# HRA Exemption Calculator FY 2026-27: How Much Is Tax-Free > HRA exemption calculator for FY 2026-27: tax-free HRA under 10(13A) is the lowest of HRA received, rent minus 10% of basic, and 50% or 40% of basic. Source: https://trykosh.com/tools/hra-exemption-calculator Free tool - Income tax # HRA exemption calculator Work out how much of your house rent allowance is tax-free, which of the three limits applies to you, and how much stays taxable. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax-free HRA this year INR 1,56,000 INR 13,000 a month - taxable HRA INR 84,000 Rent above INR 1 lakh a year: give your employer your landlord's PAN. Exempt **INR 1,56,000**Taxable **INR 84,000** 1\. HRA actually received INR 2,40,000 2\. Rent paid − 10% of basic INR 1,56,000 3\. 40% of basic (other cities) INR 2,40,000 Exemption = the lowest of the three INR 1,56,000 HRA exemption is only available in the old regime. The new regime taxes all of it. ## Upload your statement and Kosh does this for you. Upload a bank statement or salary slip and Kosh works out your tax under both regimes from your real numbers, finds the deductions you're missing and reminds you before every deadline. [Start free](/signup?via=tool-hra-exemption-calculator) ## How the HRA exemption calculator works If you are salaried, get HRA as part of your pay and live in a rented home, part of that HRA can be exempt from tax in the old regime. The exempt amount is the lowest of three figures, each worked out for the period you actually paid rent. The first is the HRA you received. The second is the rent you paid minus 10% of your basic salary plus dearness allowance. The third is 50% of basic plus DA if you live in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad, or 40% anywhere else. The last four joined the list from FY 2026-27 under the Income-tax Rules, 2026; Gurugram, Noida and other cities still use 40%. Whatever is left after the exemption is added to your taxable salary. The calculator shows all three limits so you can see which one is holding you back: often it's the rent-minus-10% limb, which means paying more rent raises your exemption, or the 40% limb, which is fixed by your basic. HRA exempt = min(HRA received, rent − 10% x basic, 50% or 40% x basic) Basic basic salary plus dearness allowance, for the months you paid rent ## Worked example: Sneha, INR 32,000 rent in Mumbai Sneha's basic is INR 70,000 a month and her HRA is INR 35,000. She pays INR 32,000 rent in Mumbai. Over the year: HRA received is INR 4.2 lakh, rent minus 10% of basic is INR 3 lakh, and 50% of basic is INR 4.2 lakh. The lowest is INR 3 lakh, so that much is tax-free and INR 1.2 lakh of her HRA is taxable. Tax-free HRA this year INR 3,00,000 INR 25,000 a month - taxable HRA INR 1,20,000 Rent above INR 1 lakh a year: give your employer your landlord's PAN. Exempt **INR 3,00,000**Taxable **INR 1,20,000** 1\. HRA actually received INR 4,20,000 2\. Rent paid − 10% of basic INR 3,00,000 3\. 50% of basic (one of the eight 50% cities) INR 4,20,000 Exemption = the lowest of the three INR 3,00,000 HRA exemption is only available in the old regime. The new regime taxes all of it. [Load this example into the calculator ->](?basic=70000&hra=35000&rent=32000&metro=1#calculator) ## Good to know - HRA exemption exists only in the old regime. In the new regime all HRA is taxable. - If your annual rent is over INR 1 lakh, your employer will ask for your landlord's PAN. - You can pay rent to your parents if they own the home and declare the rent as their income. You can't claim HRA for rent paid to your spouse. - No HRA in your salary? Self-employed people and those without HRA can claim up to INR 60,000 a year for rent under section 80GG, in the old regime. - Rent above INR 50,000 a month means you must deduct 2% TDS from the rent once a year. ## Frequently asked questions Which cities count as metro for HRA? From FY 2026-27, eight cities get the 50% limit: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. The Income-tax Rules, 2026 added the last four. Every other city, including Gurugram, Noida and Jaipur, uses the 40% limit. Can I claim HRA without rent receipts? Employers generally need rent receipts if your rent is over INR 3,000 a month, and the landlord's PAN if annual rent tops INR 1 lakh. When filing, keep receipts, a rent agreement and bank transfer records in case the department asks. Can I claim HRA if I live with my parents? Yes, if you genuinely pay them rent, they own the house, and they show the rent as income in their own returns. Pay by bank transfer and keep a rent agreement. Can I claim HRA and a home loan together? Yes, if you live in a rented home and the house you own is in another city, let out, or under construction. If you own a home in the same city and rent another, keep a clear reason such as distance to work. What if I only rented for part of the year? The exemption is worked out only for the months you paid rent. Set the months in the calculator; HRA for the other months is fully taxable. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.