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 other city
Basic pay ₹30,000 monthly (no DA), HRA ₹15,000 monthly, rent ₹18,000 monthly, 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 regime, the tax-free HRA for the year is the smallest of these:
- The HRA you actually received.
- The rent you paid, minus 10% of your salary (basic pay and dearness allowance).
- 50% of your salary if you rent in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad; 40% anywhere else.
The remaining HRA is taxed as salary. Calculate all three for the months you paid rent. The list of 8 cities is from the Income-tax Rules, 2026, effective 1 April 2026 (FY 2026-27); earlier years included only Delhi, Mumbai, Kolkata, and Chennai. The new tax regime offers no HRA exemption.
Tip: Employers typically ask for your landlord's PAN when rent exceeds ₹1 lakh a year.
When to Use the HRA Exemption Calculator
The HRA Exemption Calculator helps you determine the tax-free portion of your house rent allowance. Use it before accepting a job offer to understand your potential tax obligations under the old tax regime. This can give you a clearer picture of your net income based on various salary scenarios available on IT & Tech Jobs.
It’s also useful when you’re considering a job change and want to compare job offers in different cities like Bengaluru or Chennai. By calculating the tax-free amount, you can better evaluate job opportunities posted in the IT and other sectors on our platform. This tool complements your job search and application process on IT & Tech Jobs.