How to use the HRA Exemption Calculator
- 1 Enter your yearly basic salary plus DA.
- 2 Enter the HRA you receive in the year.
- 3 Enter the rent you pay in the year.
- 4 Choose your city and read the exempt and taxable HRA.
Worked example
Basic plus DA of ₹6 lakh, HRA of ₹2.4 lakh and rent of ₹3 lakh in Bengaluru. The three limits are: HRA received ₹2,40,000; rent minus 10% of salary ₹2,40,000; and 50% of salary ₹3,00,000. The lowest is ₹2,40,000, so all the HRA is exempt and none of it is taxed.
Features
Three-limit rule
Shows all three amounts and picks the lowest as the exemption.
Eight metro cities
Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad use 50% from 2026-27.
Monthly figure
See the exempt amount a month for payroll declarations.
When to use it
Tax declarations
Declare rent to your employer correctly at the start of the year.
Choosing a regime
Use the exemption in the income tax calculator to compare regimes.
Rent negotiations
See how a higher rent changes your exemption.
Moving cities
Compare the exemption after a move to Pune or Bengaluru.
Frequently asked questions
How is HRA exemption calculated?
The exemption is the lowest of: the HRA you actually receive, rent paid minus 10% of basic salary plus DA, and 50% of basic plus DA in a metro city or 40% elsewhere.
Which cities get 50%?
From 1 April 2026, Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Earlier only the first four were metros for HRA.
Is HRA exempt in the new regime?
No. HRA exemption is available only in the old regime. In the new regime all HRA is taxable.
Do I need my landlord's PAN?
If your rent is more than ₹1 lakh a year, you must give your employer the landlord's PAN. The new rules also ask for details of how you are related to the landlord, if at all.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent and your parents show it as income. Keep a rent agreement and bank transfer records.
What if I do not get HRA?
Self-employed people and employees without HRA may claim a limited deduction for rent under the old regime, subject to conditions.
What counts as salary here?
Basic pay plus dearness allowance if it forms part of retirement benefits, plus commission based on a fixed percentage of turnover.
What proof do I need?
Rent receipts or a rent agreement, and bank transfer records. Your employer may ask for them before allowing the exemption in payroll.
Can I claim HRA and a home loan together?
Yes, if you live in a rented home and the house you own is in another city, or is not yet ready, or is rented out. Keep records of both.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated