ToolkitBeeHow to use
- Enter your yearly basic salary plus dearness allowance (DA).
- Enter the HRA you received and the rent you paid in the year.
- Choose your city.
- See the tax-free and taxable HRA, and which limit applied.
Formula
Tax-free HRA is the lowest of: (1) the HRA you received, (2) rent paid minus 10% of basic + DA, and (3) 50% of basic + DA in the 8 listed cities, or 40% elsewhere. The rest of your HRA is taxable.
Frequently asked questions
Can I claim HRA in the new tax regime?
No. HRA exemption is available only in the old regime. Use our Income Tax Calculator to check which regime is better for you.
Which cities get 50%?
From FY 2026-27, under the Income-tax Rules 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All other cities get 40%.
Do I need my landlord's PAN?
If the rent you pay is more than ₹1 lakh in a year, you must give your employer your landlord's PAN. Keep rent receipts as proof.