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Income Tax · Updated for tax year 2026-27

HRA Exemption Calculator

Under Schedule III, S. No. 11 (old sec. 10(13A)), the tax-free part of HRA is the lowest of three amounts: the HRA you actually received, rent paid minus 10% of salary, and 50% of salary (40% outside the eight listed cities). From tax year 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad get the 50% limit along with Delhi, Mumbai, Kolkata and Chennai. HRA exemption is available only in the old tax regime.

Enter your details

Values you enterComputed values
City

Result

(a) Actual HRA received₹2,40,000(b) Rent − 10% of salary₹1,80,000(c) 50% of salary₹3,00,000Exempt HRA (lowest)₹1,80,000Taxable HRA₹60,000

Monthly exempt HRA: ₹15,000. Only in the old tax regime.

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (28 Sep 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 28 Sep 2026.

How to use the HRA Exemption Calculator

  1. 1

    Enter your annual basic salary and any dearness allowance (DA) that counts for retirement benefits.

  2. 2

    Enter the HRA you received for the year and the rent you actually paid.

  3. 3

    Choose whether you live in one of the eight 50% cities.

  4. 4

    The calculator shows each of the three limits, your exempt HRA and the part that is taxable.

HRA exemption formula

Salary = Basic + DA (forming part of retirement benefits) + commission as a fixed % of turnover

Exempt HRA = least of:

(a) Actual HRA received

(b) Rent paid − 10% of salary

(c) 50% of salary (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) or 40% elsewhere

Taxable HRA = HRA received − Exempt HRA

Work it out month by month if your rent, salary or city changed during the year — the limits apply to the period for which you paid rent.

Worked example: renting in Bengaluru

  • Basic salary ₹6,00,000 a year, HRA received ₹2,40,000, rent paid ₹2,40,000 (₹20,000 a month).
  • (a) Actual HRA = ₹2,40,000. (b) Rent − 10% of salary = ₹2,40,000 − ₹60,000 = ₹1,80,000. (c) 50% of salary = ₹3,00,000.
  • Exempt HRA is the lowest, ₹1,80,000; the remaining ₹60,000 is taxable. Before tax year 2026-27, Bengaluru was capped at 40% (₹2,40,000), which would not have changed the answer here.

Documents you need to claim HRA

Your employer applies the exemption through payroll if you submit proof on time. Keep:

  • Rent receipts or the rent agreement for the period.
  • Landlord’s PAN if the annual rent is more than ₹1 lakh.
  • Bank transfer records, which are the strongest evidence of rent actually paid.

Claiming HRA without an employer’s help

If you missed your employer’s deadline, claim the exemption directly in your income tax return under the old regime. Self-employed people and salaried people who get no HRA cannot use this exemption, but may claim the separate deduction for rent paid under Section 80GG (1961 Act) in the old regime.

Frequently asked questions

Eight cities get the 50% limit from tax year 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All other places get 40%.