I Help You

HRA Exemption Calculator

How much of your house rent allowance is tax-free under the old regime, with all three limits shown.

₹5,000₹50,000₹5,00,000
₹0₹25,000₹2,50,000
₹0₹20,000₹3,00,000

50% cities from FY 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.

Tax-free HRA (yearly)
₹1,80,000
₹15,000 a month
Taxable HRA (yearly)
₹1,20,000
HRA Received (yearly)
₹3,00,000

The exemption is the lowest of these three (yearly)

Actual HRA received₹3,00,000
Rent paid − 10% of basic + DA₹1,80,000
50% of basic + DA₹3,00,000
HRA exemption is available only under the old tax regime. Under the new regime all HRA is taxable. Check which regime is better with the old vs new regime calculator.

How HRA exemption is calculated

The tax-free part of your HRA is the lowest of:

  1. The HRA you actually receive
  2. Rent paid minus 10% of basic salary + DA
  3. 50% of basic + DA if you live in one of the 50% cities, otherwise 40%

The rest of your HRA is added to taxable salary. From FY 2026-27 the Income-tax Rules 2026 extend the 50% limit to Bengaluru, Hyderabad, Pune and Ahmedabad, as well as Delhi, Mumbai, Kolkata and Chennai.

Things to keep in mind

You must actually pay rent and live in the rented home. Give your employer rent receipts, and your landlord's PAN if annual rent is above ₹1 lakh. The new rules also ask you to disclose your relationship with the landlord. Paying rent to a parent is allowed if they own the house and declare the rent as income.