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HRA Calculator

How much of your house rent allowance is tax-free, which rule limits it, and how much tax it saves.

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At a glance

  • Applies the rule for section 10(13A): tax-free HRA is the least of the HRA received, rent minus 10% of salary, and 50% of salary in the big cities (40% elsewhere).
  • From FY 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad are at 50% along with Delhi, Mumbai, Kolkata and Chennai. FY 2025-26 keeps the old list.
  • Shows all three amounts and which one limits you, the taxable HRA and the tax saved at your slab.
  • Handles a raise, a move or a change of rent mid-year: enter each month and the exemption is worked out month by month.
  • Tells you the rent above which the exemption stops rising, and when your landlord’s PAN is needed (rent over ₹1 lakh a year).
  • No HRA? Calculates the section 80GG deduction: the least of ₹5,000 a month, 25% of income, and rent minus 10% of income.

Step by step

How to calculate HRA exemption

  1. 1

    Enter your salary

    Your monthly basic pay plus dearness allowance, from your payslip.

  2. 2

    Enter HRA and rent

    The HRA you receive and the rent you pay each month.

  3. 3

    Choose the city

    Where you rent: it decides whether 50% or 40% of salary is the limit.

  4. 4

    Read the result

    Tax-free HRA for the year, the taxable part, and the tax it saves in the old regime.

Features

Everything you need, nothing you don’t

Three-rule check

See which amount sets your exemption.

8 cities at 50%

Rules for FY 2026-27 and 2025-26.

Month by month

Raises, moves and rent changes.

Tax saved

At 5%, 20% or 30% plus cess.

Section 80GG

Rent deduction without HRA.

Rent receipts

Make them with our receipt generator.

The HRA exemption formula

Tax-free HRA is the lowest of: (1) the HRA you actually receive, (2) rent paid minus 10% of salary, and (3) 50% of salary if you live in one of the eight big cities, or 40% anywhere else. “Salary” means basic pay plus dearness allowance (and commission fixed as a share of sales). With basic of ₹50,000 a month, HRA of ₹20,000 and rent of ₹25,000 in Mumbai: the amounts are ₹20,000, ₹20,000 and ₹25,000, so ₹20,000 a month — ₹2,40,000 a year — is tax-free.

Which cities get 50%

The Income-tax Act, 2025 replaced the 1961 Act from tax year 2026-27 and the Income-tax Rules, 2026 added the four cities. Section numbers on this page are the familiar ones from the 1961 Act.

CityFY 2025-26FY 2026-27 onwards
Delhi, Mumbai, Kolkata, Chennai50%50%
Bengaluru, Hyderabad, Pune, Ahmedabad40%50%
Everywhere else40%40%

FAQ

Frequently asked questions

Can I claim HRA in the new tax regime?

No. HRA exemption and the 80GG deduction are only available in the old regime. Compare both regimes with the Income Tax Calculator.

Can I pay rent to my parents and claim HRA?

Yes, if they own the house, you really pay the rent (ideally by bank transfer), and they show it as income in their tax return. Rent paid to your spouse is not accepted.

When do I need my landlord’s PAN?

When the rent is more than ₹1,00,000 a year — about ₹8,333 a month. If the landlord has no PAN, a signed declaration from them is needed.

What if my salary changed during the year?

The exemption is worked out for each period separately. Turn on “Salary, rent or city changed during the year” and enter each month.

Can I claim both HRA and a home loan?

Yes, if your own house is in a different city from where you work and rent, or you otherwise can’t live in it. Both benefits are in the old regime.

I don’t get HRA. Can I still save tax on rent?

Yes — section 80GG allows the least of ₹5,000 a month, 25% of total income and rent minus 10% of income, if neither you, your spouse nor minor child owns a house where you live or work.

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