT on 20 March 2026 under the Income-tax Act, 2025) list eight cities for the 50% limit: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Earlier only the first four counted. We took the city list from published summaries of the rules (EY, ClearTax), checked on 27 Oct 2026; confirm it with your CA.
HRA exemption is available only in the old tax regime. In the new regime the whole HRA is taxable. If your yearly rent is above ₹1 lakh, your employer needs your landlord's PAN. Living in your own house or paying rent to your spouse does not qualify. This page is waiting for a CA review, so treat the result as an estimate.
Questions
Can I claim HRA in the new tax regime?
No. HRA exemption is only in the old regime. Use the income tax calculator to see which regime is better once HRA is counted.
Which cities get 50% HRA from April 2026?
Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad, as reported from the Income-tax Rules, 2026. Everywhere else the limit is 40% of salary.
What if my rent is less than 10% of my basic?
Then the "rent minus 10%" amount is zero and none of your HRA is exempt.
Can I pay rent to my parents and claim HRA?
Yes, if you really pay them rent, they own the house and they show the rent as income. Paying rent to your spouse is generally not accepted.
Do I need rent receipts?
Employers usually ask for rent receipts or an agreement, and the landlord's PAN when yearly rent crosses ₹1 lakh. Keep proof of payments such as bank transfers.