Created for Startups in India
Learn @ Academy
AY 2026-27 · Old regime · CA-verified

HRA Exemption Calculator

Find your tax-free House Rent Allowance in seconds. We run the least-of-three rule for you and show exactly which cap is limiting your exemption.

✓ 100% free✓ No sign-up✓ Updated for AY 2026-27✓ CA-verified math

Enter your monthly figures — the result updates instantly.

Metro = Delhi, Mumbai, Kolkata, Chennai only. Bengaluru, Hyderabad, Pune and all other cities count as non-metro (40%).

Exempt HRA ₹1,92,000 per year · ₹16,000/month
Taxable HRA₹48,000 / yr

Least of these three (per month)

Actual HRA received₹20,000
Rent paid − 10% of salary₹21,000
40% of salary (Basic + DA)₹16,000

Lowest figure wins → 40% of salary

HRA exemption applies only under the old tax regime and needs rent proof (plus the landlord’s PAN if annual rent exceeds ₹1 lakh). General information, not tax advice — confirm with a qualified CA.

How it’s calculated

The least-of-three rule

Your exempt HRA is the smallest of these three figures. The calculator above works it out for you — here’s what it’s comparing.

1

Actual HRA received

The House Rent Allowance component your employer actually pays you.

2

Rent − 10% of salary

Annual rent you pay, minus 10% of your salary (Basic + DA).

3

50% or 40% of salary

50% of salary if you live in a metro, otherwise 40%.

“Salary” here means Basic + Dearness Allowance (and commission, if it’s a fixed % of turnover). HRA is available only under the old tax regime — the new regime drops it.

The metro catch

Only four cities count as “metro”

This single setting changes your third cap from 40% to 50% of salary — and it trips up a lot of people.

Metro — 50%
  • Delhi
  • Mumbai
  • Kolkata
  • Chennai
Non-metro — 40%
  • Bengaluru
  • Hyderabad
  • Pune, Ahmedabad & every other city
  • All towns and rural areas

Yes — despite their size, Bengaluru and Hyderabad are non-metro for HRA. Pick “No — non-metro” in the calculator unless you rent in one of the four cities above.

Before you claim

What you’ll need — and what’s allowed

Rent receipts & landlord PAN

Keep rent receipts for the year. If your annual rent crosses ₹1 lakh, your landlord’s PAN is mandatory.

Old regime only

HRA exemption exists only under the old regime. If the new regime saves you more overall, the exemption is moot.

Rent to parents is allowed

You can pay rent to a parent who owns the home — they must report it as income, and you need a genuine arrangement and proof.

HRA + home loan together

You can claim HRA and a home-loan deduction at the same time — e.g. you rent where you work and own a house elsewhere.

FAQ

HRA calculator — questions

How is HRA exemption calculated?
It is the least of three amounts: the actual HRA you receive, your annual rent minus 10% of salary (Basic + DA), and 50% of salary if you live in a metro (40% if not). The smallest of the three is your exempt HRA; the rest is taxable.
Is HRA exemption available in the new tax regime?
No. HRA exemption is available only under the old tax regime. The new regime removes it (along with 80C and 80D) in exchange for lower slab rates — so compare both before deciding.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are metros, where the cap is 50% of salary. Every other city — including Bengaluru, Hyderabad and Pune — is non-metro at 40%.
Can I claim HRA without rent receipts?
You need rent proof to claim HRA. Keep rent receipts for the year, and if your annual rent exceeds ₹1 lakh, your landlord’s PAN is mandatory. No genuine rent paid means no HRA exemption.
Can I claim HRA if I pay rent to my parents?
Yes, if the arrangement is genuine. Your parents must own the home and declare the rent as their income, and you should keep receipts and pay through a traceable mode.
Can I claim HRA and a home loan at the same time?
Yes. If you rent a home where you work and own a house elsewhere (or it’s let out), you can claim HRA on the rent and the home-loan deductions on the owned property together.
What does ‘salary’ mean in the HRA formula?
Salary for HRA means Basic pay plus Dearness Allowance, and commission where it is a fixed percentage of turnover. Other allowances are not included.
File with a CA, not a portal

Claim your HRA correctly — and everything else

A CA checks which regime wins, claims your HRA with 80C, 80D and the rest, and files cleanly. Transparent pricing, real Chartered Accountants, 7-day turnaround.

Talk to a CA on WhatsApp