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.

Tax year 2026-27 · section 11 read with Schedule II of the Income-tax Act, 2025 (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

Commission a month

₹

Only commission fixed as a percentage of turnover

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 Gurgaon, Noida, Bengaluru, Hyderabad and Pune are 40% cities under the rule

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

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 Delhi, Mumbai, Kolkata or Chennai, 40% anywhere else. "Salary" here is basic pay plus dearness allowance that counts for retirement benefits plus commission fixed as a percentage of turnover — nothing else. 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.

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.

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