HRA Exemption Calculator

Work out how much of your house rent allowance is tax free under the old regime, from your basic salary, HRA and the rent you pay. Free, private, nothing to sign up for.

HRA Exemption

How much of your house rent allowance is tax free. Only applies under the old regime. From FY 2026-27 the 50% limit covers eight cities: Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad.

How HRA Exemption Works

If you live in a rented home and get HRA, the exempt part is the lowest of these three, all yearly:

  1. The HRA you actually received.
  2. 50% of basic + DA in Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune or Ahmedabad, 40% elsewhere.
  3. Rent paid minus 10% of basic + DA.

Example: basic ₹6 lakh a year, HRA ₹2.4 lakh, rent ₹3 lakh, living in Bengaluru.

The three limits are ₹2.4 lakh, ₹3 lakh and ₹2.4 lakh, so ₹2.4 lakh is exempt and none of the HRA is taxed.

HRA exemption is only available in the old regime. In the new regime HRA is fully taxable, so compare both with the income tax calculator.

Common Questions

Do I need my landlord’s PAN?

Yes, if the rent you pay is more than ₹1 lakh a year. Keep rent receipts or a rent agreement as proof either way.

Can I pay rent to my parents and claim HRA?

Yes, if you really pay them by bank transfer and they own the house. They must show the rent as income in their own return.

What if I get no HRA but pay rent?

Self employed people and employees without HRA may claim a smaller deduction under the old regime (the old section 80GG), subject to its limits.

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