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HRA Exemption Calculator
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Show formula & working
Exempt HRA = least of (a) HRA received, (b) rent paid − 10% of salary, (c) 50% of salary in the eight cities or 40% elsewhere — salary = basic + DA, for the months of rent
Details
House rent allowance exemption (old regime): rates and rules as of 20-Mar-2026 · Source: Income-tax Rules, 2026 (G.S.R. 198(E), 20 Mar 2026), rule 279, for Income-tax Act, 2025 Schedule III Table Sl. 11 — least of HRA received, rent paid minus 10% of salary, and 50% (eight cities) or 40% of salary. Every figure based on it stays editable.
How this works
Part of your HRA is tax-free if you pay rent for a home you do not own. The tax-free part is the smallest of three amounts.
From the tax year 2026-27 the 50% limit covers Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru (Income-tax Rules, 2026, rule 279).
HRA exemption is not available under the new regime.
Frequently asked questions
Is HRA exempt in the new regime?
No. Only the old regime allows it.
Can I pay rent to my parents?
Rent paid to a parent who owns the home can qualify if it is genuinely paid and the parent shows it as rental income.
What if I don't get HRA?
Then this exemption does not apply; other deductions for rent may apply under the old regime subject to conditions.
Questions about your tax?
Talk to Rytvae about investments that fit your goals and your tax regime.