HRA calculator: how much is tax-free?
Enter your basic salary, HRA and rent. See the tax-free part, a month and a year, under the rules for FY 2026-27.
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Make your HRA claim hold up
Our tax experts check your rent agreement, receipts and landlord details, so your claim stands if the tax department asks.
Questions people often ask
I pay rent to my parents. Can I still claim HRA?
Yes, if they own the house and show the rent as their income. We'll help you set up the agreement and receipts.
My employer didn't count my HRA. Is it too late?
No. If you choose the old regime in your return, you can claim it there. Salaried people need to file by the due date to choose the old regime.
How the HRA exemption works
Your tax-free HRA is the lowest of these three amounts, worked out for the months you paid rent.
- The HRA you received from your employer.
- Rent paid minus 10% of salary. "Salary" here is basic, plus DA if it counts for retirement benefits, plus any commission paid as a fixed share of turnover.
- 50% of salary in a metro, 40% elsewhere.
Metro cities for HRA
| City | FY 2025-26 | FY 2026-27 |
|---|---|---|
| Mumbai, Delhi, Kolkata, Chennai | 50% | 50% |
| Bengaluru, Hyderabad, Pune, Ahmedabad | 40% | 50% |
| Everywhere else | 40% | 40% |
HRA exemption is available only under the old regime. Your employer will usually ask for rent receipts, and for your landlord's PAN if your total rent for the year is over ₹1 lakh.
Last reviewed 8 October 2026. The rules in this calculator come from these official sources.
- Income-tax Rules, 2026 (Notification 22/2026) Central Board of Direct Taxes
- Tax rules for salaried individuals Income Tax Department
Common questions
How is HRA exemption calculated?
It's the lowest of three amounts: the HRA you received, the rent you paid minus 10% of your salary, and 50% of that salary in a metro city or 40% elsewhere. Salary here means basic pay, DA if it counts for retirement benefits, and any commission paid as a fixed share of turnover. The rest of your HRA is taxable.
Which cities count as metros for HRA?
From FY 2026-27: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. For FY 2025-26 it's only Mumbai, Delhi, Kolkata and Chennai. Gurugram, Noida, Navi Mumbai and Thane are not metros for HRA.
Can I claim HRA under the new tax regime?
No. Under the new regime, all of your HRA is taxable. HRA exemption is only available if you choose the old regime.
Can I claim HRA if I pay rent to my parents?
Yes, if your parent owns the house, you actually pay the rent, and they show it as income in their own return. Keep a rent agreement and bank records of the payments. Rent paid to a spouse is usually not accepted.
When do I need my landlord's PAN?
When the total rent you pay in the year is more than ₹1 lakh. Give your landlord's PAN with your claim, and your employer will ask for it before allowing the exemption.
What if I don't get HRA but pay rent?
Under the old regime, you may be able to claim a separate rent deduction instead, of up to ₹5,000 a month. It's commonly called the 80GG deduction, and it has its own conditions. An expert can check if you qualify.
I forgot to give rent receipts to my employer. Can I still claim HRA?
Yes. You can claim it in your income tax return if you choose the old regime there. Salaried people without business income must file that return by the due date (31 July for most) to choose the old regime. Keep your receipts and agreement in case the tax department asks.
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