HRA Exemption Calculator for FY 2026-27
See how much of your house rent allowance 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 of ₹30,000 monthly (no DA), HRA of ₹15,000 monthly, with rent of ₹18,000 monthly, over 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
Under the old tax regime, the tax-free portion of HRA for the year is the smallest of:
- The HRA you actually got.
- The rent you paid, less 10% of your salary (basic pay plus dearness allowance).
- 50% of your salary if you rent in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad; 40% elsewhere.
The rest of your HRA is taxed as salary. All three are calculated for the months you paid rent. The list of 8 cities is from the Income-tax Rules, 2026, effective from 1 April 2026 (FY 2026-27); previous years included only Delhi, Mumbai, Kolkata, and Chennai. The new tax regime offers no HRA exemption.
Tip: employers often request your landlord's PAN when rent is over ₹1 lakh a year.
When to Use the HRA Exemption Calculator
Use the HRA Exemption Calculator before accepting a job offer. It helps you find out how much of your house rent allowance is tax-free. This is useful if you are looking at job offers from different cities like Bengaluru or Mumbai. Knowing your tax-free HRA can help you understand your take-home pay better.
Once you've received an offer, you can use the calculator to compare it to other offers. This way, you will know what your net income might look like under the old tax regime. It fits well with searching and applying for jobs on Careerwood Jobs, as it gives a clearer view of what each salary offer really means.