india • INR

HRA Calculator India FY 2026-27

Calculate your HRA tax exemption for FY 2026-27 with the least-of-three test: HRA received, rent minus 10% of salary, and 50% (8 metro cities) or 40% of salary. Old regime.

Last revised 29 September 2026

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Salary and HRA

Basic Salary (₹ per month)

Monthly basic pay. HRA is worked out on basic pay plus dearness allowance, not on gross pay.

Dearness Allowance (₹ per month)

Only DA that counts for retirement benefits. Leave 0 if your pay has no DA component.

HRA Received (₹ per month)

The HRA your employer pays, as shown on your payslip.

Rent and Location

Rent Paid (₹ per month)

Rent you actually pay to your landlord.

City of Residence

Months Rent Was Paid This Year

1 to 12. Use fewer than 12 if you rented for part of the financial year.

Tax Regime

Your Income-Tax Slab Rate (%)

Used only to estimate the tax the exemption saves. Enter 0 to hide the estimate.

How this estimate was calculated

The exemption is set by the HRA you actually receive.
Annual rent above ₹1,00,000 needs your landlord's PAN on your rent declaration to your employer.
The salary used is basic pay plus dearness allowance that counts for retirement benefits (and commission paid as a fixed percentage of turnover). Special allowances, bonus and other pay are not part of it. The exemption is only available if you do not own the home you live in and actually pay rent. This is an estimate, not tax advice.

Disclaimer: This calculator estimates the HRA exemption from the figures you enter under the old tax regime for FY 2026-27. It is not tax advice. Your employer applies the exemption through payroll and you claim it in your return; confirm the treatment for your circumstances with a qualified tax professional. Full disclaimer.

Sources & methodology

Formula:: Income Tax Department guidance on house rent allowance (formerly section 10(13A) of the 1961 Act), as carried into the Income-tax Act, 2025 and the Income-tax Rules, 2026.
Reference:: Income Tax Department, Government of India
Rates for:: 2026/27
Content last updated:: September 2026
Scheduled re-verification:: April 2027

Calculation type: Rule-based calculation. Uses 2026 rates and thresholds. Figures are taken from Income Tax Department, Government of India — see sources below.

Your entries stay on this device. This calculator runs entirely in your browser — the figures you type are not sent to us or to anyone else. The page itself uses cookies for analytics and advertising, described in the privacy policy.

Formula & methodology

Formula used

Exempt HRA = min( HRA received ,  Rent paid − 10% × Salary ,  50% or 40% × Salary )

Each of the three amounts is computed over the months you paid rent, and the smallest is exempt. Taxable HRA is the HRA received minus the exempt amount. Under the new tax regime the exempt amount is nil.

Origin: Income Tax Department guidance on house rent allowance (formerly section 10(13A) of the 1961 Act), as carried into the Income-tax Act, 2025 and the Income-tax Rules, 2026.

Variable definitions

Symbol	Meaning	Unit
Salary	Salary for HRA. Basic pay plus dearness allowance that counts for retirement benefits, for the months rent was paid.	currency
HRA	HRA received. House rent allowance paid by the employer for those months.	currency
Rent	Rent paid. Rent actually paid for those months.	currency

Limitations

Old tax regime only. Under the new regime there is no HRA exemption.
Salary is basic plus dearness allowance you enter; commission paid as a fixed share of turnover is not asked for.
The eight-city metro list applies from FY 2026-27. Earlier years used four cities. It is confirmed from secondary sources and marked unverified in the data registry until read on the official site.
The calculator does not check that you qualify: you must pay rent, must not own the home you live in, and must have proof of rent.
The deduction for rent paid when no HRA is received, and rent paid to a parent, are not modelled.
The tax-saving estimate applies your slab rate and 4% cess to the exempt amount; it ignores surcharge and the effect on other deductions.

This page is educational. It applies published rates and thresholds to the figures you enter and shows the arithmetic behind the result. It is an estimate, not a tax determination: your actual liability depends on circumstances this calculator does not collect, and only the relevant tax authority — or an accountant who can see your full position — can confirm what you owe.

