HRA Exemption Calculator
Exempt house rent allowance under Indian tax rules.
As of FY 2026-27Inputs
This calculator applies to India — the rules behind it are Indian tax/regulatory rules, not just the currency, so it isn't shown in other currencies.
This calculator is for general information only and isn't financial advice. Rates, tax rules, and your actual eligibility depend on your specific situation — check with your bank or a qualified advisor before acting on it.
Formula
Exempt HRA = min(HRA received, Rent − 10% of basic, 50%/40% of basic)
Under Indian income tax rules, HRA exemption is the least of three amounts: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic for metro cities or 40% for non-metro cities. The remainder of HRA is taxable.
Worked example
With ₹50,000 basic, ₹25,000 HRA, and ₹20,000 rent in a metro, the three limits are ₹25,000 (actual HRA), ₹15,000 (rent minus ₹5,000), and ₹25,000 (50% of basic). The exempt amount is ₹15,000 — the lowest — leaving ₹10,000 of HRA taxable each month.
Where this can give the wrong answer
- If you don't pay rent (living in own house), HRA exemption is typically zero — the calculator still runs but exempt amount will be ₹0.
- Old-regime HRA exemption requires rent receipts and landlord PAN for rent above ₹1 lakh/year — documentation rules aren't enforced here.
- Basic salary should exclude HRA, conveyance, and other allowances — using gross instead of basic overstates the city-limit component.
FAQ
- Delhi, Mumbai, Kolkata, and Chennai are treated as metros (50% of basic). All other cities use the 40% limit. Some employers apply different classifications — confirm with your payroll team.