HRA Exemption Calculator
Work out how much of your house rent allowance is tax free in the old regime, for FY 2025-26 and FY 2026-27.
Your HRA exemption
| The exemption is the lowest of these three | Per year |
|---|
HRA exemption is available only in the old tax regime, and only if you receive HRA and actually pay rent. It is an estimate. Please check the final figure with your employer and a Chartered Accountant. For FY 2026-27 the 50% list follows the Income-tax Rules, 2026, so confirm the notified rules and your employer payroll declaration.
How HRA exemption is worked out
The exempt amount is the lowest of these three figures:
- The actual HRA you receive from your employer
- Rent you pay, minus 10% of your salary (basic + DA)
- 50% of your salary if you live in a metro city, otherwise 40%
Whatever is left of your HRA after the exemption is added to your taxable salary.
Things to keep in mind
- Keep rent receipts and the rent agreement
- Give your landlord PAN to your employer if yearly rent is more than 1,00,000
- Pay rent through bank transfer so there is a record
- Claim in the old regime, where HRA is allowed
- Claiming HRA in the new regime, where it is not allowed
- Using gross salary instead of basic + DA
- Claiming rent that you did not actually pay
- Using the wrong city category
If you pay rent but do not receive HRA, you may be able to claim a deduction under section 80GG in the old regime. Send us your salary slip and rent details and we will work out the best way to claim.
