How to calculate the HRA exemption
- Type your monthly basic pay, any dearness allowance, HRA and rent.
- Choose your city and the number of months you paid rent.
- Read the exempt and taxable HRA and the three limits.
Examples
Mumbai, basic ₹50,000 a month, HRA ₹20,000 and rent ₹25,000: the limits for the year are ₹2,40,000 of HRA, ₹3,00,000 - ₹60,000 = ₹2,40,000 of rent above 10%, and 50% of salary, ₹3,00,000. All ₹2,40,000 of HRA is exempt.
Bengaluru, basic ₹50,000, HRA ₹25,000 and rent ₹30,000: in tax year 2026-27 the 50% limit is ₹3,00,000, so the full ₹3,00,000 is exempt. In FY 2025-26 Bengaluru was at 40%, so only ₹2,40,000 was exempt.
Jaipur, basic ₹40,000, HRA ₹16,000 and rent ₹12,000: rent above 10% of salary is ₹1,44,000 - ₹48,000 = ₹96,000, the lowest limit. ₹96,000 is exempt and ₹96,000 of HRA is taxed.
About this tool
If you pay rent and get house rent allowance, part of it can be tax free, but only under the old regime. Enter your basic pay, HRA and rent, and pick your city. From tax year 2026-27, Hyderabad, Pune, Ahmedabad and Bengaluru join Mumbai, Kolkata, Delhi and Chennai at 50% of salary. The page shows all three limits and which one sets your exemption.
Common questions
Which cities get 50% of salary?
From tax year 2026-27, rule 279 of the Income-tax Rules, 2026 lists Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Everywhere else is 40%. In FY 2025-26 only Mumbai, Kolkata, Delhi and Chennai were at 50%.
Can I claim HRA in the new regime?
No. The new regime, which is the default, doesn't allow the HRA exemption, so all of your HRA is taxed. Use the income tax calculator to see which regime costs less.
What counts as salary here?
Basic pay, plus dearness allowance when your terms of employment count it for retirement benefits. Other allowances and perks are left out.
Can I claim it for a home I own?
No. The exemption is only for rent you actually pay for a home you live in and don't own.
Is it free to use?
Yes. There's no sign-up, and you can use it as often as you like.
Is my text uploaded anywhere?
No. This tool runs inside your browser, so what you enter stays on your device.
Do I need to install anything?
No. It works in your browser on a computer or a phone.