How much of your HRA is tax-free, with the least-of-three rule shown
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 5 Oct 2026.HRA exemption is the least of three amounts - HRA received, rent minus 10% of basic + DA, and 50% of basic + DA in eight cities from tax year 2026-27 (four before), 40% elsewhere. On ₹50,000 basic, ₹20,000 HRA and ₹18,000 rent in Mumbai, ₹13,000 a month is exempt.
Tax year 2026-27 and FY 2025-26 · Rates and rules read from the sources listed on this page (the earliest on 5 Oct 2026); they may have changed since.
Choose whether the amounts are Per month or For the year.
Set your Basic salary, Dearness allowance (DA), HRA received and Rent paid.
Pick the Year, then the City of the rented home, and set the months you paid rent.
Read the Tax-free HRA and Taxable HRA, with the three limits shown as bars, then press Share result.
The HRA calculator works out how much of the house rent allowance your employer pays is exempt from income tax, and how much is taxable. It shows all three amounts the rule compares, marks the least one, and gives the exempt and taxable HRA per month and for the year.
HRA exemption is available only under the old tax regime. If you are on the new regime, which is the default, all of your HRA is taxable and this calculation does not apply.
The rule, in plain text: exempt HRA is the least of
Which cities get 50%. From tax year 2026-27, rule 279 of the Income-tax Rules, 2026 lists eight: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. For FY 2025-26, rule 2A of the 1962 Rules lists only Mumbai, Kolkata, Delhi and Chennai, so a Bengaluru, Hyderabad, Pune or Ahmedabad renter gets 40% for that year. Pick the year and the city; the page applies the right list.
Salary here means basic pay plus dearness allowance that counts for retirement benefits (and commission fixed as a percentage of turnover, if you get any; add it to basic). All amounts are for the same period, and only the months you actually paid rent count. Taxable HRA = HRA received − exempt HRA.
People use it before submitting rent proofs to their employer, or to see how much rent would make all of their HRA tax-free. You can enter monthly or yearly figures. Everything runs in your browser.
The calculator does not decide which regime you are on or check your rent receipts, and it does not cover a home you own. Estimates only, not financial advice.
Sources (checked 5 Oct 2026): Income-tax Act, 2025, Schedule III (Table: Sl. No. 11) and section 202(2); Income-tax Rules, 2026 (G.S.R. 198(E), 20 March 2026, in force from 1 April 2026), rule 279; for FY 2025-26, section 10(13A) of the Income-tax Act, 1961 and rule 2A of the Income-tax Rules, 1962.
HRA exemption is the least of three amounts: the HRA your employer actually paid, the rent you paid minus 10% of salary, and 50% of salary in a listed city (40% everywhere else). Salary here means basic pay plus the dearness allowance counted for retirement benefits. The rest of your HRA is taxable.
No. HRA exemption is available only under the old tax regime. Under the new regime, which is the default, the whole HRA is added to your taxable salary. Work out your tax under both regimes before you choose; which one is lower depends on your income and deductions.
From tax year 2026-27, rule 279 of the Income-tax Rules, 2026 gives 50% of salary in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru, and 40% anywhere else. For FY 2025-26 the old rule 2A applies, with only Mumbai, Kolkata, Delhi and Chennai at 50%.
Rent must be at least your HRA plus 10% of salary, as long as your HRA is not above the 50% or 40% cap. The calculator shows the rent at which your exemption reaches its maximum for your inputs.
The exemption counts only the months you lived in rented housing and received HRA. With monthly figures, set the number of months; with yearly figures, enter the totals for those months only.
Use of the calculator is free, with no signup. Nothing you enter leaves your browser: the least-of-three comparison is worked out on your own device. Share copies a link that carries your salary, rent and HRA inside it, so send that link only to people you trust.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about HRA Exemption Calculator and anybody who knows can answer. No account needed.
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