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HRA exemption calculator

Find out how much of your house rent allowance is tax-free.

50% limit applies in: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.

Amounts are
₹

₹50,000 (50 thousand) · Include DA only if it counts for retirement benefits

₹

₹20,000 (20 thousand)

₹

₹18,000 (18 thousand)

Tax-free HRA (old regime)

₹1,56,000 a year

₹13,000 a month · taxable HRA ₹84,000 a year

The exemption is the lowest of these three

Actual HRA received
₹2,40,000
✓ Rent paid minus 10% of basic + DA
₹1,56,000
40% of basic + DA (other city)
₹2,40,000

Section 10(13A) rules with the city list from the Income-tax Rules 2026 (checked 7 October 2026). HRA exemption is available only in the old tax regime. Enter the result in the income tax calculator to compare regimes.

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How to calculate your HRA exemption

  1. 1

    Choose the year and the city you live in.

  2. 2

    Enter your basic salary plus DA, the HRA you receive and the rent you pay, for the year or per month.

  3. 3

    See the exempt and taxable HRA, with the three limits the law compares.

How the HRA exemption works

If you live in rented housing and get house rent allowance, part of it is tax-free under section 10(13A) in the old regime. The exempt amount is the lowest of:

A house rent allowance calculator updated for HRA exemption 2026-27.

  1. The HRA you actually received.
  2. Rent paid minus 10% of your basic salary plus DA.
  3. 50% of basic + DA in the listed cities, or 40% elsewhere.

The calculator shows all three and ticks the one that applies, so you can see what limits your exemption. Often paying a little more rent, or a change in basic pay, moves the lowest limit.

Eight cities from 2026-27

Until FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai counted for the 50% limit. The Income-tax Rules 2026, which apply from Tax Year 2026-27, add Bengaluru, Hyderabad, Pune and Ahmedabad. If you live in one of these four cities, choose the year to see the difference: it can raise your tax-free HRA noticeably.

Monthly or yearly figures

Enter amounts per month (as on your payslip) or per year. If your rent or salary changed during the year, enter yearly totals for the most accurate result, since the law applies the limits to the period you actually paid rent.

Tips

  • Keep rent receipts. Your employer needs the landlord’s PAN if rent is above ₹1 lakh a year. Atifo’s rent receipt generator makes printable receipts.
  • Paying rent to parents is allowed if they own the house and declare the rent as income.
  • You can’t claim HRA in the new regime. Enter the exempt amount in the income tax calculator to see which regime is better for you.

Rules checked 7 October 2026. This is an estimate for planning and declarations, not tax advice.

Frequently asked questions

How is HRA exemption calculated?

The exempt amount is the lowest of three: the HRA you actually received, rent paid minus 10% of basic + DA, and 50% of basic + DA in the listed cities (40% elsewhere). The rest of your HRA is taxable.

Which cities get the 50% limit?

Up to FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai. From Tax Year 2026-27 the Income-tax Rules 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad, making eight cities.

Can I claim HRA in the new regime?

No. HRA exemption is only available in the old regime. In the new regime the whole HRA is taxable.

Do I need my landlord’s PAN?

Your employer will ask for the landlord’s PAN if the rent is more than ₹1 lakh a year. Keep rent receipts as proof.

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