HRA Exemption Calculator
Estimate how much house rent allowance may be exempt under the old tax regime.
Tax year 2026 - Updated June 2026
HRA exemption allowed
₹2,16,000
Monthly exemption equivalent
₹18,000
Taxable HRA
₹0
| Salary for HRA (basic + DA) | ₹5,40,000 |
| Actual HRA received | ₹2,16,000 |
| Rent paid minus 10% of salary | ₹2,46,000 |
| 50% of salary for metro city | ₹2,70,000 |
| HRA exemption allowed | ₹2,16,000 |
| Taxable HRA | ₹0 |
Formula used
- Salary for HRA = basic salary + dearness allowance, where applicable.
- HRA exemption is the least of: actual HRA received, rent paid minus 10% of salary, and 50% of salary for metro cities or 40% for non-metro cities.
- Taxable HRA = actual HRA received - exempt HRA.
- This calculator is relevant for old-regime tax planning. The new tax regime generally does not allow HRA exemption.
Quick answers
HRA Exemption Calculator FAQs
How is HRA exemption calculated?
HRA exemption is commonly the least of actual HRA received, rent paid minus 10% of salary, or 40%/50% of salary depending on non-metro or metro city.
Is HRA exemption available in the new tax regime?
Generally, HRA exemption is not available under the new tax regime. It is mainly relevant when comparing old-regime tax planning.
What counts as salary for HRA calculation?
For this estimate, salary usually means basic salary plus dearness allowance where applicable.
Do I need rent receipts for HRA?
Rent receipts are commonly used as HRA support. Employers may also ask for rent agreement, payment proof, or landlord PAN depending on rent amount and policy.
Does metro city status change HRA exemption?
Yes. Metro city calculation uses 50% of salary, while non-metro calculation uses 40% of salary in the common HRA formula.
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Assumptions
- Designed for India old-regime salary planning.
- Salary for HRA is basic salary plus dearness allowance where applicable.
- Metro city calculation uses 50% of salary; non-metro uses 40%.
- New tax regime generally does not allow HRA exemption.
- Actual eligibility may depend on rent receipts, landlord details, employer policy, and tax filing rules.
Disclaimer
The information and calculations provided on this website are for general informational and educational purposes only. Results are estimates based on publicly available tax rules and assumptions and may not reflect your actual tax liability or take-home pay. This content does not constitute tax, legal, accounting, or financial advice. Tax laws and regulations change frequently and vary based on individual circumstances. Consult a qualified tax professional, accountant, or financial advisor before making any financial decisions.
This website is not affiliated with the IRS, HMRC, Income Tax Department of India, or any government agency.