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The tax-free part of your house rent allowance, which limit decides it, and the rent that would maximise it.
Non-metro for this year: 40% HRA limit.
Fill in your details, then press Calculate to see the result.
House rent allowance is part of many salary packages. If you live in rented accommodation, part or all of it can be tax-free in the old regime. How much depends on three numbers: the HRA itself, the rent you pay, and your basic salary plus DA, along with whether your city counts as a metro.
The Income-tax Rules 2026 doubled the metro list from four cities to eight, which raises the limit from 40% to 50% of basic + DA for anyone renting in Bengaluru, Pune, Hyderabad or Ahmedabad.
The yearly HRA exemption for basic + DA of ₹50,000 a month and HRA of ₹25,000 a month (₹3 lakh a year), at different rents, in a metro and outside one:
| Rent a month | Tax-free HRA, metro | Tax-free HRA, other city | Taxable HRA, metro |
|---|---|---|---|
| ₹10,000 | ₹60,000 | ₹60,000 | ₹2,40,000 |
| ₹15,000 | ₹1,20,000 | ₹1,20,000 | ₹1,80,000 |
| ₹20,000 | ₹1,80,000 | ₹1,80,000 | ₹1,20,000 |
| ₹25,000 | ₹2,40,000 | ₹2,40,000 | ₹60,000 |
| ₹30,000 | ₹3,00,000 | ₹2,40,000 | ₹0 |
| ₹40,000 | ₹3,00,000 | ₹2,40,000 | ₹0 |
Up to ₹30,000 rent, the rent decides the exemption: every extra ₹1,000 of rent makes ₹12,000 a year tax-free. Beyond that, the HRA itself is the limit.
HRA is exempt only in the old regime. To see whether it makes the old regime worth it, use the Salary Tax Planner or the Old Regime Tax Calculator.
Yearly figures, from monthly salary, HRA and rent × 12.
| Renter | Tax-free HRA | Taxable HRA |
|---|---|---|
| Mumbai: basic ₹60k, HRA ₹30k, rent ₹35k a month | ₹3,48,000 | ₹12,000 |
| Delhi: basic ₹60k, HRA ₹30k, rent ₹15k a month | ₹1,08,000 | ₹2,52,000 |
| Bengaluru: basic ₹50k, HRA ₹25k, rent ₹30k a month | ₹3,00,000 | ₹0 |
| Other city: basic ₹50k, HRA ₹20k, rent ₹20k a month | ₹1,80,000 | ₹60,000 |
Rent is often the limit: the Delhi renter pays little rent, so most of the HRA is taxable. The Bengaluru renter gets the full HRA tax-free in FY 2026-27; a year earlier, the 40% limit would have capped the exemption at ₹2,40,000.
Basic + DA ₹50,000 a month, HRA ₹25,000 a month, rent ₹25,000 a month in Bengaluru (a metro from FY 2026-27). For the year, the least of:
So ₹2.4 lakh is tax-free and ₹60,000 is taxed. On a ₹15 lakh salary in the old regime, that saves ₹74,880.
Your HRA plus 10% of basic + DA, as long as the HRA is within 50% of basic + DA (40% outside the metros).
It is the least of three amounts: the HRA you actually received; rent paid minus 10% of basic + DA; and 50% of basic + DA in a metro city (40% elsewhere). Whatever HRA is left over is taxable.
Under the Income-tax Rules 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Until FY 2025-26 only the first four qualified.
No. The HRA exemption is available only in the old regime. In the new regime the full HRA is taxable.
Yes, if the rent is genuine: a rent agreement, payment by bank transfer, and your parents reporting the rent as income. From FY 2026-27 you must also disclose your relationship with the landlord. Rent to a spouse is generally not accepted.
Yes, if the rent is more than ₹1 lakh a year (about ₹8,333 a month), your employer will ask for the landlord's PAN.
Then you can't claim HRA, because you don't pay rent. If you have a home loan on it, the old regime lets you deduct interest instead.
Basic pay plus dearness allowance if it counts for retirement benefits, plus commission fixed as a percentage of turnover. Other allowances and perquisites are excluded.
Yes. You can claim the exemption in your income tax return and get the excess TDS back as a refund. Keep the rent receipts and agreement in case of a query.
The law doesn't insist on a rent agreement, and employers usually accept rent receipts. Cash rent is allowed but is weak proof if the tax department asks; paying by bank transfer and keeping a signed agreement is the safe way. If your rent is over ₹1 lakh a year, you also need the landlord's PAN.
Yes, if you both get HRA. Each of you claims on the share of rent you actually pay, ideally from your own bank account and shown on the receipts. Together you can’t claim more than the rent paid, so don’t both claim the full amount.
Only the months you paid rent count. The three limits are applied to those months, and HRA received in the other months is fully taxable. If your rent or salary changed during the year, the exemption is worked out separately for each period and added up.
Yes. Rent paid to a non-resident landlord needs TDS before you pay it, at about 31.2% including cess (less if a tax treaty certificate is given), whatever the amount. You need a TAN to deduct and deposit it. Your HRA exemption itself is worked out the same way.
Yes, in the old regime, through 80GG (section 134 of the 2025 Act): the least of ₹5,000 a month, 25% of your adjusted total income, and rent minus 10% of that income. You can't claim it if you, your spouse or minor child own a home in the city where you live and work.
For the period entered, the calculator multiplies the monthly figures by the number of months, then takes the least of: HRA received, rent paid minus 10% of basic + DA, and 50% (metro) or 40% of basic + DA. The metro list comes from the selected year's rules.
Tax saved is the exempt amount × your chosen slab rate × 1.04 (cess). It's an estimate; your actual saving depends on the rest of your income.
HRA exemption
min(HRA, rent − 0.1 × (basic + DA), 0.5 or 0.4 × (basic + DA))
Rent for the full exemption
min(HRA, 0.5 or 0.4 × (basic + DA)) + 0.1 × (basic + DA)
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Tax figures follow the Income-tax Act rules for the tax year you select, as we read them, and simplify some edge cases (such as rare surcharge and set-off situations). Tax law changes with every Budget, so check your final numbers with a chartered accountant or the Income Tax Department's e-filing portal before you file.