HRA exemption calculator

The exempt part of house rent allowance is the least of three amounts: the HRA actually received; the rent paid minus 10 percent of salary; and 50 percent of salary for the listed metro cities or 40 percent elsewhere. Salary here means basic pay plus dearness allowance that forms part of retirement benefits, plus commission fixed as a percentage of turnover. The balance of the HRA is taxable as salary.

The metro list changed. Until FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai carried the 50 percent limit. The Income-tax Rules, 2026 add Bengaluru, Hyderabad, Pune and Ahmedabad from FY 2026-27, which raises the ceiling for a large number of salaried tenants. The calculator applies the right limit for the year you choose.

Only in the old regime. HRA exemption is not available under the new tax regime. Whether giving it up is worthwhile depends on the rest of your deductions; compare both in our regime calculator and read the slab guide.

• You must actually pay rent for accommodation you occupy, and not own that accommodation. Rent paid to a parent is allowed if it is genuinely paid, by bank transfer, under a rent agreement, and the parent reports it as income. Rent paid to a spouse is not accepted.
• Rent receipts or a rent agreement, given to the employer with Form 12BB. For rent above ₹1 lakh a year, the landlord’s PAN.
• For rent above ₹50,000 a month, you must deduct 2 percent tax at source once a year and file Form 141 (formerly 26QC); see our TDS on rent guide.
• You can claim both HRA and home loan interest where you rent in one place and own a house elsewhere, or where the owned house is let out or not yet ready.
• If the employer did not allow the exemption because proofs were late, claim it in the return and keep the documents.

No HRA in your salary? Self-employed people and employees without HRA use section 80GG instead, limited to ₹60,000 a year, also only in the old regime.