HRA Exemption Calculator India FY 2026-27 (8 metro cities)
Calculate your HRA exemption in India for FY 2026-27 under the old tax regime: the least of HRA received, 50% or 40% of salary and rent minus 10% of salary.
HRA exemption is only available in the old tax regime. If the rent is above ₹1 lakh a year you need the landlord's PAN. Salary means basic + DA.
What it does
House Rent Allowance (HRA) paid by an employer is partly tax-free for an employee who lives in rented housing and opts for the old tax regime. The exempt part is the least of three amounts: the HRA actually received, 50% of salary in a metro city or 40% elsewhere, and the rent paid minus 10% of salary. From FY 2026-27 the Income-tax Rules, 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad to the 50% list with Delhi, Mumbai, Chennai and Kolkata.
How to use it
- Type the monthly basic + DA and the HRA you receive.
- Type the monthly rent and choose the city.
- Read the three limits and the exempt and taxable HRA.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much HRA is exempt with a basic of ₹50,000 in Mumbai?
With ₹20,000 of HRA and ₹25,000 of rent the limits are ₹20,000, ₹25,000 and ₹20,000: the whole HRA, ₹2,40,000 a year, is exempt.
Why is only part of my HRA exempt?
Usually because the rent is low: with ₹15,000 of rent and a basic of ₹50,000, rent minus 10% is ₹10,000 a month, so ₹1,20,000 of a ₹2,40,000 HRA stays taxable.
Can I claim HRA in the new tax regime?
No. The new regime has lower slabs but no HRA exemption; compare both regimes for your salary before choosing.
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