HRA Exemption Calculator (India)
Work out how much of your House Rent Allowance is tax-exempt under section 10(13A), using the three-way least-of rule.
HRA exemption is available only under the old tax regime and only if you actually pay rent. This is an estimate, not tax advice. See our Disclaimer.
Last reviewed: — HRA rules and metro lists confirmed for FY 2025-26 and FY 2026-27.
The formula
Exempt HRA is the least of three amounts: (1) the HRA you actually receive; (2) the rent you pay minus 10% of your salary; and (3) 50% of salary if you live in a metro city, or 40% if you do not. "Salary" here means basic pay plus dearness allowance that counts for retirement benefits. Whatever HRA exceeds this amount is taxed as part of your salary.
Worked example
Basic salary ₹6,00,000 a year, HRA received ₹2,40,000, rent paid ₹2,64,000, living in a metro. (1) Actual HRA = ₹2,40,000. (2) Rent minus 10% of salary = ₹2,64,000 − ₹60,000 = ₹2,04,000. (3) 50% of salary = ₹3,00,000. The least is ₹2,04,000, so that is exempt and the remaining ₹36,000 of HRA is taxable.
Which regime allows it?
HRA exemption applies only under the old tax regime. Under the new regime it is not available. Enter the exempt amount from this calculator into the HRA field of the income tax calculator to compare regimes.
Limitations
This uses annual figures and a single city. If your salary, HRA or rent changed during the year, or you lived in different cities, calculate each period separately. Paying rent to a landlord whose rent exceeds ₹1,00,000 a year generally needs the landlord's PAN; check the current rule. The metro list used is Delhi, Mumbai, Kolkata, Chennai for FY 2025-26, and Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad for FY 2026-27.
More worked examples
Basic ₹4,80,000, HRA ₹1,20,000, rent ₹3,00,000, non-metro: the three amounts are ₹1,20,000, ₹2,52,000 and ₹1,92,000. The least is the HRA you receive, so all of it is exempt and taxable HRA is ₹0.
Basic ₹5,00,000, HRA ₹3,00,000, rent ₹3,60,000, metro: the amounts are ₹3,00,000, ₹3,10,000 and ₹2,50,000. The 50% cap is the least, so ₹2,50,000 is exempt and ₹50,000 is taxable.
When the exemption is zero
If your annual rent is no more than 10% of your salary, the second amount is ₹0, so nothing is exempt. With basic ₹5,00,000, HRA ₹2,00,000 and rent ₹40,000, the whole ₹2,00,000 is taxable. Entering rent of 0 also gives an exempt amount of ₹0. The calculator does not warn you that no rent means no claim.
Choosing the financial year and city
The year only changes what "Metro" means. Take basic ₹5,00,000, HRA ₹2,50,000 and rent ₹3,00,000 in a city that moved onto the list for FY 2026-27. Treated as non-metro for FY 2025-26, the 40% cap gives ₹2,00,000 exempt and ₹50,000 taxable. Treated as metro for FY 2026-27, the 50% cap is ₹2,50,000, so all of the HRA is exempt.
Input rules
- All three amounts are for the whole year. Multiply monthly figures by 12.
- Basic salary must be above zero. HRA and rent can be zero but not negative.
- A blank basic, HRA or rent field shows "Please enter basic salary, HRA received and rent paid."
Frequently asked questions
Can I claim HRA if I live with my parents?
Yes, if you genuinely pay rent to them and they report it as income. Keep rent receipts and proof of payment.
Can I claim HRA and home loan interest together?
In some situations yes, for example when the house you own is in another city. Rules are specific, so confirm your case with a tax professional.
Is HRA available in the new tax regime?
No. HRA exemption under section 10(13A) is available only under the old regime.
Which of the three amounts usually decides the exemption?
It depends on rent. Low rent makes the rent-minus-10% amount the smallest. High rent makes the 50% or 40% salary cap the smallest. A small HRA from your employer makes the HRA itself the limit.
Do I enter monthly or yearly amounts?
Yearly. The labels say ₹/year. For ₹20,000 a month of rent, enter ₹2,40,000.
Does the result change between FY 2025-26 and FY 2026-27?
Only through the metro list. The 10% deduction and the 50% and 40% caps are the same in both years.