HRA Exemption Calculator

Work out how much of your house rent allowance is tax-free. The exemption is the lowest of three amounts, and from 1 April 2026 the 50% rate applies to eight cities instead of four.

Bengaluru is on the 50% list from 1 April 2026 under the Income-tax Rules 2026. For rent paid before that date, the older four-city list applies (change the date above).

Your HRA exemption

The exemption is the lowest of these three, for the 12 months:

1. HRA you actually receive₹3,00,000
2. Rent paid minus 10% of basic + DA₹2,04,000
3. 50% of basic + DA (metro city)₹3,00,000
Exempt from tax₹2,04,000
HRA that stays taxable₹96,000

The limit here is rent paid minus 10% of salary.

Rent above ₹1 lakh a year: your landlord's PAN is needed to claim HRA.
HRA exemption is available only in the old tax regime. In the new regime the whole HRA is taxable. Use the salary calculator to see which regime leaves you more in hand.

Rates and limits are those for FY 2026-27 (tax year 2026-27 under the Income-tax Act 2025), checked on 17 October 2026: slabs as in the Union Budget 2026 (unchanged). Section numbers such as 44AD, 44ADA, 87A and 80C are the familiar Income-tax Act 1961 numbers; the 2025 Act, in force from 1 April 2026, renumbers them. Figures assume the taxpayer is under 60 (senior citizens have higher old-regime limits). The eight-city 50% list (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) is from the Income-tax Rules 2026, rule 279; confirm the final notification if your claim depends on it. This is a calculator, not tax advice. Your facts may differ, so confirm anything you file with your CA.

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Frequently asked questions

How is the HRA exemption calculated?

It is the lowest of: the HRA you actually receive; the rent you pay minus 10% of basic salary plus dearness allowance; and 50% of basic plus DA in a metro city (40% elsewhere).

Which cities count as metro for HRA?

Delhi, Mumbai, Kolkata and Chennai have always counted. From 1 April 2026, the Income-tax Rules 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad. For rent paid before that date, the four-city list applies.

Can I claim HRA in the new tax regime?

No. HRA exemption is available only in the old regime. In the new regime the whole HRA is added to your taxable salary.

Do I need my landlord's PAN?

If the rent you pay is more than ₹1 lakh in the year, yes: you must give your employer the landlord's PAN. You also need rent receipts or a rent agreement as proof.

Can I claim HRA if I live in my parents' house?

You can if you actually pay them rent by a traceable method and they declare it as their income. Rent to a spouse is not accepted.

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