HRA Exemption Calculator FY 2026-27
Tax-free HRA for FY 2026-27. Bengaluru, Hyderabad, Pune and Ahmedabad now get 50% of salary, like the four metros. Calculated instantly in your browser.
Last updated: · Eight-city HRA rule for Tax Year 2026-27. Old regime only
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Your result
Tax-free HRA
₹3,00,000
- Taxable HRA
- ₹0
- HRA received
- ₹3,00,000
- What limits it
- Two of the three limits land on the same rupee, so neither one is the only bottleneck.
- Old regime only. The new regime (section 115BAC) gives no HRA exemption, so this amount does not reduce tax if you stay on the new regime.
- Two of the three limits land on the same rupee, so neither one is the only bottleneck.
- Calculated for the months you actually lived in the rented house. Salary here is basic plus DA that counts for retirement.
- Bengaluru now gets 50% of salary. Under the old 40% rule the exemption would have been ₹2,40,000, so this is ₹60,000 more tax-free.
The three limits
| Limit | Amount |
|---|---|
| a. HRA received | ₹3,00,000 |
| b. Rent paid minus 10% of salary | ₹3,00,000 |
| c. 50% of salary (basic + DA) | ₹3,00,000 |
| Exemption (lowest of a, b, c) | ₹3,00,000 |
Disclaimer: Old-regime estimate for planning, not tax advice. Confirm the city list and the landlord details on the form for the year you claim.
How it's calculated
Salary = basic + DA (only DA that is part of the terms of employment)
Exempt = lowest of: HRA received, rent − 10% of salary, 50% or 40% of salary
Taxable HRA = HRA received − exempt
The 50% cities are Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Everywhere else the cap is 40% of salary. For someone in Bengaluru on a basic of ₹6 lakh, with HRA of ₹3 lakh and rent of ₹3.6 lakh, all three limits equal ₹3 lakh, so the whole HRA is tax-free. Under the old 40% rule that city would have stopped at ₹2.4 lakh, which is ₹60,000 less.
Assumptions
- Old regime only. Switch the income tax calculator to see whether the exemption actually beats the new regime.
- Figures are for the months you lived in the rented house.
- DA is included only when it counts for retirement benefits. Other allowances and perquisites are left out.
- No exemption when you pay no rent or you live in your own house.
- Landlord PAN above ₹1 lakh of rent, and the relationship disclosure in the 2026 rules, are filing requirements. Confirm both on the current form.
How to use this calculator
- Enter salary. Type basic pay and any DA that counts for retirement.
- Enter HRA and rent. Use the HRA on your payslip and the rent you actually paid.
- Pick the city. Choose the city of the rented house. Eight cities get 50% of salary.
- Set the months. Use fewer than 12 months if you did not rent for the full year.
- Read the lowest of the three. The exemption is the smallest of HRA received, rent minus 10% of salary, and the city percentage.
Frequently asked questions
How is HRA exemption calculated?
It is the lowest of three amounts: the HRA you received, rent paid minus 10% of salary, and 50% of salary in eight cities (40% elsewhere). Salary means basic plus dearness allowance that counts for retirement. This is the section 10(13A) rule. The 2026 rules keep the relief and add Bengaluru, Hyderabad, Pune and Ahmedabad to the 50% list.
Which cities get 50% HRA in 2026-27?
Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Every other city stays at 40% of salary. The house that matters is the one you rent, not the city on your office address.
Can I claim HRA in the new regime?
Only in the old regime. The new regime (section 115BAC) gives no HRA exemption. The figure on this page reduces tax only if you opt out of the new regime.
Can I claim HRA if I pay rent to my parents?
Yes, when you actually pay the rent, you do not own the house, and you can show the payment. The 2026 rules also ask you to disclose your relationship with the landlord. Keep a rent agreement and the transfer proof.
Do I need my landlord's PAN?
The familiar practice is to quote the landlord's PAN when annual rent is above ₹1 lakh. Confirm that threshold on the form for the year you file. The 2026 rules also ask for your relationship with the landlord.
Can I claim HRA and home-loan interest together?
Yes, in the old regime, when both claims are real. A common case is renting in the city where you work and paying interest on a house in another city. Section 24(b) interest on a self-occupied house is capped at ₹2 lakh.
What if I don't get HRA from my employer?
Section 80GG in the old regime can allow a deduction for rent you pay, with its own limits. Check the current limit on the form before you claim it. This calculator does not compute 80GG.
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Results from FinanceChacha are estimates for planning and education, not financial, tax or legal advice.