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HRA Exemption Calculator
Find out how much of your house rent allowance is tax-free and how much is taxable, using the updated city list for 2026-27.
How HRA exemption is calculated
The tax-free part of your HRA is the lowest of three amounts: the HRA actually received, 50% of salary if you live in one of the eight listed cities or 40% elsewhere, and rent paid minus 10% of salary. Salary here means basic pay, dearness allowance that counts for retirement benefits, and commission based on turnover.
What changed from 1 April 2026
Under the Income-tax Rules, 2026, the 50% limit now applies in Bengaluru, Hyderabad, Pune and Ahmedabad as well as Delhi, Mumbai, Kolkata and Chennai. Employees in these four cities can now claim a larger exemption. Disclosure of the landlord relationship is also required.
Frequently asked questions
Can I claim HRA in the new tax regime?
No. HRA exemption is available only in the old regime. Use our income tax calculator to check whether the old regime with HRA saves more tax than the new regime.
Do I need my landlord’s PAN?
Yes, if the rent paid exceeds ₹1 lakh a year. Give your employer the landlord’s PAN along with rent receipts or the rent agreement.
Can I claim HRA if I pay rent to my parents?
Yes, if you actually pay rent to them, ideally by bank transfer under a rent agreement, and they show it as income in their return. You cannot claim HRA for rent paid to your spouse.
Need a hand? Income tax return filing services or book a free consultation with our CA-led team.