HRA Exemption Calculator (India)
Find out how much of your House Rent Allowance is tax-free. Enter your basic salary, HRA, rent and city, and the calculator applies the three-limit rule, shows which limit binds, and estimates your tax saving under the old regime.
Exemption working
How to use this HRA calculator
- Enter your basic salary plus dearness allowance per month. Special allowance and other components do not count.
- Enter the HRA your employer pays and the rent you actually pay every month.
- Set the number of months you paid rent this year if you moved or started renting mid-year.
- Choose your city type and your tax slab. The calculator shows the exempt HRA, the taxable HRA and an estimate of the tax you save.
How HRA exemption is calculated
The exempt amount is the lowest of these three numbers:
- the actual HRA your employer pays you;
- the rent you pay minus 10% of your basic salary plus DA;
- 50% of basic plus DA if you live in a metro city, or 40% in any other city.
From 1 April 2026, the 50% category covers eight cities under the Income-tax Rules, 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Everywhere else, the limit is 40%. Whatever is not exempt is added to your taxable salary.
Worked examples
| Case | HRA received | Rent − 10% of basic | 50% or 40% of basic | Exempt per month |
|---|---|---|---|---|
| Metro, basic ₹50,000, rent ₹18,000 | ₹20,000 | ₹13,000 | ₹25,000 | ₹13,000 |
| Other city, basic ₹30,000, rent ₹10,000 | ₹12,000 | ₹7,000 | ₹12,000 | ₹7,000 |
In the first case the exemption is ₹1,56,000 for the year. At the 30% slab, that saves about ₹48,672 in tax including cess. In the second case the exemption is ₹84,000 for the year.
Rules and documents you need
- Old regime only. HRA exemption is not available under the new tax regime. If you choose the new regime, the full HRA is taxable.
- You must pay rent. No rent, no exemption. Keep rent receipts and a rent agreement.
- Landlord’s PAN is required when yearly rent is above ₹1 lakh. The 2026 rules also ask you to disclose your relationship with the landlord, so keep those details ready.
- Rent to family. Paying rent to a parent can be allowed if it is genuine, paid through the bank and declared as income by the parent.
- No HRA from the employer? You may be able to claim a rent deduction under a different section (Section 80GG in the older numbering), subject to its conditions.
Tips to claim HRA correctly
- Declare rent to your employer at the start of the year so TDS is lower during the year.
- If you missed it, you can still claim the exemption while filing your return, as long as you have the proof.
- Restructuring your salary so that HRA is higher may raise your exemption, but only up to the lowest of the three limits.
- Compare regimes before deciding. Use the CTC to in-hand salary calculator to see whether the old or new regime leaves more money with you.
Limitations
The calculator uses the monthly figures you enter and multiplies them by the months of rent. It does not handle changes in salary or rent during the year, rent paid for a different city than where you work, or partial-month rent. Your employer’s payroll and the Income Tax Department rules are the final authority.
Frequently asked questions
Is HRA exemption available in the new tax regime?
No. HRA exemption is allowed only in the old regime. Under the new regime, HRA is fully taxable.
Which cities get the 50% HRA limit?
Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad from 1 April 2026. All other cities use 40%.
What salary is used to calculate HRA?
Basic salary plus dearness allowance (if it forms part of retirement benefits) and commission that is a fixed percentage of turnover. Special allowances are not included.
Can I claim HRA if I live with my parents?
Yes, if you actually pay rent to them, there is a genuine arrangement, and they report the rent as income. Keep bank transfer proof.
Do I need rent receipts?
Employers usually ask for rent receipts and landlord PAN for yearly rent above ₹1 lakh. Keep documents in case the tax department asks for proof.
Last updated: 13 November 2026. This calculator is for education and estimation only and is not tax, legal or financial advice. Rules and interest rates change; verify the current position with the official source or a qualified professional before making decisions.