Rent − 10% salary ₹234,000 · 50% salary ₹330,000 · Exempt HRA ₹234,000 · Taxable HRA ₹6,000
Finance
HRA Calculator for Tax Year 2026-27
Estimate HRA exemption and taxable HRA across one or more salary, rent or city periods.
Free to use No account required Browser calculation
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Input
ReadyEnter your values
Enter the values for this calculator. We’ll show the answer, the method and the formula together.
Calculation method
Formula & methodology
The result above is backed by the calculator-specific formulas and assumptions shown here.
Normal-regime HRA exemption
Least of: Actual HRA; Rent paid − 10% of HRA salary; 40%/50% of HRA salaryThe comparison is performed separately for each entered period, then the exempt amounts are added.
Taxable HRA
Actual HRA received − Exempt HRAMethod & assumptions
For each period, HRA salary is basic salary plus only the DA amount that qualifies for HRA salary treatment under the applicable employment terms.
The rent-based amount is max(0, rent paid − 10% of HRA salary), so rent at or below 10% of salary produces no exemption through that limb.
The city percentage is 50% for Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru, and 40% for other cities in the Tax Year 2026-27 rule set used by this calculator.
Under the normal regime, exempt HRA is the least of actual HRA, rent minus 10% of salary and the applicable 40%/50% salary amount for each period.
When the new regime is selected, this calculator sets HRA exemption to zero and treats the entered HRA received as taxable HRA.
Periods must stay inside 1 April 2026 to 31 March 2027 and cannot overlap.
Important assumption
This is an educational tax estimate for Tax Year 2026-27, not tax or legal advice. Eligibility, supporting documents, employment terms and fact-specific treatment can affect the amount claimable on an actual return.
Examples
Worked examples
Examples use this calculator’s own inputs and outputs, not generic page filler.
Exempt HRA ₹120,000
Rent − 10% salary ₹90,000 · 40% salary ₹120,000 · Exempt HRA ₹90,000
HRA exemption ₹0 · HRA received remains taxable in this calculator
Help & assumptions
Frequently asked questions
Important assumptions and practical details for this calculator.
How does this HRA calculator determine the exempt amount?+
For each normal-regime period it takes the least of actual HRA received, rent paid minus 10% of HRA salary, and 40% or 50% of HRA salary depending on the selected residential city group.
Why can I add multiple HRA periods?+
Salary, rent and city can change during the tax year. The calculator therefore applies the HRA comparison separately to each non-overlapping period and then totals the results.
Which cities use the 50% salary limit in this Tax Year 2026-27 calculator?+
Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru are treated as specified 50% cities in the rule set used here. Other cities use 40%.
What should I enter as qualifying DA?+
Enter only the dearness allowance amount that qualifies as salary for HRA purposes under the applicable employment terms. If your DA does not qualify, enter 0.
What happens if rent is not more than 10% of HRA salary?+
The rent-minus-10% limb becomes zero, which makes the estimated HRA exemption zero for that period under the normal-regime least-of-three calculation.
Does the new regime allow HRA exemption in this calculator?+
No. When the new regime is selected, the calculator sets HRA exemption to zero and shows the entered HRA received as taxable HRA.
Does this calculator prove that I am legally eligible to claim HRA exemption?+
No. It estimates the arithmetic from the information entered. Documentary requirements, employment terms and fact-specific eligibility must be checked separately.
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