HRA calculator
The tax-free part of your HRA from basic pay and rent, the rent that makes it fully tax-free, and what to give your employer.
PrivateNo uploadsRuns in your browserDearness allowance, if your payslip has it.
Tax-free HRA in the year
₹2,04,000
₹17,000 a month
- 1. HRA you get
- ₹2,40,000
- 2. Rent minus 10% of salarysmallest, so this applies
- ₹2,04,000
- 3. 50% of salary (50% city)
- ₹3,00,000
- Taxable HRA
- ₹36,000
- Tax you saveat 30% plus 4% cess
- ₹63,648
With rent of ₹25,000 a month, the most HRA your salary allows would be tax-free.
Only in the old tax regime. In the new regime all HRA is taxed.
Rates as of 13 Nov 2026: 50% cities for FY 2026-27 under the Income-tax Rules, 2026: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. FY 2025-26: Mumbai, Delhi, Kolkata, Chennai.
What to give your employer
- Rent receipts for each month, signed by the landlord, or the rent agreement with bank transfer proof.
- Landlord's PAN is needed: your rent is ₹2,64,000 this year, more than ₹1 lakh.
- Landlord's name and address, and how you are related if you rent from family.
- Your choice of the old regime, so the employer leaves the tax-free HRA out of monthly TDS.
Monthly and yearly
| Item | A month | For 12 months |
|---|---|---|
| 1. HRA you get | 20,000 | 2,40,000 |
| 2. Rent minus 10% of salary | 17,000 | 2,04,000 |
| 3. 50% of salary (50% city) | 25,000 | 3,00,000 |
| Tax-free HRA | 17,000 | 2,04,000 |
| Taxable HRA | 3,000 | 36,000 |
How it is calculated
Tax-free HRA = least of (HRA, rent − 10% of salary, 50% or 40% of salary)
Salary is basic pay plus DA for the months you paid rent. The 50% applies in the big cities, 40% everywhere else. Whatever HRA is left over is added to your taxable salary.
Example: Bengaluru, FY 2026-27, basic ₹50,000, HRA ₹20,000 and rent ₹20,000 a month. In a year: HRA ₹2,40,000; rent ₹2,40,000 − 10% of ₹6,00,000 = ₹1,80,000; 50% of salary ₹3,00,000. The smallest is ₹1,80,000, so that much is tax-free and ₹60,000 is taxed. Raising rent to ₹25,000 would make all ₹2,40,000 tax-free.
How to calculate HRA exemption
Enter pay and rent
Type your monthly basic pay, DA, the HRA in your payslip and the rent you pay.
Pick the city and year
Choose where you live and the financial year. Set the months if you rented for part of the year.
See your tax-free HRA
Read the exempt and taxable HRA, monthly and yearly, which limit applies, and the rent that makes all of it tax-free.
Good to know
- Pay rent by bank transfer, not cash, so you have proof if the tax office asks.
- If HRA is tax-free only in part, the rent hint shows the rent at which all of it would be.
- Moved city in the year? Work out each part separately with its own months and add them.
- Choose the old regime only if HRA and other deductions together beat the lower new slabs.
- Every input is kept in the page link, so Copy link shares the exact figures.
Where people use it
Declare rent at work
Know the tax-free HRA before you submit proofs to payroll.
Choosing a flat
See how the rent changes your tax-free HRA and take-home pay.
Renting from parents
Work out the exemption on rent paid to your parents, with the proof you need.
Old or new regime
Put the tax-free HRA into the income tax calculator to compare both regimes.
Income tax calculator FY 2026-27Rent receipts
Make a receipt for each month to give your employer.
Rent receipt generator for HRA
Why this one
It shows the rent that would make your whole HRA tax-free and the tax that saves, not only today's exemption.
- The three limits side by side, with the one that applies marked.
- Eight 50% cities from FY 2026-27.
- The rent that makes all your HRA tax-free.
- A checklist of what to give your employer.
What you can change
- Basic, DA, HRA and rent
- City and financial year
- Months of rent
- Tax slab
People find this page by searching
- hra calculator
- hra exemption calculator
- hra exemption rules 2026
- hra calculation formula
- hra metro cities list
- hra for bangalore 50%
- how much rent to claim full hra
- hra in new tax regime
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Questions people ask
How is the HRA exemption worked out?
The tax-free part is the smallest of three: the HRA you got, the rent you paid minus 10% of salary, and 50% of salary in the big cities (40% elsewhere). Salary here means basic pay plus DA. The rest of your HRA is taxed.
Which cities get 50%?
From FY 2026-27: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Up to FY 2025-26 only Mumbai, Delhi, Kolkata and Chennai. Every other place gets 40%.
Can I claim HRA in the new tax regime?
No. HRA exemption is only in the old regime. In the new regime all of your HRA is taxed, but the slabs are lower. Use the income tax calculator to see which regime leaves you more.
What do I give my employer?
Rent receipts for each month (or a rent agreement and bank transfer proof), the landlord's name and address, and the landlord's PAN if the rent is more than ₹1 lakh in the year. Your employer then leaves the tax-free part out of TDS.
Can I pay rent to my parents and claim HRA?
Yes, if you really pay rent to them, they own the house, and they show the rent as their income. Keep bank transfer proof. You cannot claim HRA for rent paid to your spouse.
What if I did not give proof to my employer in time?
You can still claim the HRA exemption when you file your tax return in the old regime, as long as you have the rent receipts and proofs.