HRA Exemption Calculator
Find how much of your house rent allowance is tax-free under the old regime for 2026-27, now that Bengaluru, Hyderabad, Pune and Ahmedabad get the 50% limit.
How this calculator works
The exempt part of HRA is the least of: (1) the HRA you actually receive; (2) rent paid minus 10% of salary; and (3) 50% of salary in the eight listed cities, or 40% elsewhere. "Salary" here means basic pay plus dearness allowance (where it counts for retirement benefits). The rest of your HRA is taxable.
From 1 April 2026 the Income-tax Rules under the Income-tax Act, 2025 extended the 50% limit from four cities to eight, adding Bengaluru, Hyderabad, Pune and Ahmedabad. Claimants must also disclose their relationship with the landlord. HRA exemption is available only in the old tax regime.
Worked example: ₹50,000 basic + DA, ₹25,000 HRA, ₹30,000 rent
| Item | Amount |
|---|---|
| Actual HRA (a month) | ₹25,000 |
| Rent − 10% of salary | ₹25,000 |
| 50% of salary (listed city) | ₹25,000 |
| Exempt HRA, listed city (a year) | ₹3,00,000 |
| Exempt HRA, other city (40% cap; a year) | ₹2,40,000 |
Sources & data
Figures checked on November 3, 2026.
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Frequently Asked Questions
Which cities get 50% HRA exemption from 2026-27?
Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Every other city uses the 40% limit.
Can I claim HRA in the new tax regime?
No. HRA exemption is available only if you choose the old regime.
How is HRA exemption calculated?
It is the lowest of actual HRA received, rent paid minus 10% of basic plus DA, and 50% (listed cities) or 40% (other cities) of basic plus DA.
Do I need my landlord’s PAN?
Employers ask for the landlord’s PAN when annual rent is above ₹1 lakh. From 2026-27 you must also disclose your relationship with the landlord.