How to use the HRA calculator
- Enter your monthly basic salary plus dearness allowance, the HRA on your payslip and the rent you pay.
- Choose your city. Since 1 April 2026, eight cities get the higher 50% limit: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
- If you rented for only part of the year, change the number of months.
How HRA exemption is worked out
The tax-free part of your HRA is the lowest of these three amounts:
- The HRA your employer actually pays you.
- Rent paid minus 10% of basic + DA.
- 50% of basic + DA in the eight cities above, or 40% anywhere else.
The rest of your HRA is taxed as salary. HRA exemption is available only under the old tax regime – under the new regime all HRA is taxable.
The three amounts are ₹20,000, ₹13,000 (₹18,000 − ₹5,000) and ₹25,000. The lowest is ₹13,000, so ₹1,56,000 a year is exempt and ₹84,000 is taxable.
Paying more rent raises the exemption until it reaches the next limit. To see whether the old regime with HRA beats the new regime, use the income tax calculator.
Frequently asked questions
Which cities get 50% HRA exemption?
From 1 April 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Everywhere else the limit is 40% of basic + DA.
Can I claim HRA in the new tax regime?
No. HRA exemption is only available under the old regime. Under the new regime the full HRA is taxed.
Can I claim HRA if I pay rent to my parents?
Yes, if you really pay them rent and they own the house. They must show the rent as income in their tax return. You cannot pay rent to your spouse.
Do I need my landlord’s PAN?
Yes, if your rent is more than ₹1 lakh a year. Keep rent receipts or a rent agreement as proof.
What if I don’t get HRA from my employer?
Self-employed people and employees without HRA can claim a smaller deduction for rent under the old regime (Section 80GG), up to ₹5,000 a month.