HRA exemption calculator FY 2025-26, AY 2026-27
The exemption under section 10(13A) is the least of three limbs. Enter annual figures. Nothing you type leaves your browser.
Your figures
Enter annual amounts, for 01/04/2025 to 31/03/2026. One period is enough if your salary, rent and city stayed the same all year. Add a period for each change, for example a move from Mumbai to Pune in October.
Which cities get the 50% cap
Rent paid without HRA, section 80GG
If you pay rent but your salary has no HRA component at all, or you are self employed, section 80GG gives a deduction instead. It is the least of Rs 5,000 per month, 25% of adjusted total income, and rent paid over 10% of adjusted total income.
Your figures
How HRA exemption actually works
The three limbs
Section 10(13A) read with rule 2A exempts the least of these three amounts:
- The HRA you actually received
- The rent you actually paid, minus 10% of salary
- 50% of salary if you live in a metro city, 40% anywhere else
Salary here has a specific meaning
It is basic salary, plus dearness allowance only to the extent it forms part of retirement benefits, plus commission at a fixed percentage of turnover. That last item comes from the Supreme Court decision in Gestetner Duplicators. It is not your gross salary, and it is not basic alone. Most calculators use basic alone and overstate the exemption as a result.
It is computed period by period
Rule 2A applies to the period during which the accommodation was occupied. If your salary, your rent or your city changed during the year, each stretch is a separate calculation and the results are added together. Collapsing the year into a single calculation gives a different, wrong number.
Which cities get 50%
This changed between the two years people are filing right now, so check which year you are dealing with.
| City | FY 2025-26 | FY 2026-27 |
|---|---|---|
| Delhi, Mumbai, Kolkata, Chennai | 50% | 50% |
| Bengaluru, Hyderabad, Pune, Ahmedabad | 40% | 50% |
| Every other city and town | 40% | 40% |
The wider eight city list comes from the Income-tax Rules 2026, notified with effect from 01/04/2026. If you are filing for FY 2025-26 you are still on the four city list, so Bengaluru, Hyderabad, Pune and Ahmedabad are capped at 40%.
Satellite towns do not inherit the cap of the metro next door. Gurugram, Noida, Faridabad and Ghaziabad are not Delhi. Navi Mumbai and Thane are not Mumbai. All of them are capped at 40%.
Old regime only
Under the new regime in section 115BAC the HRA exemption is simply not available, and neither is section 80GG. The whole allowance is taxable. Since the new regime is the default, anyone who wants this exemption has to opt into the old regime and then be better off overall, which is a separate calculation against the slab rates.
Paperwork
- Landlord PAN must be given to your employer once annual rent crosses Rs 1,00,000. Without it the employer will not allow the exemption in Form 16.
- Rent receipts are generally not insisted on where HRA does not exceed Rs 3,000 per month, but keep them anyway.
- From FY 2026-27, the relationship between landlord and tenant has to be disclosed when claiming HRA.
Common questions
Is Bengaluru a metro city for HRA in FY 2025-26?
No. For FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% cap. Bengaluru is capped at 40%. Bengaluru, Hyderabad, Pune and Ahmedabad move to 50% only from FY 2026-27, under the Income-tax Rules 2026 notified with effect from 01/04/2026.
Can I claim HRA exemption under the new tax regime?
No. Under section 115BAC the HRA exemption is not available and the whole allowance is taxable. Section 80GG is barred as well. The exemption is available only under the old regime.
What counts as salary for the HRA calculation?
Basic salary, plus dearness allowance only to the extent it forms part of retirement benefits, plus commission at a fixed percentage of turnover. It is not gross salary and it is not basic alone.
Do I need my landlord's PAN?
Yes, once annual rent exceeds Rs 1,00,000 the landlord PAN must be reported to the employer. Without it the employer will not allow the exemption in Form 16.
Is Gurugram or Noida treated as Delhi for HRA?
No. The statutory list names Delhi only. Gurugram, Noida, Faridabad and Ghaziabad are non-metro and capped at 40%, as are Navi Mumbai and Thane.
Can I claim HRA if I pay rent to my parents?
Yes, provided the arrangement is genuine. The rent must actually be paid, ideally by bank transfer rather than cash, and your parents must declare it as house property income in their own return. You cannot claim it if you own the property yourself, wholly or jointly. Keep a rent agreement and receipts, because this is a claim assessing officers look at closely. Rent paid to a spouse is not accepted.
What documents do I need to claim HRA?
Rent receipts, and a rent agreement where you have one. Your landlord's PAN is required once annual rent exceeds Rs 1,00,000. Rent receipts are generally not insisted upon where HRA does not exceed Rs 3,000 per month. From FY 2026-27 you must also disclose your relationship with the landlord.
What if I changed city or job during the year?
Rule 2A applies to each period of occupation separately. Each stretch is computed on its own salary, rent and city, and the results are added. Computing once for the whole year gives the wrong answer. Use the add period button on the calculator.