Rent-free accommodation calculator
Enter your salary and details of the house. See its taxable value, which is added to your salary.
- 2023 valuation rules
- Owned or leased
- Free, no sign-up
Check your Form 12BA
Employer housing appears as a perquisite in Form 12BA and Form 16. Our experts check it's valued correctly.
Questions people often ask
Is this taxable in the new regime?
Yes. Perquisites like housing are taxable in both regimes.
Can I claim HRA as well?
No. HRA is for rent you pay; with employer housing, you don't get HRA for the same home.
Valuing employer housing
Percentage of salary, or the rent.
- Owned: 10%, 7.5% or 5% of salary by city size.
- Leased: lower of the rent and 10% of salary.
- Add furniture, less any rent you pay.
Last reviewed 9 October 2026. The rules in this calculator come from these official sources.
- Tax rules for salaried individuals, AY 2026-27 Income Tax Department
Common questions
How is rent-free accommodation taxed?
Its value is added to your salary as a perquisite and taxed at your slab rate.
What is the value of an employer-owned house?
10% of salary in cities with over 40 lakh people (2011 census), 7.5% in cities of 15 to 40 lakh, and 5% elsewhere.
And if the employer rents it?
The lower of the rent the employer pays and 10% of your salary.
What counts as salary here?
Basic, DA if it counts for retirement benefits, bonus, commission and taxable allowances, for the time you live there.
Does furniture add to it?
Yes: 10% a year of the furniture's cost, or the actual hire charges.
