Cubestack

HRA Calculator

Free HRA exemption calculator — work out how much of your house rent allowance is tax-free under the old tax regime, and how much is taxable.

City where you rent

Tax-free HRA (a month)

₹13,000

₹1,56,000 a year

Exemption is the least of

  • Actual HRA received₹20,000
  • Rent paid minus 10% of salaryleast₹13,000
  • 50% of salary (metro)₹25,000

Salary used: ₹50,000 (basic + DA + commission)

HRA received
₹20,000
Taxable HRA
₹7,000

Old tax regime only. If you choose the new tax regime, HRA is fully taxable.

Rule used: the tax-free part of HRA is the least of (a) the HRA you actually received, (b) rent paid minus 10% of salary, and (c) 50% of salary in a metro city or 40% elsewhere. Salary here means basic pay, plus dearness allowance if it counts for retirement benefits, plus commission fixed as a percentage of turnover.

Metro cities: for FY 2025-26 (Income-tax Act, 1961) the 50% limit applies only to Delhi, Mumbai, Kolkata and Chennai, as listed on the Income Tax Department's "Employees - Benefits allowable" page. From tax year 2026-27, under the Income-tax Act, 2025, the department's own HRA calculator (incometaxindia.gov.in) also gives 50% for Bengaluru, Hyderabad, Pune and Ahmedabad. We could not read the notified text of the Income-tax Rules, 2026 itself, so check the rule there if your claim depends on it.

The tool assumes your salary, HRA and rent stay the same for the whole period. If any of them changed during the year, the exemption is worked out separately for each part of the year and added up. If the rent you pay is more than ₹1 lakh a year, your employer will ask for your landlord's PAN.

This is an estimate only and not tax advice.

What is the HRA Calculator?

HRA (house rent allowance) is the part of your salary meant for rent. Under the old tax regime, some or all of it is tax-free if you live in a rented home and pay rent. This calculator works out the tax-free amount and the taxable balance using the least-of-three rule.

Pick the tax year, choose monthly or yearly amounts, select your city, then enter basic salary, dearness allowance, any turnover-based commission, HRA received and rent paid. The result shows all three limits with the smallest one marked, the tax-free HRA and the taxable HRA.

How to use it

  1. 1

    Pick the year

    Choose 2026-27 onwards or FY 2025-26.

  2. 2

    Choose the period

    Enter amounts per month or per year.

  3. 3

    Select your city

    Pick the city where your rented home is.

  4. 4

    Enter salary and rent

    Fill in basic salary, DA, any commission, HRA received and rent paid.

  5. 5

    Read the result

    Check the tax-free HRA, the taxable HRA and which limit applied.

Features

  • All three limits shown

    Actual HRA, rent minus 10% of salary, and 50% or 40% of salary are listed side by side, with the least one highlighted.

  • Updated metro list

    From tax year 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad get the 50% limit along with Delhi, Mumbai, Kolkata and Chennai.

  • FY 2025-26 option

    Switch to FY 2025-26 to use the older four-city list for last year's return.

  • Monthly or yearly

    Enter amounts per month or per year; monthly results also show the yearly figure.

  • Taxable HRA

    See how much of the HRA you received will be added to your taxable salary.

Popular uses

  • Choosing a tax regime

    See how much HRA exemption you would give up by moving to the new regime.

  • Declaring rent to your employer

    Estimate the exemption before you submit rent receipts.

  • Moving to a new city

    Compare the exemption in a metro and a non-metro city.

  • Checking Form 16

    Match the HRA exemption your employer applied against your own figure.

Frequently asked questions

How is HRA exemption calculated?

The tax-free part is the least of three amounts: the HRA you actually received, rent paid minus 10% of salary, and 50% of salary in a metro city or 40% elsewhere. Salary means basic pay, plus DA if it counts for retirement benefits, plus commission fixed as a percentage of turnover.

Which cities count as metro for HRA?

For FY 2025-26, only Delhi, Mumbai, Kolkata and Chennai. From tax year 2026-27, under the Income-tax Act, 2025, the Income Tax Department's HRA calculator also gives 50% for Bengaluru, Hyderabad, Pune and Ahmedabad.

Can I claim HRA in the new tax regime?

No. HRA exemption is available only under the old tax regime. In the new regime the full HRA is taxable.

What if my rent is less than 10% of my salary?

Then rent minus 10% of salary is zero, so no HRA is exempt and the whole allowance is taxable.

Do I need my landlord's PAN?

If the rent you pay is more than ₹1 lakh a year, you need to give your landlord's PAN to your employer.

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