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HRA exemption calculator

If you pay rent and get HRA, part of it is tax-free in the old regime. The exempt amount is the lowest of three numbers — this shows all three, and which one is limiting you.

₹
₹50 thousand
₹
₹20 thousand
₹
₹25 thousand
Tax-free HRA this year
₹2,40,000
₹20,000 a month · ₹0 of your HRA stays taxable

The lowest of three limits wins

HRA actually received₹2,40,000
Your exemption
Rent paid minus 10% of basic₹2,40,000
50% of basic₹3,00,000
Tax saved at 20% slab
₹49,920
Tax saved at 30% slab
₹74,880
Your HRA is the limit. A higher HRA component in your salary would raise the exemption.
HRA exemption is only available in the old tax regime. Compare both with the regime calculator.
How it’s calculated

The maths, in plain words

Limit 1

The HRA your employer actually pays you.

Limit 2

Rent you pay minus 10% of your basic salary.

Limit 3

50% of basic if you live in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad; 40% anywhere else. The four new cities were added from FY 2026-27.

Questions

People also ask

Your inputs stay on this device. Use Copy link to save or share a calculation.

Is HRA exempt in the new tax regime?
No. HRA exemption is available only if you choose the old regime.
Which cities get 50% HRA from 2026?
From FY 2026-27, eight cities: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Everywhere else the limit is 40% of basic.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay them rent and they show it as income. Keep a rent agreement and bank-transfer records. Paying rent to a spouse is not accepted.
Do I need my landlord’s PAN?
If your annual rent is above ₹1 lakh, your employer will ask for the landlord’s PAN.
Understand it

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