Fill in the details and click Calculate to see your results.
This calculator is independent and unofficial — not affiliated with, endorsed by, or a
representative of the Government of India or any government department. Figures are
estimates for informational purposes; verify official figures before making decisions.
📘 About the HRA Exemption (Tax) Calculator
House Rent Allowance itself (30% of basic in X cities, 20% in Y, 10% in Z) is part of your salary. For income tax, part of it is exempt only if you choose the OLD tax regime and actually pay rent.
The exempt amount is the least of three: the HRA received; rent paid minus 10% of basic + DA; and 50% of basic + DA in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (40% elsewhere). The four new cities were added by the Income-tax Rules 2026 — they are exactly the 7th CPC X-class cities.
The calculator uses the tax year as a government employee is paid: salaries for March 2026 to February 2027, with the annual increment in January or July and DA for each part of the year. Use the result in the old vs new regime comparison.
🧮 Formula
The app uses basic pay for the '10%' step and basic plus DA for the city limit.
✏️ Worked examples
Level 7, X city, rent ₹20,000
You get| Tax-free HRA (old regime) | ₹1,53,765 a year |
| Taxable HRA | ₹10,995 |
| HRA received in FY 2026-27 | ₹1,64,760 (30% of basic) |
| Rent needed for full exemption | ₹20,916 a month |
| Under the new regime | All HRA is taxable — HRA exemption is allowed only in the old regime |
₹1,53,765 a year.
Basic ₹6 lakh a year, DA 60%, rent ₹15,000 a month, metro city
You get| HRA received | ₹180,000.00 |
| Rent paid less 10% of basic | ₹120,000.00 |
| 50% of basic + DA (metro) | ₹480,000.00 |
| HRA exemption | ₹120,000.00 |
| Taxable HRA | ₹60,000.00 |
The exempt HRA is the smallest of the three figures. The rest of the HRA is taxable.
🧭 How to use this calculator
What you enter
- Pay Level
- Current Stage
- Increment Month
- City Class (X = 8 big cities: 50% exemption)
- HRA % of Basic (30 / 20 / 10) (%)
- DA % on March–June Salaries (%)
- DA % on July–October Salaries (%)
- DA % on November–February Salaries (%)
- Monthly Rent Paid (₹)
What you get
- Tax-free HRA (old regime)
- Taxable HRA
- HRA received in FY 2026-27
- Rent needed for full exemption
- Under the new regime
- Note
❓ Frequently asked questions
Can I claim HRA exemption in the new tax regime?
No. HRA exemption is available only in the old regime. In the new regime all HRA is taxable.
Which cities get the 50% HRA exemption from 2026-27?
Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad (Income-tax Rules 2026). All other places get 40%.
Do I need the landlord's PAN?
Yes, if the rent is more than ₹1 lakh a year. Keep rent receipts and the rent agreement too.
Can I claim HRA if I live in government accommodation?
No. Employees in government accommodation do not get HRA, so there is nothing to exempt.
