House Rent Allowance (HRA) Exemption

Find how much of your HRA is tax-exempt under Section 10(13A), and how much is taxable. From FY 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad also qualify for the 50% limb. Enter monthly figures.

Financial year

Basic salary (per month)

DA forming part (per month, optional)

HRA received (per month)

Rent paid (per month)

Which city do you rent in?

Annual HRA exemption ₹0

1. Actual HRA received₹0

2. Rent paid − 10% of salary₹0

3. 50% of salary₹0

Exempt (least of the three)₹0

Taxable HRA₹0

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How HRA exemption works. The exempt amount is the least of: (1) actual HRA received; (2) rent paid minus 10% of salary; and (3) 50% of salary if you live in a specified city, or 40% otherwise. Which cities get 50%: for FY 2025-26 (AY 2026-27), only Delhi, Mumbai, Kolkata and Chennai. From FY 2026-27 (Tax Year 2026-27), Rule 279 of the Income-tax Rules, 2026 adds Bengaluru, Hyderabad, Pune and Ahmedabad, making eight 50% cities; the change applies to salary earned on or after 1 April 2026 and does not apply to your FY 2025-26 return. "Salary" here means basic pay plus dearness allowance that forms part of retirement benefits. HRA exemption is available only under the old tax regime (Section 10(13A) of the 1961 Act, carried into Schedule II of the Income-tax Act, 2025). From 1 April 2026 the employer declaration is Form 124 (formerly 12BB), which asks for your relationship with the landlord; landlord PAN is needed where annual rent exceeds ₹1 lakh. This is a guide, not tax advice — confirm with a professional before filing.

Old regime or new?

HRA exemption only helps if you file under the old regime. Compare both with our income tax calculator, read new vs old tax regime in 2026, or let our Saket team handle your filing — see ITR advisory.

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