HRA exemption calculator — section 11 and Schedule III, tax year 2026–27
Enter basic, DA, HRA received and rent paid to get the exempt HRA — the least of the three Schedule III, Sl. 11 conditions, with the tax year 2026–27 metro city list.
| Breakdown | Value |
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Estimate. The method and sources are on this page — check them against your own case before you act.
How it is calculated
HRA exemption is not the whole HRA. Schedule III, Sl. 11 caps it at the lowest of three tests, so a high rent does not always mean a high exemption.
Exempt HRA = least of (actual HRA received, rent − 10% of salary, 50% or 40% of salary)
Build the salary base
Salary here means basic pay plus DA (and any commission as a percentage of turnover). Add basic and DA, then take 10% of it for the rent test and 50%/40% for the city test.
Run the three conditions
Condition 1 is the annual HRA actually received. Condition 2 is annual rent minus 10% of salary, floored at zero. Condition 3 is 50% of salary in the eight metro cities and 40% elsewhere.
Take the lowest
The smallest of the three is exempt. The rest of the HRA is added to taxable salary and taxed at your slab. This exemption belongs to the old regime only.
HRA exemption rules for tax year 2026–27
| Condition | Rule | Annual amount |
|---|---|---|
| Actual HRA received | Condition 1 | HRA in your salary structure |
| Rent minus 10% of salary | Condition 2 | Rent − 10% × (basic + DA) |
| Metro limit | Condition 3 — 50% of salary | Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad |
| Non-metro limit | Condition 3 — 40% of salary | All other cities |
| Salary base | Basic + DA + turnover commission | Gross salary is not used |
| Exemption | Lowest of conditions 1–3 | Cannot exceed HRA received |
| New tax regime | No HRA exemption | Schedule III, Sl. 11 is not available |
| Landlord PAN | Required if annual rent exceeds Rs 1,00,000 | Unless the landlord is a non-resident or government notified |
What most pages get wrong
The lowest condition decides your exemption
Even a large rent bill can leave you with little exemption if your basic salary is low, because the 50%/40% limit then becomes the binding condition.
The 50% list is no longer just four cities
From tax year 2026–27, Bengaluru, Hyderabad, Pune and Ahmedabad join Delhi, Mumbai, Kolkata and Chennai for the 50% HRA exemption limit.
No HRA exemption in the new regime
The new regime is the default and does not allow Schedule III, Sl. 11. Compare the regime tax before assuming HRA will reduce your tax.
Rent receipts are not optional
Employers ask for receipts and, when annual rent exceeds Rs 1,00,000, the landlord's PAN. Claims without evidence are reversed in assessment.
Frequently asked questions
How is HRA exemption calculated?+
Which cities get the 50% HRA limit in tax year 2026–27?+
Can I claim HRA exemption in the new tax regime?+
Do I need to show rent receipts to my employer?+
Is HRA exemption available if I own the house?+
Does DA count in the HRA salary base?+
What if my rent is less than 10% of salary?+
Sources, dates and a changelog.
Every number this calculator uses is either an input you control or a value from the sources below. The formula is compiled and tested at build time, so the page cannot ship with a broken calculation.
Sources
- Income Tax Department — Income-tax Act, 2025, section 11 (incomes not included in total income)
- Income Tax Department — Income-tax Act, 2025, Schedule III (Table Sl. No. 11, HRA)
- Income Tax Department — Income-tax Rules, 2026, Rule 279 (HRA limits; G.S.R. 198(E), 20 March 2026)
- Checked by hand, not scraped
This page
- Last verified: 30 October 2026
- Next review: 30 April 2027
- Vertical: Salary & Tax
- Build tests: 4 passed
- Changelog: 2 entries
How we handle errors
- Spotted a mistake? Report it — we correct and log it.
- Corrections appear in the changelog below.
- Read the methodology and the disclaimer.