HRA Exemption Calculator
Short answer
Last checked · 1 key figure from the fact register
Key facts
| Fact | Value | Source | Date checked |
|---|---|---|---|
| HRA exemption (Rule 279) | Least of HRA received, rent minus 10% of salary, and 50% (eight metros) or 40% of salary; old regime only Official source | Rule 279, Income-tax Rules, 2026 (opens in a new tab) |
HRA (House Rent Allowance) is the part of your salary meant to cover rent. If you pay rent, a portion can be tax-free under the old tax regime. This calculator applies the standard three-way test and shows how much stays taxable.
Tax-free HRA per year
₹2,40,000
- Actual HRA (monthly)
- ₹20,000
- Rent − 10% of basic (monthly)
- ₹20,000
- City limit (monthly)
- ₹25,000
- Taxable HRA per year
- ₹0
How it is calculated
- HRA exemption is the LEAST of three amounts:
- 1. Actual HRA received
- 2. Rent paid minus 10% of salary (basic + DA)
- 3. 50% of salary in the eight metro cities above, or 40% elsewhere (Rule 279)
- Available under the old tax regime only.
Estimates for information only; not financial, tax or legal advice.
Worked example
Example (the default inputs): Basic + DA ₹50,000 a month, HRA received ₹20,000, rent paid ₹25,000, metro city. The three amounts are ₹20,000 (HRA received), ₹20,000 (rent − 10% of ₹50,000) and ₹25,000 (50% of salary). The least is ₹20,000, so ₹2,40,000 a year is tax-free and none of the HRA is taxable.
Frequently asked questions
Which cities count as metros for HRA?
Under Rule 279 of the Income-tax Rules, 2026, the 50% limit applies in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Every other city uses 40%.
What counts as salary for HRA?
Basic pay plus DA, if the terms of employment say so. No other allowances are included.
Can I claim HRA under the new tax regime?
No. HRA exemption is available only under the old tax regime.
Do I need the landlord's PAN?
Yes, if the rent you pay is more than ₹1 lakh in a year.
Related perks
- HRA (House Rent Allowance) Tax Exemption
- Employer NPS Contribution Tax Benefit (Section 124, formerly 80CCD(2))
Sources and status
Each figure on this page comes from the fact register. What the badges mean.
- Official sourcechecked 2026-10-16
HRA exemption is the least of (a) HRA received, (b) rent minus 10% of salary, (c) 50% of salary in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru, or 40% elsewhere. Salary is basic plus DA (if the terms say so), no other allowances. Old regime only (Schedule III, Sl. 11)
Government employee? Find your salary by pay level and see 8th Pay Commission scenarios.
Estimates for information only; not financial, tax or legal advice. Disclaimer.