Calculator

HRA Calculator – Exemption Under Old Regime

See how much of your House Rent Allowance is tax-exempt. HRA exemption applies to the old tax regime only.

Basic salary + DA (₹ per month)

HRA received (₹ per month)

Rent paid (₹ per month)

My city is on the 50% list. The list in our rules is: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Tick this if your rent is in one of them; otherwise the 40% limit is used.

Living in Bengaluru, Hyderabad, Pune or Ahmedabad? Reports say these cities move to the 50% limit from FY 2026-27 under the Income-tax Rules, 2026, but we could not confirm the final notified rule. Ask your employer which limit their payroll applies, and tick the box above if it is 50%.

1. HRA received

2. Rent − 10% of basic

Exempt HRA (the least of the three)

Taxable HRA

Enter your basic salary to see the exemption.

Estimate for the old tax regime. Rules as of FY 2026-27 (AY 2027-28), same slabs as FY 2025-26. You usually need rent receipts, and the landlord's PAN for yearly rent above ₹1 lakh. Confirm with your employer or a tax professional.

About the HRA Exemption Calculator

The HRA Exemption Calculator finds how much of your House Rent Allowance is tax-exempt under the old tax regime. The exemption is the least of three amounts: the HRA you receive, rent paid minus 10% of basic salary, and 50% or 40% of basic salary depending on your city. HRA is not available under the new regime.

HRA Exemption Calculator quick facts

Exemption:

The least of: HRA received, rent paid minus 10% of basic, and 50% or 40% of basic

50% cities (FY 2026-27):

Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad

Other cities:

40% of basic

Regime:

Old regime only. HRA is not available in the new regime

How to use the HRA Exemption Calculator

Enter your monthly basic salary (plus dearness allowance if any), monthly HRA and monthly rent.
Choose whether you live in a city that gets the 50% limit.
Read the three limbs, the exempt HRA and the taxable HRA.

The three-way HRA rule

The exempt part of your HRA is the least of three amounts: the HRA you actually receive, the rent you pay minus 10% of your basic salary (plus dearness allowance), and 50% of basic for the cities on the 50% list or 40% of basic elsewhere. Whatever HRA is not exempt is taxable.

Worked example

With a basic salary of ₹40,000 a month, HRA of ₹20,000 and rent of ₹18,000 in a city on the 40% list: HRA received is ₹2,40,000 a year, rent minus 10% of basic is ₹1,68,000, and 40% of basic is ₹1,92,000. The least is ₹1,68,000, so that much is exempt and ₹72,000 is taxable.

What you need to claim it

Rent receipts or a rent agreement, and the landlord's PAN if yearly rent is above ₹1 lakh. Employers usually collect these before applying the exemption in your monthly TDS. HRA is available only under the old regime.

Common mistakes

Using total salary instead of basic plus DA, claiming HRA while choosing the new regime, and assuming a city is on the 50% list. See the note on this page about reported changes to the list.

Frequently asked questions about the HRA Exemption Calculator

What is the HRA exemption formula?

The exempt amount is the least of: actual HRA received, rent paid minus 10% of basic salary (plus DA), and 50% of basic for the cities on the 50% list or 40% elsewhere.

Which cities get the 50% limit?

From FY 2026-27, eight cities get the 50% limit: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Bengaluru, Hyderabad, Pune and Ahmedabad were added by the Income-tax Rules, 2026. Other cities use 40%. For FY 2025-26 or earlier, only the first four cities qualify.

Can I claim HRA under the new tax regime?

No. The HRA exemption is available only under the old tax regime. If you choose the new regime, you cannot claim it. Use the income tax calculator to compare both regimes and see which one leaves you with less tax for your salary and rent.

Do I need rent receipts?

Employers usually ask for rent receipts to allow the HRA exemption, and for yearly rent above ₹1 lakh they typically also need the landlord's PAN. Keep receipts or rent agreements ready, because you may also need to show them when you file your return.

What if I pay rent to my parents?

It can be allowed if it is a genuine arrangement with rent actually paid and the parent reports it as income. Talk to a tax professional about your case.

What counts as basic salary for HRA?

For HRA, salary means basic pay plus any dearness allowance that forms part of retirement benefits, and commission based on a fixed percentage of turnover. Other allowances, such as conveyance or special allowance, are not included in the figure used for the exemption.

Free, no sign-up. Reviewed 15 October 2026 by the Gopafy team. See all free tools.