HRA Calculator

What Is the HRA Exemption?

House Rent Allowance (HRA) is the part of your salary meant for rent. If you live in a rented home, part or all of it can be exempt from income tax under the old regime. The exempt amount is the lowest of three figures, and this calculator works out all three for you.

How to Use It

1. Enter your yearly basic pay plus dearness allowance.
2. Enter the HRA you receive in the year and the rent you pay.
3. Choose whether you rent in a metro city and which financial year you are calculating.

Example

With a basic pay of ₹7,20,000, HRA of ₹2,88,000 and rent of ₹3,00,000 in a metro city, the three figures are: actual HRA ₹2,88,000; rent minus 10% of basic ₹2,28,000; and 50% of basic ₹3,60,000. The lowest is ₹2,28,000, so that much HRA is tax-free and ₹60,000 is taxable.

New Metro Cities From FY 2026-27

For more than twenty years, only Delhi, Mumbai, Kolkata and Chennai counted as metros for the 50% limit. From 1 April 2026 (FY 2026-27), the Income-tax Rules 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad. If you rent in one of these four cities, your limit rises from 40% to 50% of basic pay - choose "FY 2025-26 or earlier" when you check older years.

Tips

• Keep rent receipts or a rent agreement; your employer may ask for them.
• If your rent is more than ₹1 lakh a year, you need your landlord's PAN.
• Paying rent to a parent is allowed if they really own the home and declare the rent as income.

Limitations

The HRA exemption is not available under the new tax regime. The calculator works on yearly totals; if your salary or rent changed during the year, work out each period separately. To see whether the old regime is worth it with your HRA, use the Income Tax Calculator.