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HRA Calculator

Calculate how much of your House Rent Allowance is tax-free under the old tax regime.

₹
₹
₹
Live in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad?
HRA exempt (per year)
₹1,56,000
Taxable HRA (per year)
₹84,000
Limited by
Rent paid minus 10% of salary

Rent − 10% of salary: ₹1,56,000 · 50% of salary: ₹3,00,000

HRA exemption rule

The exempt HRA is the lowest of:

  1. The actual HRA you receive.
  2. Rent paid minus 10% of salary (basic + DA).
  3. 50% of salary if you live in a metro city, otherwise 40%.

What changed for FY 2026-27

Under the Income-tax Rules, 2026, Bengaluru, Hyderabad, Pune and Ahmedabad now get the 50% limit, alongside Mumbai, Delhi, Kolkata and Chennai. Salaried people in these four cities can claim a higher exemption from FY 2026-27.

Example

Basic ₹50,000/month, HRA ₹20,000/month, rent ₹15,000/month in Bengaluru: rent − 10% of salary = ₹1,20,000 a year, 50% of salary = ₹3,00,000 and HRA = ₹2,40,000. The exemption is ₹1,20,000 a year.

Frequently asked questions

Can I claim HRA under the new tax regime?

No. HRA exemption is available only under the old regime. Compare both with our income tax calculator to see which saves more.

Do I need rent receipts?

Yes. Keep rent receipts or an agreement. If yearly rent is above ₹1 lakh, your employer will ask for the landlord's PAN.

Can I claim HRA if I pay rent to my parents?

Generally yes, if you genuinely pay rent, they own the house and they declare it as income. Keep bank transfer records.

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