This HRA calculator works out how much of your house rent allowance is tax-free, using the rules for FY 2026-27, when the 50% limit was extended from four cities to eight. Switch to FY 2025-26 to check the return you are filing for last year. It also shows which limit is holding your exemption down, and the rent above which you gain nothing more.
Step 1
Year and city
Step 2
Your monthly figures
Only basic pay and dearness allowance (if it counts for retirement benefits), plus any commission fixed as a percentage of turnover. Leave out other allowances.
Your result
—
Taxable part of your HRA
—
Estimated tax saved (old regime)
—
At your slab rate plus 4% cess
How this calculator works
The tax-free part of your HRA is the lowest of three amounts, worked out for the months you actually paid rent:
- The HRA you received from your employer.
- Rent paid minus 10% of salary, where salary means basic plus DA (and turnover-based commission).
- 50% of salary if you live in one of the listed cities, or 40% anywhere else.
| City | FY 2025-26 | FY 2026-27 onward |
|---|---|---|
| Delhi, Mumbai, Kolkata, Chennai | 50% | 50% |
| Bengaluru, Hyderabad, Pune, Ahmedabad | 40% | 50% |
| All other cities and towns | 40% | 40% |
Whatever is not exempt is added to your salary and taxed. The rent ceiling the calculator shows is the rent at which limit 2 stops being the lowest: paying more than that does not raise your exemption.
What you need to claim it
- Rent receipts or a rent agreement, and payments that can be traced (bank transfer or UPI is best).
- Your landlord's PAN if the rent is more than ₹1 lakh for the year.
- From FY 2026-27, a statement of whether the landlord is related to you, in the declaration you give your employer (Form 124, which replaced Form 12BB).
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