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.
Example: Listed city and other city
Details: 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
In the old tax system, the tax-free HRA for the year is the smallest of:
- The actual HRA you got.
- The rent you paid minus 10% of your salary (basic pay and dearness allowance).
- If you rent in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, or Ahmedabad, it's 50% of your salary; it's 40% in other places.
The remaining part of your HRA gets taxed as salary. Each of the three figures is calculated for the months you paid rent. The list of 8 cities follows the Income-tax Rules, 2026, which apply from 1 April 2026 (FY 2026-27). Before this, the list included only Delhi, Mumbai, Kolkata, and Chennai. Under the new tax regime, there isn't any HRA exemption.
Tip: When rent exceeds ₹1 lakh a year, employers typically request your landlord's PAN.
When to Use the HRA Exemption Calculator
Our HRA Exemption Calculator is a handy tool when you're evaluating a job offer or planning your finances before switching jobs. It helps you see how much of your house rent allowance is tax-free, which can be useful in budgeting your living costs if you're relocating to a new city like Bengaluru or Hyderabad.
Using the calculator is simple while exploring job opportunities on Daily Hirer. After finding potential roles in IT or other fields, the tool can offer insights into your take-home pay as you consider offers. It's particularly helpful if you're deciding between offers in cities like Delhi or Mumbai.