How much of your HRA is tax-free?
If you live in a rented home and get House Rent Allowance, part of it is exempt from tax under the old regime. The exempt amount is the least of: your actual HRA, rent paid minus 10% of salary, and 50% of salary if you rent in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad or Bengaluru, or 40% anywhere else. From FY 2026-27 the rule is Schedule III of the Income-tax Act, 2025 and rule 279 of the Income-tax Rules, 2026, which added Hyderabad, Pune, Ahmedabad and Bengaluru. For FY 2025-26 it is section 10(13A) of the 1961 Act, under which only Mumbai, Kolkata, Delhi and Chennai get 50%. This calculator works it out for either year — entirely in your browser.
Who uses this tool
Salaried employees figuring out how much HRA they can declare tax-free, HR teams explaining take-home to new joiners, and anyone in a pay-and-claim HRA arrangement who needs to know the taxable portion before filing.
How to use it
- Pick the financial year: FY 2026-27, or FY 2025-26 if you are revising a return you filed for it by the due date.
- Enter your annual basic salary (and DA if any).
- Enter the HRA you received and the total rent you paid for the year.
- Pick the city you rent in and click Calculate to see your tax-free and taxable HRA.
Frequently asked questions
How is HRA exemption calculated?
It's the least of: actual HRA received; rent paid − 10% of salary (basic + DA); and 50% of salary in the cities the rules name, or 40% anywhere else.
Which cities get 50% of salary?
From FY 2026-27, eight: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru (rule 279 of the Income-tax Rules, 2026). For FY 2025-26 only Mumbai, Kolkata, Delhi and Chennai did. Anywhere else, 40%.
Can I claim HRA in the new tax regime?
No — HRA exemption is available only under the old regime. Use our Income Tax Calculator to compare regimes.
Can I claim HRA in a late return?
Not if you have no business income. HRA exemption exists only in the old tax regime, and without business income the old regime can be chosen only in a return filed by the due date. A late return, or a revision of one, is taxed under the new regime.
Do I need rent receipts?
Yes — keep rent receipts (and report the landlord's PAN if yearly rent exceeds ₹1,00,000). Generate them with our Rent Receipt Generator.