HRA Calculator

Estimate the monthly house rent allowance exemption and the part that stays taxable.

Enter the values and press Calculate.

Your result will show here.

About this calculator

House rent allowance is exempt only up to the lowest of three amounts: the HRA you received, the rent you paid minus 10% of salary, and a city percentage of salary. In Delhi, Mumbai, Kolkata, and Chennai that city percentage is 50%. Elsewhere it is 40%.

Salary for this test is basic pay plus dearness allowance where the DA forms part of retirement benefits. If your DA does not, leave that box at zero so you do not inflate the exemption.

If the rent is less than 10% of salary, the rent test is zero and the exemption is zero. Paying a token rent does not unlock the whole HRA.

This exemption is an old-regime computation. Someone using only the default new regime should not subtract this figure from taxable salary. The income-tax calculator on this site does not apply HRA inside its new-regime column.

HRA exemption

Exemption is the lowest of:
1. HRA received
2. Rent paid minus 10% of salary
3. 50% of salary in Delhi, Mumbai, Kolkata, or Chennai, otherwise 40%

Salary here means basic pay plus DA that forms part of retirement benefits.
Taxable HRA = HRA received − exemption.
If rent is not above 10% of salary, the exemption from rent is zero.

Example: metro rent

Basic ₹50,000, no DA, HRA received ₹20,000, rent paid ₹18,000, metro ticked.

Monthly exemption is ₹13,000.00. Monthly taxable HRA is ₹7,000.00.

The three candidates are HRA received (₹20,000), rent minus 10% of basic (₹13,000), and 50% of basic (₹25,000). The lowest is ₹13,000, so that is the exemption.

Basic ₹50,000, HRA ₹20,000, rent ₹18,000, metro

Lowest of the three tests.

₹13,000.00

How to use

Enter monthly basic pay.
Enter DA only if it counts for retirement benefits. Otherwise leave it at zero.
Enter the HRA your employer pays and the rent you pay.
Tick the metro box only for Delhi, Mumbai, Kolkata, or Chennai.
Press Calculate. Multiply is already done for a 12-month year if every month matches.

Important notes

You need to have paid the rent. The exemption is not available on HRA alone.
Keep receipts. If yearly rent is above ₹1,00,000, the landlord’s PAN is required in the usual compliance practice.
Other cities use 40%, even large ones that are not in the four-metro list used for this rule.
The new tax regime does not allow this exemption. It belongs to the old-regime computation.

FAQ

Which cities count as metro?

For this HRA rule the metro rate is for Delhi, Mumbai, Kolkata, and Chennai. Other cities use 40%.

Do I include DA?

Include it only when it forms part of salary for retirement benefits. Otherwise the salary base is basic pay.

What if I pay no rent?

The exemption needs rent actually paid. HRA received without rent is taxable.

Does the new tax regime allow this?

No. HRA exemption is not available under the default new regime. This page only works out the old-regime style figure.

Disclaimer

Results are estimates for general information. Verify important decisions with an appropriate professional or official source. Keep rent receipts and confirm whether you are using the regime that allows this exemption.

Last updated 5 October 2026.