HRA Exemption Calculator
Calculate your house rent allowance exemption under the old tax regime, with the 2026 metro-city list.
About the HRA Exemption Calculator
HRA is exempt up to the lowest of: the HRA you receive; rent paid minus 10% of salary (basic + DA); and 50% of salary in a metro city or 40% elsewhere. The Income-tax Rules, 2026 extended the 50% limit to Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad from tax year 2026-27. You must report your relationship with the landlord, and give the landlord's PAN if rent exceeds ₹1 lakh a year.
The formula
Exemption = min(HRA, rent − 10% × salary, 50% or 40% × salary)
Worked example
Example: HRA exemption = ₹1,94,000
- Inputs: Basic salary + DA (yearly): ₹6,60,000; HRA received (yearly): ₹3,30,000; Rent paid (yearly): ₹2,60,000; City: Metro (50%).
- Formula: Exemption = min(HRA, rent − 10% × salary, 50% or 40% × salary)
- Result: HRA exemption = ₹1,94,000
Questions people ask
Can I claim HRA in the new regime?
No. HRA exemption is available only in the old regime.
Can I pay rent to my parents?
Yes, if they own the home and declare the rent as income; you must now disclose the relationship.