HRA Calculator: how much of your HRA is tax-free
Work out your House Rent Allowance exemption from your Basic, HRA, rent and city type, using the least-of-three rule under the Income-tax Act, 2025. Free, instant and private.
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Calculate your HRA exemption
- Enter Basic, HRA, rent and city type
- Applies the least-of-three rule (Rule 279)
- Shows exempt and taxable HRA
Free · no login · nothing is sent anywhere.
How HRA exemption is calculated
Your exempt HRA is the least of these three amounts (old tax regime).
Actual HRA received
The House Rent Allowance component in your salary.
Rent minus 10% of Basic
Annual (or monthly) rent paid, less 10% of Basic + DA.
50% or 40% of Basic
50% of Basic + DA in the eight 50% cities, 40% elsewhere.
Take the least
The smallest of the three is your exempt HRA; the rest is taxable.
Exempt HRA = least of (actual HRA, rent − 10% of Basic, 50%/40% of Basic)
Old tax regime only · Schedule III (Sl. No. 11) of the Income-tax Act, 2025, read with Rule 279 of the Income-tax Rules, 2026 · Tax Year 2026-27.
Good to know
- HRA exemption is available under the old tax regime, not the new regime.
- From Tax Year 2026-27 the 50% rule covers eight cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Up to FY 2025-26 it was only Delhi, Mumbai, Kolkata and Chennai.
- You need rent receipts, and your landlord's PAN if annual rent exceeds ₹1,00,000.
- If you own your home or pay no rent, no HRA exemption applies.
Related free tools
HRA is one part of your tax. Also try Income Tax Calculator, Take-home Salary Calculator, Gratuity Calculator.
Related guides: HR & Payroll Glossary, Professional Tax (India).
Frequently asked questions
How is HRA exemption calculated?
Exempt HRA is the least of three amounts: the actual HRA received, the rent you pay minus 10% of your Basic + DA, and 50% of Basic + DA in one of the eight 50% cities (40% anywhere else). The remainder of your HRA is taxable. This applies under the old tax regime.
Can I claim HRA under the new tax regime?
No. The HRA exemption (Schedule III (Sl. No. 11) of the Income-tax Act, 2025, read with Rule 279 of the Income-tax Rules, 2026) is available only under the old tax regime. If you opt for the new regime, HRA is fully taxable.
Which cities count as metro for HRA?
From Tax Year 2026-27, 50% of Basic + DA applies in eight cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (Rule 279 of the Income-tax Rules, 2026). All other places use 40%. Up to FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai qualified.
What documents do I need to claim HRA?
You need rent receipts, and if your annual rent exceeds ₹1,00,000 you must also provide your landlord's PAN. Keep a rent agreement where possible.
Can I claim HRA if I live with my parents?
Yes, if you genuinely pay rent to your parents who own the home, and they declare that rent as income. Keep proper receipts and a record of the payments.
Please note: Outputs are AI-generated and can contain errors. Use them as a starting point and check anything important before you act on it.
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