Updated October 2026HRA 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: 12 October 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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