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New 8-city rule

HRA calculator for Chennai

Chennai stays at 50%, as it was under the old rules. High basic pay with modest rent usually means the rent limit is the one that bites.

Financial year

Use DA only if it counts for retirement benefits. Leave out other allowances.

Your HRA

Tax-free HRA for FY 2026-27

₹1,92,000.00

Taxable HRA: ₹96,000.00

  1. HRA you actually received₹2,88,000.00
  2. Rent paid minus 10% of basic + DA₹1,92,000.00lowest = exempt
  3. 50% of basic + DA₹3,60,000.00

₹1,92,000.00 of your ₹2,88,000.00 HRA is tax-free over 12 months. It is the lowest of the three limits, here your rent minus 10% of basic + DA. The other ₹96,000.00 is added to your taxable salary.

  • Only under the old tax regime. The new regime (the default) has no HRA exemption.
  • Your rent is above ₹1 lakh a year: your employer will ask for the landlord's PAN.
  • The rent must actually be paid. Keep UPI or bank records along with the receipts.
  • Claim it by giving your employer Form 124 (old Form 12BB) with your rent receipts. Exempt under Schedule III (Sl. 11) of the Income-tax Act, 2025 and Rule 279.
  • From FY 2026-27 you also declare your relationship to the landlord.
Make rent receipts →

Not tax advice. General guidance based on the Income-tax Act, 2025 and Income-tax Rules, 2026 as reported; confirm with your employer or a CA.

How HRA exemption is calculated

The tax-free part of your house rent allowance is the lowest of three amounts: the HRA you actually received, the rent you paid minus 10% of your basic pay plus DA, and 50% of basic plus DA in a listed city (40% elsewhere). Whatever is left of your HRA is taxed as salary.

Which cities get 50%?

Up to FY 2025-26: Delhi, Mumbai, Kolkata and Chennai. From FY 2026-27 the Income-tax Rules, 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad. City pages: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.

Who can claim it?

Only salaried people who choose the old tax regime and actually pay rent for a home they live in. Up to FY 2025-26 the provision is section 10(13A) of the Income-tax Act, 1961 with Rule 2A, and you declare rent to your employer in Form 12BB. From FY 2026-27 it is Schedule III (Sl. 11) of the Income-tax Act, 2025 with Rule 279 of the Income-tax Rules, 2026, and the declaration is Form 124.

Is my data stored?

No. The maths runs in your browser and nothing you type is sent to our server.