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HRA Exemption Calculator

Updated July 2026 HRA exemption is the least of three amounts, and the third depends on your city. This is the part almost every calculator online currently gets wrong: from 1 April 2026 the Income-tax Rules 2026 extend the 50%-of-basic limit to eight cities, adding Bengaluru, Pune, Hyderabad and Ahmedabad to Delhi, Mumbai, Kolkata and Chennai. For FY 2025-26 — the year most people are filing right now — only the four metros qualify. Pick your Tax Year and the city list changes with it.
⚠ Verify before filing. Results are estimates based on the law as applied at the date shown above. Tax rules change — always confirm the current rate or provision at the official source (CBIC or Income Tax Department) before raising an invoice or filing a return. Last reviewed: August 2026.
HRA Calculator

Frequently Asked Questions

Which cities get the 50% HRA exemption?

For FY 2025-26 (AY 2026-27): Delhi, Mumbai, Kolkata and Chennai only. From 1 April 2026 (Tax Year 2026-27) the Income-tax Rules 2026 add Bengaluru, Pune, Hyderabad and Ahmedabad, making eight.

Did Bengaluru really move from 40% to 50%?

Yes, but only from 1 April 2026. If you are filing for FY 2025-26 your Bengaluru HRA is still capped at 40% of basic. Using the new 8-city list for last year's return would overstate your exemption.

How is HRA exemption calculated?

It is the least of: actual HRA received; rent paid minus 10% of basic salary; and 50% of basic (8 notified cities) or 40% (everywhere else).

Can I claim HRA under the new tax regime?

No. HRA exemption is available under the old regime only.

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