HRA Exemption Calculator
How much of your house rent allowance is tax-free under the old regime, and the tax it saves, with the eight 50% cities from FY 2026-27
HRA exempt a year
₹1,20,000
- Exempt a month
- ₹10,000
- Taxable HRA a year
- ₹1,20,000
- Tax saved a year (30% slab)
- ₹37,440
Old regime only. Under the new regime all HRA is taxable.
The least of three, a month
- HRA received
- ₹20,000
- Rent paid minus 10% of salary (applies)
- ₹10,000
- 50% of salary
- ₹25,000
- Exempt
- ₹10,000
Rates as per Union Budget 2026 (no change to rates) · Income-tax Act, 2025 · verified 2026-08-13. Figures apply to tax year 2026-27. The Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026 and renumbers sections; rates are unchanged. This tool is an estimate, not tax advice.
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How this is calculated
Formula
exempt = least of (HRA received, rent − 10% of salary, 50% or 40% of salary)
With your numbers
- 1Salarybasic × (1 + DA%)₹50,000 × (1 + 0%) = ₹50,000
- 2HRA received₹20,000
- 3Rent paid minus 10% of salary₹10,000
- 450% of salary₹25,000
- 5Exempt a yearleast × 12₹10,000 × 12 = ₹1,20,000
- 6Tax savedexempt × slab × (1 + cess)₹1,20,000 × 31.2% = ₹37,440
- 50% cities for FY 2026-27 (Tax Year 2026-27): Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad.
- Worked month by month as payroll does; a rent or salary change mid-year changes the months after it.
Frequently Asked Questions
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