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HRA Calculator

Find how much of your house rent allowance is tax-free, which limit decides it, and how much rent gives you the full exemption.

You live in

Big cities: Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru.

months

Your tax slab (old regime)

HRA exemption for the year

₹1,56,000

HRA received
₹2,40,000₹2.4 lakh
Taxable HRA
₹84,000
Tax saved at 30% (+ cess)
₹48,672
The exemption is the least of these three
  • HRA you receive₹2,40,000
  • Rent paid − 10% of basic + DA — the least₹1,56,000
  • 50% of basic + DA₹3,00,000

Rent up to ₹25,000 a month would raise your exemption; above that it stops rising.

HRA exemption is available only in the old regime. The new regime gives no exemption, so all HRA is taxed there.

Exempt and taxable HRA at different monthly rentsExemptTaxable

Exemption at different rents

YearExempt HRA (year)Taxable HRA (year)
Rent ₹0 a month₹0₹2,40,000
Rent ₹4,500 a month₹0₹2,40,000
Rent ₹9,500 a month₹54,000₹1,86,000
Rent ₹14,000 a month₹1,08,000₹1,32,000
Rent ₹19,000 a month₹1,68,000₹72,000
Rent ₹23,500 a month₹2,22,000₹18,000
Rent ₹28,000 a month₹2,40,000₹0
Rent ₹33,000 a month₹2,40,000₹0
Rent ₹37,500 a month₹2,40,000₹0

How to use this calculator

  1. Enter your monthly basic pay + DA, the HRA in your payslip and the rent you pay.
  2. Choose whether you live in one of the eight big cities.
  3. Set the months you paid rent this year and your old-regime tax slab.

The rule

Exempt HRA = least of (HRA received, rent − 10% of salary, 50% or 40% of salary)

"Salary" means basic pay plus dearness allowance. Source: Income-tax Act, 2025, Schedule III, Sl. No. 11, and rule 279 of the Income-tax Rules, 2026 (G.S.R. 198(E), 20 March 2026).

Example: the default figures give an exemption of₹1,56,000 a year, saving about ₹48,672at the 30% slab with cess.

Frequently asked questions

How is HRA exemption calculated?

It is the least of three amounts for the months you rent: the HRA you receive; the rent you pay less 10% of your basic pay and DA; and 50% of basic pay and DA if you live in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru, or 40% elsewhere. With basic + DA of ₹50,000, HRA of ₹20,000 and rent of ₹18,000 a month in a big city, the exemption is ₹1,56,000 a year.

Which cities count for the 50% limit?

Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru (rule 279 of the Income-tax Rules, 2026). Everywhere else the limit is 40%. In the example, living outside these cities gives an exemption of ₹1,56,000 instead of ₹1,56,000.

Can I claim HRA in the new tax regime?

No. The HRA exemption is available only in the old regime; in the new regime all HRA is taxed as salary. Use the income tax calculator to see which regime is better for you overall.

What if my rent is low?

If your rent is 10% of basic + DA or less, the exemption is nil: at ₹5,000 a month in the example, it is ₹0. Rent above ₹25,000 a month adds nothing more.

What if I rented for only part of the year?

The exemption is worked out only for the months you paid rent. Six months of the example gives ₹78,000.

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Last updated . For information only — not financial advice. Check the final figures with your lender or bank.