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Old or new tax regime: a simple way to choose
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HRA exemption calculator
How much of your house rent allowance is tax-free in Tax year 2026-27. The HRA exemption is available only under the old regime.
Result
Exempt HRA for the year
₹1,56,000
- Taxable HRA
- ₹84,000
- added to your salary income
- Exempt a month
- ₹13,000
The exemption is the lowest of these
| Limit | Amount |
|---|---|
| Actual HRA received | ₹2,40,000 |
| Rent paid minus 10% of salary (applies) | ₹1,56,000 |
| 50% of salary (listed city) | ₹3,00,000 |
What limits your exemption
The rent limit is the lowest. Exemption would reach its ceiling at a rent of ₹25,000 a month.
How this is calculated
Exempt HRA = least of (HRA received, rent − 10% of salary, 50% or 40% of salary)
- 50% for Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad; 40% elsewhere
- Salary = basic + DA that counts for retirement benefits + commission as a fixed share of turnover
Assumptions and limits
- Salary, HRA and rent stayed the same for the months entered. If any changed during the year, work out each period separately and add them up.
- You don't own a house in the city where you live and pay rent.
- Your employer may ask for rent receipts, the rental agreement and your landlord's PAN, and the return asks whether the landlord is a relative.
- Under the new regime there is no HRA exemption; all HRA is taxable.
Income-tax Rules, 2026, for Tax year 2026-27.
Sources: Income-tax Rules, 2026 – HRA exemption for eight cities (ClearTax summary)
This calculator gives an educational estimate from the values you enter. It isn't personalised financial, tax or investment advice. Rates, rules and your own situation can change the result. Read the disclaimer