HRA Exemption Calculator
Work out how much of your house rent allowance is tax-free using the lowest-of-three rule, and what is left to tax. Runs in your browser; nothing is uploaded.
A worked example
Say your basic pay is Rs 60,000 a month, your employer pays Rs 30,000 a month as HRA, you pay Rs 28,000 a month in rent, and you live in Delhi, a metro city, for all 12 months. The three amounts to compare are the actual HRA of Rs 3,60,000 for the year, the year's rent of Rs 3,36,000 minus 10% of the year's salary of Rs 72,000, which comes to Rs 2,64,000, and 50% of salary, Rs 3,60,000. The lowest of the three, Rs 2,64,000, is your exemption, leaving Rs 96,000 of the HRA taxable. At a 30% slab that exemption alone is worth about Rs 82,368 in tax saved, before cess.
Understanding the calculation
- The three limits
- Your exemption is the smallest of them: the actual HRA, the rent above 10% of salary, and 50% or 40% of salary. Each is added up for the months you paid rent.
- Old regime only
- The exemption reduces your taxable salary in the old tax regime. Under the new regime you get none, so enter the result into the Old vs New Regime calculator to see whether the old regime still wins.
Common questions
How is the HRA exemption calculated?
It is the lowest of three amounts: the HRA your employer actually pays, the rent you pay minus 10% of your salary, and 50% of salary if you live in a metro or 40% if you do not. Here salary means basic pay plus dearness allowance that counts for retirement benefits, plus commission on a fixed percentage of turnover.
Which cities count as metros?
Until FY 2025-26 the four metros were Delhi, Mumbai, Kolkata and Chennai. From FY 2026-27, Rule 279 of the Income-tax Rules, 2026 adds Bengaluru, Hyderabad, Pune and Ahmedabad, so those cities also get the 50% limit. This calculator lets you pick the year so you can see both.
Can I claim HRA under the new tax regime?
No. The HRA exemption is available only under the old tax regime. If you chose the new regime, HRA is fully taxable.
What if I pay rent to my parents?
You can claim it if you actually pay the rent, they own the house, and they declare the rent as income in their return. Keep proper rent receipts and a rent agreement.
When do I need my landlord's PAN?
If the rent you pay in a year is more than Rs 1 lakh, you need to give your landlord's PAN to your employer to claim HRA.
What if I did not get HRA from my employer?
Then you cannot use this exemption. If you pay rent and get no HRA, Section 80GG may let you claim a deduction, which works differently and is not covered here.