HRA Exemption Calculator FY 2026-27
Work out how much of your House Rent Allowance is tax-free. Uses the new 8-city metro list from FY 2026-27, with earlier years available for past returns.
- 8-metro rule for 2026-27
- Previous years too
- Monthly or yearly
- Least-of-three breakup
Not an official government calculator. This free tool is only to make your HR and payroll work easier. Tax and labour rules change every year, so treat results as estimates and verify with the official notification or your CA before filing or paying. Rules last reviewed on 23 October 2026.
HRA Exemption Calculator
Include DA only if it counts for retirement benefits, plus any turnover-based commission.
Exemption is the least of
- Actual HRA received
- ₹20,000
- Rent paid − 10% of salary
- ₹13,000
- 40% of salary (non-metro)
- ₹20,000
- Exempt HRA
- ₹13,000
HRA metro cities by year
| Financial year | 50% of salary | 40% of salary |
|---|---|---|
| FY 2026-27 | Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad | All other cities |
| FY 2025-26 | Delhi, Mumbai, Kolkata, Chennai | All other cities |
| FY 2024-25 | Delhi, Mumbai, Kolkata, Chennai | All other cities |
HRA calculation example
Priya lives in Pune and earns Basic + DA of ₹50,000 a month and HRA of ₹25,000. She pays rent of ₹22,000 a month.
- Actual HRA: ₹25,000
- Rent − 10% of salary: ₹22,000 − ₹5,000 = ₹17,000
- 50% of salary (Pune from FY 2026-27): ₹25,000 — earlier it was 40% = ₹20,000
Exempt HRA = ₹17,000 a month (₹2,04,000 a year); the remaining ₹8,000 a month is taxable. Here rent is the limiting factor, so the new metro status does not change her exemption — but it would if she paid more rent.
Check whether HRA makes the old regime worthwhile with the income tax calculator.
Frequently Asked Questions
How is HRA exemption calculated?
The exempt HRA is the lowest of three amounts: (1) actual HRA received, (2) rent paid minus 10% of salary, and (3) 50% of salary in specified metro cities or 40% elsewhere. Salary here means Basic + DA (forming part of retirement benefits) + turnover-based commission.
Which cities get 50% HRA exemption in FY 2026-27?
From FY 2026-27 (Tax Year 2026-27 under the Income-tax Act, 2025 and the Income-tax Rules, 2026), eight cities qualify: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Up to FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai qualified.
Can I claim HRA in the new tax regime?
No. HRA exemption is available only in the old tax regime. If you pay high rent, compare both regimes with the income tax calculator before choosing.
Do I need my landlord's PAN for HRA?
Yes, if the rent paid exceeds ₹1 lakh in a year, employers require the landlord's PAN. Keep rent receipts and the rent agreement as proof.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent and your parents own the house and show the rent as income in their return. You cannot claim HRA for rent paid to your spouse.
Is this an official HRA calculator?
No. It is a free, unofficial tool by XoMB HR. Rules can change every year, so confirm with the Income Tax Department or your CA.
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This is not an official calculator of the Government of India, the Income Tax Department, EPFO, ESIC or any state government. It is a free tool by XoMB Technologies to make everyday HR work easier. Rules, rates and limits change every year through budgets, notifications and court rulings, and your organisation's policy may differ. Results are estimates only and are not legal, tax or financial advice — confirm with the official source or a qualified CA / labour law consultant before acting. Rules last reviewed on 23 October 2026.