How do I use the HRA calculator?

1. Enter monthly basic salary: Use the basic salary from your payslip, since HRA exemption is linked to basic pay and eligible DA rather than total CTC. 2. Add eligible Dearness Allowance: Enter DA only if it forms part of salary under your employment terms. If it does not, switch DA eligibility to No so the calculator excludes it from the salary base. 3. Enter HRA received and rent paid: Use monthly HRA and monthly rent. The calculator annualizes both figures before applying the statutory limits. 4. Select city type: Choose metro for Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, or Ahmedabad. From FY 2026-27 the Income-tax Rules, 2026 apply the 50% limit to all eight; other cities use the 40% non-metro limit. 5. Choose your tax bracket: Pick your marginal tax rate to estimate tax saved on the exempt HRA amount, including 4% health and education cess.

Who can claim HRA exemption?

Any salaried individual who receives HRA as part of their salary and pays rent for accommodation can claim HRA exemption under Section 10(13A). Self-employed individuals cannot claim HRA but can claim rent deduction under Section 80GG.

What is the difference between metro and non-metro HRA?

For metro cities the salary-based limit is 50% of salary; for non-metro cities it is 40%. From FY 2026-27 the Income-tax Rules, 2026 treat eight cities as metro: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad (earlier years: only the first four). Salary here means Basic plus only that portion of DA which forms part of salary under your terms of employment.

Can I claim HRA if I have a home loan?

Yes, you can claim both HRA exemption and home loan tax benefits simultaneously, provided you are paying rent for a different property and the home loan is for a property in a different city. If both are in the same city, the tax department may question the claim.

What documents do I need for HRA exemption?

You need rent receipts, rental agreement, and the landlord's PAN (mandatory if annual rent exceeds ₹1,00,000). Keep these documents handy for employer declaration and ITR filing.

What if my rent is less than 10% of my salary?

If your annual rent is less than 10% of your annual salary for HRA rules (Basic + eligible DA), the rent excess limit becomes zero, making your entire HRA taxable. The 10% threshold ensures that only rent above a basic living cost qualifies for exemption.

Tools/

HRA Exemption Calculator

Calculate your HRA tax exemption. Find out the maximum HRA you can claim to reduce your taxable income.

Monthly Basic Salary

₹5,000₹5,00,000

Monthly Dearness Allowance

₹0₹2,00,000

Does DA form part of salary for HRA?

Use “Yes” only when DA is part of salary as per your employment terms.

Monthly HRA Received

₹1,000₹3,00,000

Monthly Rent Paid

₹1,000₹5,00,000

City Type

Tax Bracket

Your marginal income tax rate. Used to estimate tax savings.

Annual HRA Exemption

₹2.4 L

based on Rule 3 (Rent − 10% of (Basic + DA))

Exempt HRA

₹2.4 L

Taxable HRA

₹0

Est. Tax Saved

₹74,880

at 30% slab (incl. 4% cess)

Exemption Rule Breakdown

Rule 1 — Actual HRA Received	₹2,40,000
Rule 2 — 50% of (Basic + DA)	₹3,00,000
Rule 3 — Rent − 10% of (Basic + DA)	₹2,40,000
Applied — Rule 3 (lowest)	₹2,40,000

About the HRA calculator

House Rent Allowance (HRA) is a salary component that can reduce taxable income when you receive HRA and pay rent for residential accommodation. This calculator estimates the annual exempt HRA, taxable HRA, and tax saved under Section 10(13A).

It is most useful for salaried employees in India who rent their home, especially when comparing metro and non-metro limits or checking whether Dearness Allowance forms part of salary for HRA purposes. The calculation uses monthly salary, eligible DA, HRA received, rent paid, city type, and your marginal tax bracket.

Treat the result as a planning estimate. Your employer may require rent receipts, a rental agreement, and landlord PAN where applicable before allowing the exemption through payroll.

Frequently Asked Questions

Enter monthly basic salary
Use the basic salary from your payslip, since HRA exemption is linked to basic pay and eligible DA rather than total CTC.
Add eligible Dearness Allowance
Enter DA only if it forms part of salary under your employment terms. If it does not, switch DA eligibility to No so the calculator excludes it from the salary base.
Enter HRA received and rent paid
Use monthly HRA and monthly rent. The calculator annualizes both figures before applying the statutory limits.
Select city type
Choose metro for Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, or Ahmedabad. From FY 2026-27 the Income-tax Rules, 2026 apply the 50% limit to all eight; other cities use the 40% non-metro limit.
Choose your tax bracket
Pick your marginal tax rate to estimate tax saved on the exempt HRA amount, including 4% health and education cess.

HRA exemption = least of (actual HRA received, 50% or 40% of salary, rent paid - 10% of salary)

Actual HRA received is monthly HRA × 12
Salary is basic plus eligible DA, annualized
50% applies for Delhi, Mumbai, Kolkata, and Chennai; 40% applies elsewhere
Rent paid - 10% of salary is floored at zero when rent is too low

Taxable HRA is actual HRA received minus exempt HRA. Estimated tax saved is exempt HRA multiplied by your marginal tax rate plus 4% cess.

Worked example

Suppose your monthly basic salary is ₹50,000, eligible DA is ₹10,000, monthly HRA is ₹25,000, monthly rent is ₹30,000, and you live in a metro city in the 30% tax bracket.

Actual annual HRA: ₹3,00,000
50% of annual salary: ₹3,60,000
Rent paid - 10% of salary: ₹2,88,000
Annual HRA exemption: ₹2,88,000
Taxable HRA: ₹12,000
Estimated tax saved: ₹89,856

Rule 3 is the lowest figure, so ₹2,88,000 of HRA is exempt and ₹12,000 remains taxable. At a 30% marginal slab with cess, the estimated tax saving is ₹89,856.

Last reviewed 3 Sep 2026 · Sources: Income Tax Department: slabs and deductions for salaried individuals, Income-tax Act, 2025 (Income Tax Department)

HRA exemption is available only if HRA is part of salary and you actually pay rent. Self-employed taxpayers need to evaluate Section 80GG instead.
From 1 April 2026 (FY 2026-27), eight cities get the 50% metro limit: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad. Gurugram, Noida, and every other city stay at 40%. For FY 2025-26 and earlier, only the first four counted as metro.
Landlord PAN is generally required when annual rent exceeds ₹1,00,000. Keep rent receipts, bank proof, and the rental agreement aligned.
You can claim HRA and home-loan benefits together only when facts support both claims, for example when you own a house elsewhere but rent your current residence.

See where your salary actually goes

Finest categorises rent, EMIs and spending from your bank statements, so exemptions and budgets rest on real transactions.

See where your salary goes

HRA Exemption Calculator

Inputs

Results

Exemption Rule Breakdown

About the HRA calculator

Frequently Asked Questions

See where your salary actually goes

Related calculators