HRA Exemption Calculator — House Rent Allowance Tax Relief (India)
Find your HRA tax exemption in seconds: enter your monthly basic salary, HRA component and actual rent, then choose metro or non-metro city to see the exempt amount, taxable HRA and which of the three conditions limits your relief.
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City type
Lowest of the three conditions — reduces your taxable income
₹156,000
exemptHRA exemption (tax-free)
65%
Taxable HRA
35%
- 1
Condition 1 — Actual HRA
20,000 × 12 = 240,000 - 2
Condition 2 — 50% of basic
50% × 600,000 = 300,000 - 3
Condition 3 — Rent − 10% basic
216,000 − 10% × 600,000 = 156,000 - 4
HRA exemption (minimum of three)
min(240,000, 300,000, 156,000) = 156,000The binding (smallest) condition limits the tax-free amount.
How does this calculator work?
HRA exemption = minimum of (1) total HRA received, (2) 50% of basic for metros / 40% elsewhere, (3) rent paid minus 10% of basic — all on an annual basis. The surplus over the exemption is taxable. Only available under the old income tax regime in India.
Formula
How this is calculated
Under Section 10(13A) of the Indian Income Tax Act, the HRA exemption is the lowest of three annual figures: (1) the entire HRA received from your employer; (2) 50% of your basic salary if you live in Delhi, Mumbai, Kolkata or Chennai, or 40% for any other city; and (3) the actual rent you paid in the year minus 10% of your basic salary. The binding (smallest) condition determines how much of your HRA component is shielded from income tax; the remainder is taxable and added to your gross income. All monthly figures are multiplied by 12 to compare them on an annual basis.
Note that you can claim this exemption only if you are actually paying rent and living in rented accommodation — you cannot claim it for rent paid to a spouse. If rent paid in the year exceeds ₹1 lakh in total you must quote the landlord's PAN in your return. These rules apply under the old tax regime; the new default regime (FY 2023-24 onwards) does not offer this exemption. The figures are for illustration using 2025-26 rules; consult a chartered accountant for personalised advice.
Frequently asked questions
Yes — if you own a house in one city but rent accommodation in another city where you work, you can claim HRA exemption for the rented property. You may also claim the home-loan interest deduction on the owned property simultaneously.
You must obtain the landlord's PAN and furnish it to your employer when submitting rent receipts. If the landlord is a non-resident, TDS rules may also apply.
No. The new default tax regime (introduced from FY 2020-21 and made default from FY 2023-24) does not allow the HRA exemption or most other deductions. You must opt in to the old regime to claim HRA relief.
Also known as
TG we-Calculate Editorial Team. (2026). HRA Exemption Calculator — House Rent Allowance Tax Relief (India) [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/hra-exemption-calculator
TG we-Calculate Editorial Team. "HRA Exemption Calculator — House Rent Allowance Tax Relief (India)." TG we-Calculate. 2026. https://we-calculate.com/calculator/hra-exemption-calculator.
TG we-Calculate Editorial Team, "HRA Exemption Calculator — House Rent Allowance Tax Relief (India)," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/hra-exemption-calculator
@misc{wecalculate_hra_exemption_calculator, title = {HRA Exemption Calculator — House Rent Allowance Tax Relief (India)}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/hra-exemption-calculator}}, year = {2026}, note = {TG we-Calculate} }
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