HRA Exemption Calculator for FY 2026-27
See how much of your HRA is tax-free under the old tax regime. With basic pay of ₹30,000, HRA of ₹15,000 and rent of ₹18,000 a month in Bengaluru, ₹1,80,000 a year of HRA is exempt; in a city not on the list, ₹1,44,000 is.
Tax-free HRA for the year
—
| For the year | Amount |
|---|---|
| HRA received | |
| Taxable HRA |
The 50% limit applies in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad from FY 2026-27 (1 April 2026). Up to FY 2025-26 it applied only in Delhi, Mumbai, Kolkata and Chennai.
Worked example: listed city and another city
Basic pay ₹30,000 a month (no DA), HRA ₹15,000 a month, rent ₹18,000 a month, for 12 months.
| For the year | Listed city | Another city |
|---|---|---|
| 1. HRA received | ₹1,80,000 | ₹1,80,000 |
| 2. Rent ₹2,16,000 − 10% of basic ₹3,60,000 | ₹1,80,000 | ₹1,80,000 |
| 3. 50% / 40% of basic | ₹1,80,000 | ₹1,44,000 |
| Tax-free HRA (least of 1–3) | ₹1,80,000 | ₹1,44,000 |
| Taxable HRA | ₹0 | ₹36,000 |
How it's calculated
Old tax regime: Tax-free HRA for the year is the smallest of:
- The HRA you actually received.
- Rent paid minus 10% of your salary (basic pay plus DA).
- If you rent in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, or Ahmedabad, it's 50% of your salary; 40% for other places.
The rest of your HRA is taxed as salary. Calculate all three for the months rent was paid. The 8 cities list comes from the Income-tax Rules, 2026, effective 1 April 2026 (FY 2026-27); before, only Delhi, Mumbai, Kolkata and Chennai were included. No HRA exemption under the new tax regime.
Tip: employers usually ask for your landlord's PAN when the rent is over ₹1 lakh a year.
When to Use the HRA Calculator
You might use this tool before or after receiving a job offer if you need to understand how much of your house rent allowance is not taxable. It's handy when comparing offers to your current job. Use it to check the tax-free portion before making any decisions.
Searching for IT or technology roles in cities like Bengaluru and Mumbai on InnHirers? This calculator suits your process by helping you see the tax impact of potential job locations. Whether you're planning to accept an offer or deciding to stay put, it's a useful step in your job considerations.