What is an HRA Calculator?
An HRA calculator works out how much of your House Rent Allowance is exempt from income tax under Section 10(13A) and how much is taxable. Enter your basic salary, DA, HRA received, rent paid and city to see your exemption instantly.
The calculator is updated for the Income Tax Rules 2026, which extend the 50% metro limit to Bengaluru, Hyderabad, Pune and Ahmedabad from FY 2026–27.
How to use the HRA Calculator
- 1Select the financial year.
- 2Enter your yearly basic salary and dearness allowance (DA that counts for retirement benefits).
- 3Enter the HRA received and rent paid for the year.
- 4Choose whether you live in a metro city.
- 5See your HRA exemption, taxable HRA and which limit applied.
HRA Calculation Formula
- Salary
- — Basic salary + DA (retirement-linked) for the period you rented
- 50%
- — For metro cities; 40% for all other cities
Example: Basic ₹6 lakh, HRA ₹2.4 lakh, rent ₹2.4 lakh, metro city
| (a) HRA received | ₹2,40,000 |
|---|---|
| (b) Rent − 10% of basic | ₹1,80,000 |
| (c) 50% of basic | ₹3,00,000 |
| HRA exemption (lowest) | ₹1,80,000 |
| Taxable HRA | ₹60,000 |
Metro cities for HRA
Up to FY 2025–26, only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% limit. From FY 2026–27, under the Income Tax Rules 2026, Bengaluru, Hyderabad, Pune and Ahmedabad are added, making eight cities in total. All other cities use the 40% limit.
Tips to claim HRA
- HRA exemption is available only in the old tax regime.
- Keep rent receipts and a rent agreement; give your landlord's PAN if rent exceeds ₹1 lakh a year.
- You can pay rent to your parents if they own the house — they must report it as income.
- If you don't receive HRA, you may claim a deduction under Section 80GG instead (old regime).
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.