# HRA exemption calculator India FY 2026-27 | Peoplo.ai

URL: https://peoplo.ai/in/en/tools/hra-calculator/

> Free HRA calculator: see how much house rent allowance is tax-free under the old regime, at 50% of salary in 8 metro cities and 40% everywhere else.

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# HRA exemption calculator

Find how much of your house rent allowance is tax-free under the old tax regime.

Tax-free HRA for the year

₹0

Taxable HRA:

The lowest of these three is exempt

HRA received

50% of salary

Rent minus 10% of salary

Only under the old regime. HRA is fully taxable under the new regime.

Estimates for general information, using rules checked 22 October 2026. Not tax or legal advice. Nothing you enter leaves your browser.

## How it is worked out

Under the old regime, the tax-free part of HRA is the **lowest of three amounts** : the HRA you actually received; 50% of salary if you live in one of the eight cities, or 40% elsewhere; and rent paid minus 10% of salary.

Salary means basic pay plus dearness allowance (and commission fixed as a share of turnover). The eight cities at 50% are Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad, Ahmedabad, under the Income-tax Rules 2026.

If you pay more than ₹1 lakh in rent a year, your employer will ask for your landlord's PAN. HRA is not exempt under the new regime, which is the default.

Sources · checked 22 October 2026

- [ClearTax: HRA exemption and the eight cities](https://cleartax.in/s/hra-house-rent-allowance)

[Read the India payroll compliance guide](https://peoplo.ai/in/en/compliance/)

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