How to use the HRA Calculator
- Enter your monthly basic salary plus dearness allowance from your payslip.
- Enter your monthly HRA and the rent you actually pay.
- Choose your city type and the number of months you paid rent in the year.
Formula
HRA exemption = least of (Actual HRA, Rent − 10% × Basic+DA, 50% or 40% × Basic+DA)
Taxable HRA = HRA received − HRA exemption
The three limits
The exempt part of HRA is the lowest of these, all worked out for the same period:
- The HRA you actually received.
- Rent paid minus 10% of basic salary + DA.
- 50% of basic + DA if you live in Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad; 40% elsewhere.
Note
Worked example
| Limit | Annual amount |
|---|---|
| Actual HRA received | ₹2,40,000 |
| Rent − 10% of basic + DA (₹2,16,000 − ₹60,000) | ₹1,56,000 ← lowest |
| 50% of basic + DA | ₹3,00,000 |
₹1,56,000 is exempt and ₹84,000 of HRA is taxable. Here the rent limit decides the answer, so living in a 50% city doesn't change it; paying more rent would.
Only under the old regime
HRA exemption is available only if you choose the old tax regime. Under the new regime, your entire HRA is taxable. Use the Income Tax Calculator to see whether your HRA and other deductions make the old regime worth it.
Proof your employer will ask for
- Rent receipts or a rent agreement.
- The landlord's PAN if the rent is more than ₹1 lakh a year.
- Rent paid to parents can qualify if you genuinely pay it and they own the house — they must show it as income. Rent paid to a spouse is generally not accepted.
Worked example
Same salary, but rent ₹30,000 a month in Pune
- Rent − 10% = ₹3,60,000 − ₹60,000 = ₹3,00,000
- 50% of basic + DA = ₹3,00,000
- Actual HRA = ₹2,40,000 ← lowest
The full ₹2,40,000 of HRA is exempt
Important notes
- Salary for HRA means basic + dearness allowance (where it forms part of retirement benefits). Allowances such as special allowance aren't included.
Frequently asked questions
Can I claim HRA if I live in my own house?
No. HRA exemption is for rent you actually pay for the place you live in.
Which cities get the 50% limit?
From FY 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Everywhere else the limit is 40%.
Can I claim HRA and home-loan interest together?
Yes, in some cases — for example, if you own a house in another city but rent where you work. Both are old-regime benefits and need supporting documents.
What if I don't receive HRA from my employer?
This calculator applies to HRA received as part of salary. Self-employed people and employees without HRA may be able to claim a separate rent deduction under the old regime, with its own limits.
Sources and review
Last reviewed on by the BizToolsIndia editorial team. Official references:
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