HRA exemption calculator · free How much of your HRA is tax-free?
Under the old tax regime, the tax-free part of your house rent allowance is the smallest of three amounts: the HRA you get, rent paid minus 10% of basic, and 50% of basic in a metro city (40% elsewhere). Enter your salary, HRA and rent to see how much is exempt and which rule is holding it back.
Updated · rules for FY 2026-27 (AY 2027-28)
- Free, always
- No sign-up
- Stays in your browser
Your monthly figures
From FY 2026-27, metro means Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
Tax-free HRA
₹1,68,000/ year
₹14,000 a month · 70% of your HRA
The three rules — the lowest one counts
At a rent of ₹24,000 a month, the exemption would reach its maximum of ₹2,40,000 a year.
How to use the HRA Calculator
- Enter your monthly basic pay, dearness allowance and the HRA you receive.
- Enter the rent you pay each month.
- Choose whether you live in one of the eight metro cities (50%) or elsewhere (40%).
- See the tax-free and taxable HRA, and which of the three rules limits it.
Worked example
You live in a metro city, your basic pay is ₹40,000 a month, your employer pays ₹20,000 a month as HRA, and your rent is ₹18,000 a month. These are the figures the calculator opens with. For the year:
| HRA you receive | ₹2,40,000 |
| Rent paid minus 10% of basic | ₹1,68,000 |
| 50% of basic (metro) | ₹2,40,000 |
| Tax-free HRA (the smallest) | ₹1,68,000 |
| Taxable HRA | ₹72,000 |
Here the limit is "rent paid minus 10% of basic": ₹2,16,000 of rent minus ₹48,000 (10% of basic). At a rent of ₹24,000 a month or more, all of the HRA would be tax-free.
How it's calculated
The tax-free part of your HRA is the smallest of these three amounts, worked out for the year:
- The HRA your employer actually paid you.
- The rent you paid, minus 10% of your salary (basic + DA).
- 50% of your salary if you live in a metro city, or 40% anywhere else.
Exempt HRA = least of (HRA received, rent − 10% of basic + DA, 50% or 40% of basic + DA)
Whatever is left over is added to your taxable salary.
Which cities count as metro
From FY 2026-27, eight cities get the 50% limit: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Earlier, only Delhi, Mumbai, Kolkata and Chennai did.
Only in the old regime
The HRA exemption can't be claimed under the new tax regime. If you're on the new regime, all of your HRA is taxed like the rest of your salary.
Rules used: section 10(13A) of the Income-tax Act, 1961 and rule 2A of the Income-tax Rules (the three limits), with the eight-city metro list that applies from FY 2026-27. Not available under section 115BAC (the new regime).
Questions