Calculators · Tax
HRA exemption calculator
Work out how much of your house rent allowance is tax-free.
Only the part that counts for retirement benefits.
Tax-free HRA (a year)
₹2,40,000
Metro city: 50% of salary is the cap.
- HRA received
- ₹2,40,000
- Rent minus 10% of salary
- ₹2,40,000
- 50% of salary
- ₹3,00,000
- Exempt (the least of the three)
- ₹2,40,000
- Taxable HRA
- ₹0
HRA exemption is available only in the old tax regime.
How it works
The tax-free part of HRA is the least of three amounts: the HRA you receive; the rent you pay minus 10% of your salary; and 50% of salary if you live in a metro city, 40% elsewhere. Salary here means basic pay plus dearness allowance that counts for retirement benefits.
From tax year 2026-27, the Income-tax Rules, 2026 treat eight cities as metros — Bengaluru, Hyderabad, Pune and Ahmedabad joined Delhi, Mumbai, Kolkata and Chennai. Choose FY 2025-26 to see the earlier four-city rule.
The HRA exemption is available only in the old regime.
Formula
Exempt HRA = least of (HRA received, Rent − 10% of salary, 50% or 40% of salary)
- Salary — basic pay + dearness allowance (for retirement benefits)
Questions
Which cities count as metros for HRA?
From tax year 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (Rule 279 of the Income-tax Rules, 2026). Up to FY 2025-26 only the first four counted.
Can I claim HRA in the new regime?
No. The HRA exemption is available only if you choose the old regime.
What if I pay rent to my parents?
You can, if the arrangement is genuine: pay the rent through the bank, keep a rent agreement, and your parent must show the rent as income in their own return.
Results are estimates for planning, not tax, legal or investment advice. Rates and rules were checked on 4 October 2026; confirm the figures that apply to you with your bank, fund house or tax adviser.