HRA Exemption Calculator
Work out how much house rent allowance is exempt from tax: the least of actual HRA, 50% of salary in the four metros or 40% elsewhere, and rent paid minus 10% of salary. Old regime only.
Free · No sign-up · Nothing leaves your browser · Figures reviewed 22 September 2026
Your details
Salary for HRA means basic + DA (where it counts for retirement benefits) + commission on turnover. Not gross.
Mumbai, Kolkata, Delhi and Chennai only. Bengaluru, Hyderabad, Pune, Gurugram and Noida are not metros for HRA.
Optional — shows what the exemption is worth in rupees.
HRA exempt from tax
₹2,40,000
₹20,000 a month.
- Exempt · 80%
- Taxable HRA · 20%
The least of three
- Actual HRA received
- ₹3,00,000
- 40% of salaryNon-metro rate
- ₹2,40,000
- Rent paid minus 10% of salary
- ₹3,00,000
- Exempt
- ₹2,40,000
- Taxable HRA
- ₹60,000
The 40% of salary limit is binding. More rent will not raise the exemption.
Monthly
- HRA received
- ₹25,000
- Exempt
- ₹20,000
- Added to taxable salary
- ₹5,000
HRA is an old-regime exemption only. Under the default new regime it is fully taxable, whatever your rent.
Metros are exactly four for HRA: Mumbai, Kolkata, Delhi and Chennai. Bengaluru, Hyderabad, Pune, Gurugram, Noida and Ahmedabad are 40% cities — a frequent and expensive mistake.
"Salary" here means basic + DA (where DA counts for retirement benefits) + commission on turnover. It excludes other allowances and perquisites.
Your landlord's PAN is required where annual rent exceeds ₹1,00,000.
The least-of-three test is applied month by month, not once for the year, whenever salary, HRA, rent or city changes mid-year.
This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.
House rent allowance is exempt under section 10(13A) up to the lowest of three figures. Which of the three binds tells you what to do about it — if your actual HRA is the limit you need a restructure, if rent minus 10% is the limit a higher rent would help, and if the 40% or 50% cap is the limit nothing will.
One detail costs people real money: for HRA, metros are exactly four — Mumbai, Kolkata, Delhi and Chennai. Bengaluru, Hyderabad, Pune, Gurugram, Noida and Ahmedabad are 40% cities.
The three limits
Actual HRA received. 50% of salary if the accommodation is in Mumbai, Kolkata, Delhi or Chennai, otherwise 40%. Rent paid minus 10% of salary.
The exemption is the smallest of the three. Because the third limb subtracts 10% of salary, someone paying rent below a tenth of their salary gets no exemption at all however large their HRA is.
The four metros, and the cities people assume are metros
The statutory wording names Mumbai, Calcutta, Delhi and Madras. That list has not been extended. Bengaluru, Hyderabad, Pune, Gurugram, Noida and Ahmedabad are all 40% cities for HRA, whatever their cost of living.
This matters most for employees of IT-services companies, where the bulk of the workforce sits in 40% cities and applying the 50% rate produces an over-claim that surfaces at assessment.
The paperwork
Your landlord's PAN is required where annual rent exceeds ₹1,00,000. Without it the employer cannot allow the exemption in TDS.
The least-of-three test is applied month by month rather than once for the year. If your salary, HRA, rent or city changes mid-year, each period is computed separately and the results added.
Rent paid to a parent is allowed if the arrangement is genuine — actual payment, a genuine landlord who declares the rent as income, and ideally an agreement. Rent paid to a spouse is generally not.
Frequently asked questions
- How is HRA exemption calculated?
- It is the least of three: actual HRA received; 50% of salary in Mumbai, Kolkata, Delhi or Chennai, 40% elsewhere; and rent paid minus 10% of salary. Salary here means basic + DA + commission on turnover.
- Is Bangalore a metro for HRA?
- No. For HRA the metros are exactly four — Mumbai, Kolkata, Delhi and Chennai. Bengaluru, Hyderabad, Pune, Gurugram, Noida and Ahmedabad all use the 40% rate.
- Can I claim HRA in the new tax regime?
- No. HRA exemption exists only in the old regime. Under the new default regime the whole allowance is taxable regardless of rent paid.
- Do I need my landlord's PAN to claim HRA?
- Yes, where annual rent exceeds ₹1,00,000. Without it your employer cannot allow the exemption when computing TDS.
- Can I claim HRA if I pay rent to my parents?
- Yes, where the arrangement is genuine — rent actually paid, a parent who genuinely owns the property and declares the rent as income in their own return. Rent paid to a spouse is generally not accepted.
About this tool
Built by the ViniOffice team. Figures and rules last reviewed 22 September 2026 against the statutory reference this team maintains. Indian statutory rates are date-effective and change by notification — confirm against the current one before running payroll or filing. This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.
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