Free · No sign-up · 8 metro cities from 1 April 2026
HRA Calculator FY 2026-27 Updated
Type your basic, the HRA you get and the rent you pay. See how much of your HRA is tax free, which of the three limits sets it, and what it saves you under the old regime. A ₹40,000 basic with ₹20,000 of HRA and ₹18,000 of rent in Bengaluru gives ₹14,000 a month tax free.
- The three limits, shown
- 8 metro cities, updated
- Old regime and new
- Rent to parents, landlord PAN
Tax-free HRA every month
₹14,000
₹1,68,000 a year is tax free, because rent minus 10% of basic is the smallest of the three.
- HRA you receive₹20,000
- Rent minus 10% of basicthe least₹14,000
- 50% of basic (metro city)₹20,000
- Tax-free HRA a year₹1,68,000
- Taxable HRA a year₹72,000₹2,40,000 of HRA a year, less the tax-free part
- Tax it saves at the 20% slab (with 4% cess)₹34,944
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01 The rule
How HRA Exemption Is Worked Out
Your tax-free HRA is the smallest of three amounts: the HRA you receive, your rent minus 10% of basic, and 50% of basic in a metro city (40% elsewhere). Here that is ₹14,000 a month.
- HRA you receive₹20,000
- Rent minus 10% of basicthe least₹14,000
- 50% of basic (metro city)₹20,000
Read the full explanation
“Basic” here means basic pay plus dearness allowance (DA), if your pay has one. Special allowance, bonus and other allowances are left out. The three amounts are worked out for the same months, so a monthly figure and a yearly figure give the same answer.
With a ₹40,000 basic, ₹20,000 of HRA and ₹18,000 of rent, the three amounts are ₹20,000 (hra you receive), ₹14,000 (rent minus 10% of basic), ₹20,000 (50% of basic (metro city)). The smallest is ₹14,000, so ₹14,000 a month is tax free and ₹6,000 a month is taxed as salary.
This exemption exists only under the old tax regime. Your employer’s payslip shows the HRA you are paid; what is tax free is worked out on top of that, from the rent you declare.
02 Your rent
How Your Rent Changes The Exemption
Rent below 10% of your basic gives no exemption. After that, every extra rupee of rent adds a rupee of exemption, until another limit stops it at ₹20,000 a month.
Tax-free HRA a month, by rent
Read the full explanation
The picture keeps a ₹40,000 basic and ₹20,000 of HRA in Bengaluru and changes only the rent. While rent is the smallest amount, the exemption follows it; once the HRA you receive, or your city’s share of basic, is smaller, paying more rent changes nothing.
So the most you can shelter is capped by your pay, not by how much rent you pay. If your rent is already above the point where the exemption stops rising, a higher rent will not save more tax.
03 Metro cities
Which Cities Count As Metro
Eight cities get the 50% rate from 1 April 2026: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru. Every other city gets 40%.
- Mumbai
- Kolkata
- Delhi
- Chennai
- Hyderabadnew
- Punenew
- Ahmedabadnew
- Bengalurunew
Read the full explanation
Until FY 2025-26 only Delhi, Mumbai, Kolkata, Chennai counted as metro. From 1 April 2026 the list also includes Hyderabad, Pune, Ahmedabad, Bengaluru. If you live in one of these four, 50% of your basic, not 40%, can now count towards your HRA exemption.
The city that counts is the city where you live in rented housing, which can differ from where your office is. Gurugram, Noida and other cities near a metro are not metro cities themselves.
04 Old or new
HRA In The Old And The New Regime
The HRA exemption is available only in the old regime. In the new regime it is ₹0, however much rent you pay. On this example the exemption saves ₹34,944 a year at the 20% slab.
Old regime₹1,68,000tax-free HRA a year · saves about ₹34,944
New regime₹0tax-free HRA a year · saves nothing
Compare both regimes with your rent →
Read the full explanation
The old regime lets you subtract the exemption, 80C and other deductions from your income, with higher tax rates. The new regime has lower rates and almost no deductions. Which is better depends on all your deductions together, not on HRA alone.
The ₹34,944 is an estimate: the tax-free HRA times your slab rate, plus the 4% cess. It does not include surcharge, and it assumes you are in the slab you picked for all of the exempt amount.
05 Proof and PAN
Rent To Parents, Landlord PAN And Proof
You can claim HRA on rent paid to a parent if the rent is real. If your rent is above ₹1,00,000 a year (₹8,333 a month), your landlord’s PAN is needed.