Sources & references

House Rent Allowance — exemption and Schedule 10(13A) guidance — Income Tax Department, Government of India
Allowances allowable to taxpayer — Income Tax Department, Government of India
Finance Act 2025 — rates of income-tax (as carried forward for FY 2026-27) — Income Tax Department, Government of India
Income Tax Act — Section 194A (interest other than interest on securities) — Income Tax Department, Government of India
Tax rates — TDS threshold limits and rates — Income Tax Department, Government of India

Help & FAQs

Frequently Asked Questions

Clear answers to common questions to help you use this calculator confidently.

How is HRA exemption calculated?

Tap to view the answer

The exempt HRA is the smallest of three amounts: the HRA you actually receive; your rent minus 10% of your salary; and 50% of your salary if you live in a metro city, or 40% if you do not. Salary here means basic pay plus dearness allowance that counts for retirement benefits. Whatever is left of your HRA after that is taxable.

Which cities are metro cities for HRA in FY 2026-27?

Tap to view the answer

Eight cities get the 50% rate from FY 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. The last four were added by the Income-tax Rules, 2026. For FY 2025-26 and earlier only the first four were metros. Every other city stays at 40%.

Can I claim HRA under the new tax regime?

Tap to view the answer

No. HRA exemption is available only under the old tax regime. If you choose the new regime, the whole HRA you receive is taxable. Compare the tax under both regimes before you choose, since the new regime's lower slab rates can outweigh the HRA and other deductions.

What if my rent is less than 10% of my salary?

Tap to view the answer

Then the second test is zero, and because the exemption is the smallest of the three amounts, the exemption is nil. Rent has to be more than 10% of basic plus DA before any part of your HRA is exempt.

Do I need my landlord's PAN or rent receipts?

Tap to view the answer

If your rent is more than ₹1,00,000 in the year, your employer needs your landlord's PAN. Keep rent receipts or a rent agreement in any case, because your employer may ask for proof and the tax department can query the claim. This calculator estimates the amount; it does not check that you qualify.

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Sources & methodology

Formula:

Income Tax Department guidance on house rent allowance (formerly section 10(13A) of the 1961 Act), as carried into the Income-tax Act, 2025 and the Income-tax Rules, 2026.

Reference:

Income Tax Department, Government of India

Rates for:

2026/27

Content last updated:

September 2026

Scheduled re-verification:

April 2027

How to Use This Calculator

Enter your salary and HRA

Use your monthly basic pay, dearness allowance (if any) and the HRA on your payslip.

Enter your rent and city

Rent paid per month, the city you live in, and how many months you paid rent this year.

Choose your tax regime

The exemption applies only under the old regime; the new regime gives none.

Read the three tests

The exemption is the smallest of the three amounts shown, and the note names which one set it.

Understanding Your Results

Least of three
The exempt HRA is the smallest of: HRA actually received; rent paid minus 10% of salary; and 50% of salary (metro city) or 40% (other city).
Salary for HRA
Basic pay plus dearness allowance that counts for retirement benefits. It is not your CTC or gross pay.
Taxable HRA
The part of HRA that is not exempt. It is added to your taxable salary.

Key Tips

✓
HRA exemption is available only under the old tax regime. If you are on the new regime, the whole HRA is taxable.
✓
Bengaluru, Hyderabad, Pune and Ahmedabad join Delhi, Mumbai, Kolkata and Chennai at 50% from FY 2026-27. For FY 2025-26 and earlier those four cities were at 40%.
✓
Rent above ₹1,00,000 a year needs your landlord's PAN on your rent declaration to your employer.
✓
You cannot claim HRA for a home you own, or if you pay no rent.
✓
If your rent is at or below 10% of your salary, the exemption is nil however large your HRA is.

