HRA Exemption Calculator

The exempt part of HRA is the least of three figures: the HRA you received, rent paid less 10% of salary, and 50% of salary in a metro or 40% elsewhere. Enter monthly figures for a period in which rent and salary were steady, and the calculator shows all three limbs, which one binds, and what the exemption is worth under the old regime.

Last reviewed 1 October 2026

Tax year 2026-27 · Schedule III (Table: Sl. No. 11) of the Income-tax Act, 2025 read with rule 279 of the Income-tax Rules, 2026 (formerly section 10(13A) and Rule 2A) · old regime only

Monthly figures

Basic salary a month

₹

Basic pay only; other allowances are not "salary" for this rule

Dearness allowance a month

₹

Only DA that counts for retirement benefits; zero for most private-sector employees

HRA received a month

₹

As shown on your salary slip

Rent paid a month

₹

What you actually pay, and can evidence

City of the rented house From 1 April 2026 rule 279 adds Bengaluru, Hyderabad, Pune and Ahmedabad to the 50% list; Gurugram and Noida, outside Delhi, stay at 40%

Months this applied The period the rent and salary above were steady; run separate periods if either changed

Your marginal rate, old regime Only to show what the exemption is worth; cess is added

HRA exemption formula

The exempt HRA is the least of three figures, worked for the same period. Salary here means basic pay plus dearness allowance that counts for retirement benefits. The example is the calculator’s own starting figures: basic ₹50,000, HRA ₹20,000 and rent ₹22,000 a month, in a 40% city.

(a) HRA received₹20,000

The HRA on your salary slip.

(b) Rent paid less 10% of salary₹17,000

₹22,000 rent less ₹5,000, which is 10% of ₹50,000.

50% in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad; 40% anywhere else. Here 40% of ₹50,000.

Exempt HRA₹17,000 a month

The least of the three. The other ₹3,000 of HRA is taxed with your salary. In the new regime none of it is exempt.

What this calculator does and does not do

The rule. The exempt HRA is the least of (a) the HRA received, (b) rent paid less 10% of salary, and (c) 50% of salary in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad, 40% anywhere else. "Salary" here is basic pay plus dearness allowance that counts for retirement benefits — nothing else. Commission is not part of it under rule 279, and since 1 October 2026 this calculator no longer asks for it. The test runs for the period the rented house is occupied, so if rent or salary changed during the year, work each period separately and add them.

Conditions. You must actually pay rent for a house you live in and do not own. Rent paid to a parent or spouse counts only if it is genuinely paid and they show it as income. An employee who receives no HRA cannot use this rule; section 80GG is the route there. Under the new regime the exemption is not available and the whole HRA is taxed.

Paperwork. Rent above ₹1,00,000 a year means the landlord's PAN on Form 12BB to your employer. Rent above ₹50,000 a month means you, the tenant, deduct TDS at 2% and deposit it — the TDS calculator covers that.

This is a calculator, not advice. For anything that affects your actual position, take advice — hello@caakhilesh.in.

See also the income tax calculator, where HRA sits inside the old-regime comparison, the CTC breakup calculator, or all calculators. HRA counts only under the old regime: old regime or new, and how to decide.

Quoting this calculator?

You are welcome to use these figures in an article, a forum answer or a client note. A link back is all I ask — here it is, ready to paste.

For a web page

As plain text