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HRA calculator – exemption for metro and non-metro

Enter basic salary, HRA received and rent paid to see your HRA exemption, the taxable HRA, and which of the three rules limits you.

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HRA calculator

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The salary figure your HRA rule uses.

HRA received
20,000
Rent minus 10% of basic
15,000
50% of basic
25,000
Exemption (lowest of the three)
15,000
HRA that stays taxable
5,000

The exemption shown is the lowest of HRA received, rent paid minus 10% of basic, and 50% of basic in those four cities or 40% elsewhere. Figures are for one month. Tax rules change, and salary for this test can include dearness allowance when it counts for retirement benefits. This is guidance, not a tax filing.

How to use the hra calculator

  1. Enter your monthly basic salary (plus DA if it counts for retirement benefits).

  2. Enter the HRA you receive and the rent you pay each month.

  3. Tick the box if you live in a 50% city.

  4. Read the three limits, the exemption (the lowest one) and the taxable HRA.

  • No uploadYour files are processed on your device and never sent anywhere.
  • FastNo upload or download wait – results appear in seconds.
  • Free, no signupNo account, no watermark and no daily limit.

HRA exemption calculator: how much of your rent allowance is tax-free

Enter your monthly basic salary, the HRA in your salary slip and the rent you pay. The HRA calculator shows the three limits the rule compares and picks the lowest one. That is your exempt HRA, and the rest of your HRA is taxable. HRA exemption applies only under the old tax regime. Your numbers stay in this tab.

HRA calculation formula

Exempt HRA = the lowest of:

  1. HRA actually received
  2. Rent paid − 10% of salary
  3. 50% of salary if you live in a listed metro city, otherwise 40% of salary

“Salary” means basic pay plus dearness allowance where DA counts for retirement benefits. It excludes other allowances.

Example (monthly): basic ₹50,000, HRA ₹20,000, rent ₹20,000, living in Pune.

  • HRA received = ₹20,000
  • Rent − 10% of basic = ₹20,000 − ₹5,000 = ₹15,000
  • 50% of basic = ₹25,000

Exempt HRA = ₹15,000 a month. Taxable HRA = ₹5,000 a month.

Which cities count as metro for HRA (50%)?

Tax year 50% of salary 40% of salary
2026-27 onward (Income-tax Rules 2026, Rule 279) Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru Any other place
FY 2025-26 and earlier Delhi, Mumbai, Kolkata, Chennai Any other place

Tick the 50% box if your city is in the list for the year you are checking.

Tips

  • Use monthly figures throughout, or yearly figures throughout. Do not mix them.
  • If your rent or salary changed during the year, run each period separately and add the results.
  • Keep rent receipts and the landlord’s PAN if the annual rent crosses the limit your employer asks for.

This is guidance for understanding the rule, not a tax filing or advice.

Plan savings with the SIP calculator or the FD, RD and PPF calculator. Check a home loan with the EMI calculator.

Frequently asked questions

How is HRA exemption calculated?

It is the lowest of three amounts: the HRA you actually receive; rent paid minus 10% of salary; and 50% of salary in the listed metro cities or 40% elsewhere. Salary here means basic plus DA that counts for retirement benefits.

Which cities get 50% for HRA?

From tax year 2026-27, the Income-tax Rules, 2026 (Rule 279) list Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru at 50%. Every other place is 40%. Up to FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai were at 50%.

Can I claim HRA in the new tax regime?

No. HRA exemption is available only if you choose the old tax regime. Under the default new regime the full HRA is taxable.

What if my rent is less than 10% of basic?

Then rent minus 10% of salary is zero or negative, so the exemption is zero and all HRA is taxable.

Can I claim HRA if I pay rent to my parents?

Many salaried people do, with a genuine rent agreement and payments, and the parent declares the rent as income. The 2026 rules also ask you to disclose your relationship with the landlord. Check with your employer or a tax adviser.

Is this my final tax figure?

No. It estimates one part of salary income. Your employer’s payroll and your return decide the final figure. This is guidance, not tax advice.

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