How is Rent-Free Accommodation (RFA) taxed in India?

RFA is taxed as a perquisite under salaries. For owned properties in FY 2026-27, it is valued at 5%, 7.5%, or 10% of salary depending on the city population. For leased properties, it is valued at rent paid or 10% of salary, whichever is lower.

What is the new RFA valuation rate for FY 2026-27?

Starting FY 2024-25 onwards, RFA rates for private employees were reduced to 10% (from 15%) for cities with population > 40L, 7.5% (from 10%) for 15L-40L, and 5% (from 7.5%) for other cities.

Rent-Free Accommodation (RFA) Perquisite CalculatorFY 2026-27

Calculate the taxable value of rent-free or concessional accommodation provided by employer for both private and government employees. Budget 2026 ready.

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Quick Summary: Rent-Free Accommodation (RFA) Perquisite Calculator

Rent-Free Accommodation (RFA) is a non-monetary benefit provided by an employer. For private sector employees in FY 2026-27, the taxable perquisite value is based on the city's population: 10% of salary for cities >40L population, 7.5% for 15L-40L, and 5% for others. If the house is leased by the employer, the value is the actual rent paid or 10% of salary, whichever is lower.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.