HRA Exemption Calculator 2026-27
How much of your house rent allowance is exempt from tax in 2026-27 under the old regime, with the eight cities that now get the 50% limit.
Result
HRA exempt from tax: ₹2,40,000
Old regime only. Rent above ₹1 lakh a year needs the landlord’s PAN for the employer to allow it.
- HRA that is taxable
- ₹0
- Limited by
- the HRA you received
- Limit 1: HRA received
- ₹2,40,000
- Limit 2: rent less 10% of salary
- ₹2,52,000
- Limit 3: share of salary for your city
- ₹2,40,000
https://calcgallery.com/income-tax/hra-exemption-calculator/
An estimate from the published rates for the tax year shown, for the situation described on this page. It is not a tax return or tax advice. Rules change with each budget, and your own circumstances can change the answer. Check it against your payslip and the tax authority’s own calculator, and confirm anything that matters with a qualified tax adviser. Read the full disclaimer
How to use the HRA Exemption Calculator 2026-27
- Enter your basic salary plus dearness allowance for the year, the HRA you received and the rent you paid, all for the same months.
- Pick your city. Eight cities now get the 50% limit.
- Read the exempt HRA, the taxable part and the three limits it was worked out from.
Why the smallest of three
The exemption is meant to cover rent that is a real cost. Each limit stops a different way of overstating it. The first means you can’t exempt more HRA than you were paid. The second means only rent above a tenth of your salary counts, so a token rent exempts nothing. The third caps the exemption at a share of salary, larger in the eight cities where rents are highest.
exempt HRA = least of: HRA received rent paid − 10% × salary 50% × salary (eight cities) or 40% × salary (elsewhere)taxable HRA = HRA received − exempt HRAThe figures come from the same register the India income tax calculator uses, so the two pages always agree.
With your numbers
- Exempt HRA is the smallest of the three limits
- Only under the old regime: the new regime gives no HRA exemption
Quick reference
Old regime only. Rent above ₹1 lakh a year needs the landlord’s PAN for the employer to allow it.
| Example | HRA exempt from tax |
|---|---|
| Pune, rent ₹25,000 a month | ₹2,40,000 |
| Jaipur, same pay and rent | ₹1,92,000 |
| Bengaluru, rent ₹25,000, basic ₹60,000 | ₹2,28,000 |
| Low rent | ₹12,000 |
| No rent paid | ₹0 |
| High rent, Mumbai | ₹4,80,000 |
Where the numbers come from
The fixed figures this calculator relies on, and the published source each one was checked against. How the calculators are built and checked
1 source
Income-tax Act, 2025 (Act 30 of 2025) as amended by the Finance Act 2026, https://www.incometaxindia.gov.in/income-tax-act-2025, Schedule III Sl. 11; Income-tax Rules, 2026 (G.S.R. 198(E) of 20 March 2026), https://www.incometaxindia.gov.in, rule 279
Used for
- HRA: the salary share used in a 50% city.
- HRA: the salary share used everywhere else.
- HRA: rent paid counts only above one-tenth of salary.
Common questions about the HRA Exemption Calculator 2026-27
- How is the HRA exemption calculated?
- It is the smallest of three amounts: the HRA you actually received; the rent you paid less one-tenth of your salary; and half of your salary if you live in one of the eight listed cities, or two-fifths elsewhere. Salary here means basic pay plus dearness allowance if it counts for retirement benefits, not your full pay.
- Which cities get the 50% limit from 2026-27?
- Mumbai, Kolkata, Delhi and Chennai, as before, and from 1 April 2026 also Hyderabad, Pune, Ahmedabad and Bengaluru, under rule 279 of the Income-tax Rules, 2026. Everywhere else uses 40%.
- Can I claim HRA under the new tax regime?
- No. The new regime, which is the default, computes income without the HRA exemption. HRA is then fully taxable as part of salary. Use the India income tax calculator to compare the two regimes with your figures.
- What if my rent or salary changed during the year?
- The exemption is worked out month by month, or for each period in which your salary, HRA, rent or city stayed the same, and the results are added up. For a change during the year, run the page once for each period with that period's figures.
- Can I claim HRA if I live with my parents?
- Yes, if you genuinely pay them rent and they show it as income on their own return. Rent paid to a spouse is generally not accepted.