HRA Exemption Calculator

Find out how much of your house rent allowance is tax-free — with the three-way rule explained and the 50% rate for the 8 metro cities from tax year 2026-27.

  • The exact three-way rule, explained
  • 50% for 8 metro cities from tax year 2026-27
  • Landlord PAN reminder over ₹1 lakh rent
  • Free and instant

HRA exemption is available only in the old tax regime. Under the Income-tax Rules, 2026, Bengaluru, Hyderabad, Pune and Ahmedabad joined Mumbai, Delhi, Kolkata and Chennai at 50% from tax year 2026-27 (FY 2025-26 still uses the four-city rule) — confirm with your employer.

Frequently asked questions

How is HRA exemption calculated?

It's the lowest of: (1) the HRA you receive, (2) rent paid minus 10% of Basic + DA, and (3) 50% of Basic + DA in the 8 metro cities, or 40% elsewhere.

Which cities get 50%?

From tax year 2026-27: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All other cities get 40%.

Can I claim HRA in the new regime?

No — the HRA exemption is only available in the old regime. Use the Income Tax Calculator to see which regime is better for you.

What proof do I need?

Rent receipts for each month and the rental agreement. If the rent is over ₹1 lakh a year, your landlord's PAN too.

Claim the right HRA

If you live in a rented home and get HRA, part of it is tax-free in the old regime. Enter your figures for the year to see the exempt amount.

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