India HRA Exemption
Find the tax-free part of your house rent allowance (HRA) and the taxable remainder under the old regime.
India — Income-tax Act, 2025, section 11 with Schedule III (Table: Sl. No. 11) (old section 10(13A)) and the Income-tax Rules, 2026. Rules in force on 10/24/2026.
Estimate for guidance only: check the official sources or a licensed professional before relying on it.
Related calculators: Income tax, new vs old regime CTC to in-hand salary
Frequently asked questions
Which cities get the 50% limit from April 2026?
Delhi, Mumbai, Kolkata and Chennai as before, plus Bengaluru, Hyderabad, Pune and Ahmedabad under the Income-tax Rules, 2026. Every other city uses 40%.
What counts as salary for HRA?
Basic salary, dearness allowance when it counts for retirement benefits, and commission paid as a fixed percentage of turnover. HRA itself, special allowances and bonuses do not count.
Can I claim HRA in the new regime?
No. Under section 202 (old 115BAC) the HRA exemption is not allowed, so the whole HRA is taxed. Compare both regimes before you decide.
Can I claim HRA if I pay rent to my parents?
Yes, if you really pay the rent and your parent owns the house and declares the rent as income. Paying rent to your spouse is usually not accepted.
How the HRA exemption calculator works
This calculator is for salaried employees in India who choose the old tax regime and receive a house rent allowance (HRA). It shows how much of your HRA is exempt from income tax and how much is added to your taxable salary for tax year 2026-27. The legal basis is section 11 read with Schedule III (Table: Sl. No. 11) of the Income-tax Act, 2025, which replaces the old section 10(13A), together with the Income-tax Rules, 2026. Enter your monthly basic salary, dearness allowance, commission, HRA and rent, choose your city and the number of months you paid that rent, and the page returns the exempt and taxable amounts for the period and per month.
The exempt part is the least of three amounts: the actual HRA you received, the rent you paid minus 10% of your salary, and 50% of your salary in a metro city or 40% elsewhere. Salary means basic pay, dearness allowance when it counts for retirement benefits, and commission paid as a fixed percentage of turnover. The eight metro cities are Delhi, Mumbai, Kolkata, Chennai and, from 1 April 2026, Bengaluru, Hyderabad, Pune and Ahmedabad. If your rent or salary changed during the year, run the calculator once for each period and add the results.
Example: you live in Delhi with a basic salary of ₹40,000 and HRA of ₹20,000 a month, and you pay ₹22,000 rent for 12 months. Salary is ₹4,80,000, the actual HRA is ₹2,40,000, rent minus 10% of salary is ₹2,64,000 minus ₹48,000, which is ₹2,16,000, and 50% of salary is ₹2,40,000. The lowest is ₹2,16,000, so that amount is exempt and ₹24,000 is taxable; the rent limit applies. This is an estimate: above ₹1 lakh of rent a year your employer needs your landlord's PAN, and the new regime gives no HRA exemption.