HRA Exemption Calculator
Calculate the exempt and taxable parts of HRA for an unchanged salary-and-rent period, using the applicable year and city classification.
- Separate exempt and taxable HRA
- 2025–26 and 2026–27 city rules
- Old/new regime distinction included
The three limits
Eligible HRA exemption is the smallest of actual HRA received, 50% or 40% of eligible salary, and actual rent minus 10% of eligible salary. Negative rent-minus-salary values are treated as zero. Eligible salary includes basic pay, retirement-benefit DA and turnover-based commission.
Choose the correct year and rented city
For 2025–26, the 50% cities are Delhi, Mumbai, Kolkata and Chennai. For tax year 2026–27, Ahmedabad, Bengaluru, Hyderabad and Pune also join that list under the notified 2026 rules. Other cities use 40%. The new tax regime does not permit HRA exemption.
Example with a change in city treatment
With basic pay ₹50,000, HRA ₹25,000 and rent ₹28,000 per month in Bengaluru, the rent-minus-10% limit is ₹23,000. The 2025–26 salary cap is ₹20,000, giving ₹20,000 exemption. In 2026–27 the cap is ₹25,000, so the exemption becomes ₹23,000 per month.
Changes during the year
Run separate calculations when salary, HRA, rent or city changes, then add the period amounts. Do not annualise unrelated periods under a single cap. Keep your payment records and employer-required evidence. This figure is an exemption component, not tax saved and not confirmation that a claim will be accepted.
Technical references: KPMG: notified Income-tax Rules 2026, 30 March 2026 · Income Tax Department: old and new regime FAQs