HRA calculator

If you pay rent and get house rent allowance, part of it can be tax-free in the old regime. The exempt part is the lowest of three amounts, shown below the result.

Basic pay + DA (a year) (₹)

HRA received (a year) (₹)

Rent paid (a year) (₹)

Where you live

HRA exempt from tax (old regime)

₹2,40,000 (2.40 lakh)

Taxable HRA₹0

1. HRA received₹2,40,000 (2.40 lakh)

2. Rent minus 10% of salary₹2,40,000 (2.40 lakh)

3. 50% of salary₹3,00,000 (3.00 lakh)

Worked example

Basic pay ₹6 lakh a year, HRA ₹2.4 lakh, rent ₹3 lakh, living in Pune: (1) HRA ₹2.4 lakh; (2) rent minus 10% of salary = ₹2.4 lakh; (3) 50% of salary = ₹3 lakh. The lowest is ₹2.4 lakh, so the whole HRA is tax-free.

Source: Income-tax Rules, 2026 (effective 1 April 2026), as reported. Check your employer's payroll guidance for your year.

Questions people ask

How is the HRA exemption calculated?

It is the lowest of: the HRA you actually receive; the rent you pay minus 10% of salary; and 50% of salary in the eight listed cities or 40% elsewhere. Salary here means basic pay plus dearness allowance.

Which cities get 50%?

From FY 2026-27, under the Income-tax Rules, 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Earlier years used only the first four.

Does HRA work in the new regime?

No. The HRA exemption is available only in the old regime.

What proof is needed?

Rent receipts or an agreement, and the landlord's PAN if rent is more than ₹1 lakh a year. The new rules also ask you to state your relationship with the landlord.

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Results are estimates for information only, not financial or tax advice. Rates, rules and limits change, so check with your bank, employer or a qualified adviser before you decide.