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Income Tax

HRA Calculator

Calculate HRA exemption and taxable HRA using salary, rent, the rented home's city, and the applicable tax year.

Private
Instant
Estimate
HRA exemption (old regime)₹2,40,000

Inputs

Amounts Are
₹6,00,000
in rupees

Yearly amount (monthly payslip figure × 12)

₹0
in rupees

Yearly amount (monthly payslip figure × 12). Only the DA counted for retirement benefits.

More salary details
₹0
in rupees

Only commission fixed as a percentage of the sales you make. Leave it at ₹0 if you get none.

12 months
in months

Months of the tax year you lived in the rented home. The rules use that share of your salary and HRA.

₹2,40,000
in rupees

Yearly amount (monthly payslip figure × 12)

₹3,00,000
in rupees

Yearly amount (monthly payslip figure × 12)

50% city limit

Delhi gets the 50% HRA salary limit in both available tax years.

Tax Year
Tax Year 2026-27
Tax Regime
Old regime

Results

HRA exemption (old regime)
₹2,40,000
Taxable HRA
₹0
Salary for HRA
₹6,00,000
Limit that applies
Actual HRA received

Applies only if you file under the old regime. The new regime, which is the default, allows no HRA exemption.

All ₹2,40,000 of HRA received is exempt. It is not more than both rent minus 10% of salary (₹2,40,000) and the 50% city limit (₹3,00,000).

Three-rule test

Delhi · 50% limit

Three-rule test
RuleValue
Actual HRA received · lowest, applied₹2,40,000
Rent paid minus 10% of salary₹2,40,000
50% of salary (metro city)₹3,00,000
Exempt HRA₹2,40,000
Taxable HRA₹0

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Assumptions and methodology

Transparent calculation notes for HRA Calculator.

Methodology notes

Formula used

Lowest of three HRA rules
Exemption = min(actual HRA, rent - 10% salary, 50% or 40% salary)

Salary for HRA is basic salary plus dearness allowance, plus commission paid as a fixed % of turnover. The selected city and tax year determine whether the 50% or 40% limit applies.

Methodology

  • Calculate salary for HRA from basic salary, dearness allowance and commission paid as a fixed % of turnover.
  • For part of a year in the rented home, use that share of salary and HRA against the rent paid in those months.
  • Compute the three statutory comparison values.
  • Use the lowest value as exempt HRA and treat the balance as taxable HRA.

Core assumptions

  • Amounts are yearly unless you choose monthly; a monthly figure is the payslip amount and counts × 12.
  • Tax Year 2026-27 gives the 50% limit to eight named cities; FY 2025-26 gives it to four. Every other city uses 40%.
  • The exemption applies only in the old tax regime; in the new regime all HRA received is taxable.

Not included

  • Rent proof validation and employer payroll treatment are excluded.
  • If rent, salary or city changes during the year, work out each period separately and add them.
  • Final eligibility depends on documents and filing treatment.

About HRA Calculator

Guide

1What is HRA Exemption?

House Rent Allowance (HRA) is a salary component that may be partly or fully exempt from tax when you receive HRA from your employer and pay rent for accommodation.

The exemption depends on salary, HRA received, rent paid, the rented home's city and the applicable tax year.

2HRA Exemption Formula

HRA exemption is the lowest of these three values:

  • Actual HRA received
  • Rent paid minus 10% of salary
  • 50% of salary in the eight eligible cities for Tax Year 2026-27, or 40% elsewhere

Salary for HRA is basic salary, plus the dearness allowance that counts for retirement benefits, plus any commission paid as a fixed percentage of turnover. If you lived in the rented home for only part of the year, the rules use that share of salary and HRA against the rent paid in those months.

3How to Use This Calculator

  • Step 1: Choose whether you enter the amounts per year or per month (your payslip figures)
  • Step 2: Enter basic salary, dearness allowance, HRA received and rent paid; under More salary details, add commission paid as a fixed % of turnover and the months you lived in the rented home
  • Step 3: Choose the city where you rent and the tax year
  • Step 4: Review exempt HRA, taxable HRA, and the three-rule breakdown

If rent, salary or city changes during the year, work out each period separately and add them.

4Documents and Practical Checks

  • Keep rent receipts and the rental agreement.
  • Give your landlord's PAN if rent is more than ₹1,00,000 a year.
  • From Tax Year 2026-27, declare HRA to your employer in Form 124 (it replaces Form 12BB) and state whether the landlord is related to you.
  • HRA exemption is generally not available under the new tax regime
  • Employer payroll treatment and final ITR claim should be reconciled carefully

Frequently Asked Questions

FAQ
Can I claim HRA without paying rent?
No. HRA exemption requires actual rent payment and supporting records.
Which cities get the 50% HRA limit?
From Tax Year 2026-27 (1 April 2026), eight cities get the 50% limit under the Income-tax Rules, 2026: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Every other place uses 40%. For FY 2025-26 returns, only Delhi, Mumbai, Kolkata and Chennai get 50%.
Can I claim HRA under the new tax regime?
HRA exemption is generally not available under the new tax regime. It is mainly relevant when using the old tax regime.
Why is taxable HRA not zero?
Taxable HRA appears when actual HRA received is higher than the permitted exemption under the lowest-of-three rule.