HRA calculator
How much of your HRA is tax-free, and which limit is holding you at that number.
Tax-free HRA a month (old regime)
₹17,000.00
- Tax-free HRA a year
- ₹2,04,000.00
- Taxable HRA a month
- ₹3,000.00
- Salary counted (basic + DA)
- ₹50,000.00
Your three limits (the smallest one wins)
- HRA you get₹20,000.00
- Rent minus 10% of salary₹17,000.00limiting
- 50% of salary (your city)₹25,000.00
Your rent is what limits you: the part of it above 10% of your salary is less than your HRA.
With rent of ₹25,000.00 a month, your full HRA of ₹20,000.00 would be exempt, ₹3,000.00 more a month. This is only to show how the rule works: claim the rent you really pay.
Compare with the new regime
The new tax regime has lower rates but allows no HRA exemption and most other deductions. The old regime lets you claim HRA, 80C and more. This check compares the tax on your salary under both, so you can see which one leaves you better off.
- Salary for the year
- ₹8,40,000.00
- Old regime tax (with your HRA)
- ₹30,888.00
- New regime tax
- ₹0.00
The new regime leaves you ₹30,888.00 more a year.
Salary income only, FY 2026-27 slabs, standard deduction, rebate, surcharge and 4% cess. Professional tax, other income and capital gains are not included. The Salary Calculator uses the same rules.
The new tax regime allows no HRA exemption: your full HRA is taxable there. Worked out from rule 279 of the Income-tax Rules 2026 (FY 2026-27) and the earlier four-city rule (FY 2025-26). Bonus, other allowances, commission, part-year stays and rent paid to a relative are not covered. An estimate, not tax advice; your employer's payroll may apply the rules a little differently. Rules checked November 2026.
Tax-free HRA ₹17,000.00 a month (₹2,04,000.00 a year), old regime, FY 2026-27, Delhi (50% of salary). Taxable HRA ₹3,000.00 a month. An estimate, not tax advice. kaamsolv.com/hra-calculator
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How it works
- 1
Enter your pay
Basic salary, DA if it is part of your pay, the HRA you receive and the rent you pay. Monthly or yearly, as you prefer.
- 2
Pick your city and year
The city decides whether the cap is 50% or 40% of salary. The list of 50% cities changed from FY 2026-27.
- 3
Read the answer
The tax-free amount, what is taxable, and which of the three limits is holding you at that number.
Questions
How is HRA exemption calculated?
It is the least of three amounts: the HRA you receive, your rent minus 10% of your salary, and 50% of salary in the named cities (40% elsewhere). For a basic of ₹6,00,000 a year, HRA of ₹2,40,000 and rent of ₹1,80,000 in a 50% city, the three amounts are ₹2,40,000, ₹1,20,000 and ₹3,00,000, so ₹1,20,000 is tax-free.
Which cities get the 50% limit?
From FY 2026-27 (from 1 April 2026), eight: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad, under rule 279 of the Income-tax Rules 2026. Up to FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai got 50%. Every other place is 40%.
Can I claim HRA exemption in the new tax regime?
No. The new regime allows no HRA exemption, so your full HRA is taxable there. The old regime lets you claim it. The comparison on this page shows the tax on your salary under both.
What counts as salary for HRA?
Basic pay, plus dearness allowance (DA) if it is provided for under your terms of employment. Bonus, other allowances and perquisites are left out. If your payslip shows a DA that is part of pay, enter it.
What if I pay no rent or live in my own home?
Then there is no exemption. HRA is tax-free only against rent you really pay for the home you live in.
Do I need rent receipts?
Employers usually ask for rent receipts or a rent agreement as proof, and there can be extra requirements at higher rents. Ask your payroll team what they need. KaamSolv has a free Rent Receipt Generator if you need receipts.
Why is my payslip different from this calculator?
Payroll teams may count salary differently, apply the rule from a different month, or handle part-year stays and rent paid to relatives their own way. This tool follows the rule for a full year at one address.
Is my information sent anywhere?
No. It is worked out in your browser and nothing is sent or saved, which is also why there is no share link with your numbers in it.