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TAX CALCULATOR

HRA Exemption Calculator

How much of your House Rent Allowance is tax-free, and the rent that gets the full exemption.

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From FY 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad count as metros (50%).
Lowest of three limitsMetro city, 50%
HRA exemption (a month)₹13,00013.0 thousand
Taxable HRA (a month)₹7,0007.0 thousand
Exemption for the year₹1,56,0001.56 lakh

How it was worked out

Metro city: 50% of basic + DA. The exemption is the lowest of:

HRA you received
₹20,000
Rent paid minus 10% of basic + DAApplies
₹13,000
% of basic + DA for your city
₹25,000

Rent of ₹25,000 a month or more would get the full exemption of ₹20,000 a month.

HRA exemption is only available in the old tax regime. See if the old regime is better for you · Make rent receipts

How HRA exemption works

If you pay rent and your salary includes House Rent Allowance, part of the HRA is tax-free under the old regime. The tax-free part is the lowest of three amounts: the HRA you actually receive, the rent you pay minus 10% of your basic salary + DA, and 50% of basic + DA if you live in a metro city (40% elsewhere).

For FY 2026-27, the metro cities are Mumbai, Delhi, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Ahmedabad. If your yearly rent is over ₹1 lakh, your employer will also ask for your landlord's PAN.

An estimate under the old tax regime, not tax advice. Your employer applies the final figure based on your rent receipts. Calculated in your browser; nothing you enter is sent anywhere.