New 8-city metro list
Bengaluru, Hyderabad, Pune and Ahmedabad get the 50% limit from FY 2026-27, alongside Delhi, Mumbai, Kolkata and Chennai.
Updated for the Income-tax Rules 2026: 8 cities now get 50%
HRA CalculatorHouse Rent Allowance Exemption FY 2026-27
Use this free HRA calculator to find how much of your house rent allowance is tax-free and how much is taxable. It applies the least-of-three rule, the new 50% limit for Bengaluru, Hyderabad, Pune and Ahmedabad, and shows the tax you save under the old regime.
- FY 2026-27 and FY 2025-26
- Least-of-three breakdown
- Tax saved estimate
- Best rent for full exemption
Least-of-three breakdown
Bengaluru, FY 2026-27, 50% limitYour exemption is the lowest of these
All figures are for the full year.Your annual figures
Salary here means basic pay plus retirement DA.| Item | Per year |
|---|
Why this tool
An HRA Calculator Built for the 2026 Rules
Many HRA calculators still treat Bengaluru, Hyderabad, Pune and Ahmedabad as non-metro cities. This one follows the current rules and shows you exactly why you get the exemption you do.
Both financial years
Switch to FY 2025-26 for the return you are filing now, where only the four original metros get 50%.
Visual least-of-three
See all three limits side by side, with the one that caps your exemption clearly highlighted.
Tax saved estimate
Pick your old-regime slab to see roughly how much tax the exemption saves, including cess.
Best rent for full benefit
Find the rent at which your exemption peaks, so you know when paying more rent stops saving tax.
Private and instant
Your salary details stay on your device. No sign-up, no PAN and nothing stored.
How to use
How to Use the HRA Calculator
Everything updates as you type, so you can test different rents and cities instantly.
Pick the financial year
Choose FY 2026-27 for this year's planning, or FY 2025-26 for your current return.
Select your city
Choose where you actually live and pay rent, not where your office is registered.
Enter salary and HRA
Add your basic salary, retirement DA if any, and the HRA your employer pays.
Add your rent
Enter the rent you pay and how many months you rented this year.
Check the result
See your tax-free HRA, taxable HRA and tax saved. Then copy the result for your records.
The formula
How Is HRA Exemption Calculated?
Under the old tax regime, the tax-free part of your HRA is the lowest of three amounts. The rest of your HRA is added to your taxable salary.
Here, salary means basic pay plus dearness allowance that counts for retirement benefits, plus any commission based on a fixed percentage of turnover. It does not include other allowances or bonuses.
Worked example
Suppose you live in Bengaluru with a basic salary of ₹40,000 a month, HRA of ₹20,000 a month and rent of ₹30,000 a month. For the year, HRA is ₹2,40,000, rent minus 10% of salary is ₹3,12,000, and 50% of salary is ₹2,40,000.
So the exemption for FY 2026-27 is ₹2,40,000, and your whole HRA is tax-free. In FY 2025-26, Bengaluru used the 40% limit of ₹1,92,000, so ₹48,000 was taxable.
HRA exemption formula
Exemption = lowest of A, B and C
- A: actual HRA received from your employer.
- B: rent paid minus 10% of salary.
- C: 50% of salary in the eight listed cities, or 40% elsewhere.
- Salary: basic pay + retirement DA + turnover-based commission.
- Taxable HRA: HRA received minus the exemption.
| City | FY 2025-26 | FY 2026-27 |
|---|---|---|
| Delhi, Mumbai, Kolkata, Chennai | 50% | 50% |
| Bengaluru, Hyderabad, Pune, Ahmedabad | 40% | 50% |
| All other cities | 40% | 40% |
Tax regime
HRA in the Old vs New Tax Regime
HRA exemption is available only under the old tax regime. Under the new regime, your entire HRA is taxable, although you get a higher standard deduction and lower slab rates.
So if you pay high rent, compare both regimes before you choose. A large HRA exemption, along with other old-regime deductions, can sometimes make the old regime cheaper.
If your employer does not pay HRA at all, the old regime offers a separate, smaller deduction for rent paid, subject to its own conditions.
Rules
Documents and Conditions to Claim HRA
Keep rent receipts or a rent agreement as proof, and give them to your employer on time. If your annual rent is above ₹1 lakh, you also need your landlord's PAN.
You can pay rent to your parents and claim HRA, provided you actually pay them and they report the rent as income. However, you cannot claim HRA for rent paid to your spouse.
Filing now? For FY 2025-26 returns, Bengaluru, Hyderabad, Pune and Ahmedabad still use the 40% limit. The 50% limit applies from FY 2026-27.
Benefits
Benefits of Using This HRA Calculator
- Check the HRA exemption shown on your payslip or Form 16.
- See how much the new 50% limit saves you in FY 2026-27.
- Decide between the old and new tax regime with real numbers.
- Plan a salary structure with your employer.
- Know how much rent gives you the full tax benefit.
- Avoid surprises when your employer deducts TDS.
FAQ
HRA Calculator FAQs
Answers to common questions about house rent allowance and tax.
How is HRA exemption calculated?
The exemption is the lowest of three amounts: the HRA you receive, rent paid minus 10% of salary, and 50% of salary in the eight listed cities or 40% elsewhere. Salary means basic pay plus retirement DA and turnover-based commission.
Which cities get 50% HRA exemption from April 2026?
From FY 2026-27, the 50% limit applies to Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All other cities use 40% of salary.
Can I claim HRA in the new tax regime?
No. HRA exemption is available only under the old tax regime. If you choose the new regime, your full HRA is taxable, but you get lower slab rates and a higher standard deduction.
Is landlord PAN mandatory for HRA?
Yes, if your annual rent is more than ₹1 lakh. Without the landlord's PAN, your employer may not allow the exemption, and you may need to claim it in your return with proof.
Can I claim HRA if I pay rent to my parents?
Yes, as long as you actually pay the rent, ideally by bank transfer, and your parents show it as income in their tax return. You cannot claim HRA for rent paid to your spouse.
What if I did not pay rent for the whole year?
The exemption applies only to the months you paid rent. HRA received for the other months is fully taxable. Enter the number of rented months in the calculator to see the exact split.
Does my office city or home city decide the HRA limit?
The city where you live and pay rent decides the limit. For example, if you work in Bengaluru but rent a home in a nearby town outside the city, the 40% limit may apply.
Can I claim HRA and a home loan deduction together?
Yes, in many cases. For example, if your own house is in another city or not yet ready, you can claim HRA for the rented home and a home loan deduction under the old regime, subject to their rules.
Make Every Rupee of Rent Count
A few minutes with the HRA calculator can save you thousands in tax. Check your exemption, compare regimes and share the numbers with your employer before the next TDS deduction.
Calculate my HRAMore salary and tax calculators
This HRA calculator gives estimates for general information. Tax saved is approximate and ignores surcharge and other income. Rules can change, so confirm with your employer, the Income Tax Department or a tax professional before filing.