How the HRA Exemption Works in India

The least-of-three test

Your exempt HRA is the smallest of three amounts, each measured over the months you paid rent: the HRA you actually receive; the rent you pay minus 10% of your salary; and 50% of your salary if you live in a metro city, or 40% if you do not. "Salary" means basic pay plus dearness allowance that counts for retirement benefits, and commission paid as a fixed percentage of turnover. Whatever HRA is left after the exemption is taxable.

Which cities count as metro from FY 2026-27

The Income-tax Act, 2025 came into force on 1 April 2026, and the Income-tax Rules, 2026 that operate it extend the 50% rate from four cities to eight: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Every other city stays at 40%. For FY 2025-26 and earlier only the original four were metros, so an older calculator or article that lists four cities is describing the earlier rule. The percentages and the 10% rent test did not change.

Old regime only

HRA exemption is allowed only if you choose the old tax regime. Under the new regime you cannot claim it, whatever your rent or city, so compare both regimes before you decide. The Income Tax calculator on this site compares them for FY 2026-27.

Conditions you must meet

You must actually pay rent, and you cannot claim for a home you own and live in. Rent above ₹1,00,000 a year requires the landlord's PAN. Keep rent receipts or a rent agreement, because your employer may ask for them and the department can query the claim. If you receive no HRA but pay rent, a different deduction for rent can apply under the old regime; this calculator does not compute it.

Sources & References

HRA exemption rules: Income Tax Department guidance on HRA and Schedule 10(13A). Eight-city metro list: Income-tax Rules, 2026, operative from 1 April 2026. The primary department pages returned errors to automated checks when this page was prepared, so the city list was confirmed from independent professional summaries and is marked accordingly in this site's data registry until it is read directly on the official site.

Formula & methodology

Formula used

Exempt HRA = min( HRA received ,  Rent paid − 10% × Salary ,  50% or 40% × Salary )

Origin: Income Tax Department guidance on house rent allowance (formerly section 10(13A) of the 1961 Act), as carried into the Income-tax Act, 2025 and the Income-tax Rules, 2026.

Variable definitions

Symbol	Meaning	Unit
Salary	Salary for HRA. Basic pay plus dearness allowance that counts for retirement benefits, for the months rent was paid.	currency
HRA	HRA received. House rent allowance paid by the employer for those months.	currency
Rent	Rent paid. Rent actually paid for those months.	currency

Limitations

Old tax regime only. Under the new regime there is no HRA exemption.
Salary is basic plus dearness allowance you enter; commission paid as a fixed share of turnover is not asked for.
The eight-city metro list applies from FY 2026-27. Earlier years used four cities. It is confirmed from secondary sources and marked unverified in the data registry until read on the official site.
The calculator does not check that you qualify: you must pay rent, must not own the home you live in, and must have proof of rent.
The deduction for rent paid when no HRA is received, and rent paid to a parent, are not modelled.
The tax-saving estimate applies your slab rate and 4% cess to the exempt amount; it ignores surcharge and the effect on other deductions.

Calculator inputs

Salary and HRA

Rent and Location

Tax Regime

Your results

Sources & methodology

Formula & methodology

Formula used

Variable definitions

Limitations

Sources & references

How is HRA exemption calculated?

Which cities are metro cities for HRA in FY 2026-27?

Can I claim HRA under the new tax regime?

What if my rent is less than 10% of my salary?

Do I need my landlord's PAN or rent receipts?

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Calculator inputs

Salary and HRA

Rent and Location

Tax Regime

Your results

Sources & methodology

How to Use This Calculator

HRA Example: ₹50,000 basic salary in Mumbai

Understanding Your Results

Key Tips

How the HRA Exemption Works in India

The least-of-three test

Which cities count as metro from FY 2026-27

Old regime only

Conditions you must meet

Sources & References

Formula & methodology

Formula used

Variable definitions

Limitations

Sources & references

How to Use This Calculator

HRA Example: ₹50,000 basic salary in Mumbai

Understanding Your Results

Key Tips

How the HRA Exemption Works in India

The least-of-three test

Which cities count as metro from FY 2026-27

Old regime only

Conditions you must meet

Sources & References