- Rent agreement and receiptsEmployers usually ask for them
- Bank transfersProof the rent was actually paid
- Landlord’s PAN above ₹1,00,000 a yearThat is ₹8,333 a month
- Rent to a parentAllowed if genuine; the parent reports it as income
Read the full explanation
Sources agree on the PAN rule and on rent paid to parents. The details of what proof your employer accepts are theirs to set, so ask HR before the declaration date.
You tell your employer about your rent on Form 12BB, so that tax deducted from your salary already allows for the exemption. If you miss it, you can claim it when you file your return.
06 The chart
The Most HRA You Can Shelter, And The Rent It Takes
For each basic: the most tax-free HRA a month in a metro city and elsewhere, and the rent that takes all of it. Tap a figure to load it into the calculator.
| Basic | Metro: tax-free | Metro: rent needed | Other: tax-free | Other: rent needed |
|---|---|---|---|---|
| ₹15,000 | ₹9,000 | ₹7,500 | ||
| ₹25,000 | ₹15,000 | ₹12,500 | ||
| ₹40,000 | ₹24,000 | ₹20,000 | ||
| ₹60,000 | ₹36,000 | ₹30,000 | ||
| ₹1,00,000 | ₹60,000 | ₹50,000 |
The HRA is taken as 50% of basic in a metro city and 40% elsewhere, the share that is tax free when rent is high enough. Rent needed is that HRA plus 10% of basic.
07 Questions
Questions About HRA
How do I calculate HRA exemption?
Work out three amounts and take the smallest: the HRA you receive, your rent minus 10% of basic, and 50% of basic in a metro city (40% elsewhere). On a ₹40,000 basic with ₹20,000 of HRA and ₹18,000 of rent in Bengaluru, that is ₹14,000 a month.
How much HRA can be claimed?
As much as the smallest of those three amounts allows. With a ₹40,000 basic and ₹20,000 of HRA, the most that can ever be tax free is ₹20,000 a month, however high the rent goes.
What is “HRA received” in an HRA calculator?
The house rent allowance your employer pays you, as shown on your payslip or offer letter. It is the first of the three amounts, and the exemption can never be more than it.
Which cities get the 50% metro rate?
From 1 April 2026: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru. Earlier only Delhi, Mumbai, Kolkata, Chennai did. All other cities get 40%.
Is HRA exempt in the new tax regime?
No. The HRA exemption is only for the old regime. In the new regime the exempt amount is ₹0, and all of your HRA is taxed as salary.
How do I add HRA in an income tax calculator?
Enter your basic (with DA), the HRA you receive and your rent, and choose your city, as in this calculator. Then use the tax-free amount as a deduction in the old regime. The home page calculator does this for you when you enter your rent.
Do I need my landlord’s PAN to claim HRA?
Yes, if the rent you pay in a year is above ₹1,00,000 (₹8,333 a month). Below that it is not needed, though your employer may still ask for rent receipts.
Can I claim HRA on rent paid to my parents?
Yes, if the rent is real: it is actually paid, your parent receives it and reports it as income in their return. Keep a rental agreement and bank transfers as proof.
What if my rent is lower than 10% of my basic?
Then your rent minus 10% of basic is zero or negative, and none of your HRA is tax free. In this calculator the exemption shows as ₹0.
How much tax does the HRA exemption save?
The tax-free HRA multiplied by your highest slab rate, plus 4% cess. On the example here, ₹1,68,000 a year saves about ₹34,944 at the 20% slab.
Is this calculator for government employees?
The tax exemption works by the same formula, so you can use it for the exemption. It does not work out the amount of HRA a central government employee is paid, which is a percentage of basic pay set by the class of the city (the central govt salary calculator does that), or what HRA could be under the 8th Pay Commission (the 8th Pay Commission calculator shows it as projection math).
Sources
- Taxability and calculation of HRA (TaxGuru) (opens in a new tab)
- HRA exemption, section 10(13A) (CAclub) (opens in a new tab)
- Final Income-tax Rules 2026 notified (Upstox) (opens in a new tab)
- Pull request quoting the rule (GitHub) (opens in a new tab)
- Flash alert on the 2026 rules (KPMG) (opens in a new tab)
- HRA exemption: which cities qualify for 50% (TaxGuru) (opens in a new tab)
- Landlord’s PAN for HRA exemption (ClearTax) (opens in a new tab)
- HRA exemption rules 2026: documents, PAN, landlord (Patron Accounting) (opens in a new tab)
- Can I claim HRA on rent paid to parents? (Muktify) (opens in a new tab)