TAX CALCULATOR
The least of three, not the largest.
HRA exemption is capped by whichever of three conditions is smallest. Most people assume they can claim the full allowance received — usually they cannot.
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Fields are pre-filled with typical values — type your own or drag the sliders, and everything recalculates instantly. Nothing is sent to a server.
Metro cities attract a 50% limit; other cities 40%.
Calculated on FY 2025-26 statutory rates. Indicative only — confirm against current notifications before filing.
HRA exempt from tax
₹2,40,000
Taxable HRA
₹0
HRA received
₹2,40,000
Exempt share of HRA
100%
HRA exemption is available under the old tax regime only. Under the new regime the full HRA is taxable.
How much of the HRA received escapes tax
Full breakdown
Step-by-step calculation
HOW IT WORKS
The formula used
Three conditions are computed and the smallest becomes the exemption.
Actual HRA received50% of basic + DA for metro, 40% for non-metroRent paid − 10% of basic + DAThe least of the three conditionsAvailable under the old regime only.UNDERSTANDING IT
About the hra calculator
House rent allowance is one of the most valuable exemptions available to salaried employees who rent their home — and one of the most commonly miscalculated, because the exemption is not simply the allowance received.
The law prescribes three tests, and the exemption is limited to whichever produces the smallest figure. This means an employee receiving generous HRA but paying modest rent will find the third condition binding, while an employee paying high rent on a low basic will find the second condition binding.
The exemption is available under the old tax regime only. Under the new regime the entire house rent allowance is taxable, which is a significant factor when choosing between regimes.
Worked example
Take annual basic plus DA of ₹4,80,000, HRA received of ₹2,40,000 and rent paid of ₹3,00,000 in a metro city.
Condition one is ₹2,40,000. Condition two is 50% of ₹4,80,000, which is ₹2,40,000. Condition three is ₹3,00,000 minus 10% of ₹4,80,000, which is ₹2,52,000. The least is ₹2,40,000, so that is exempt and the remaining HRA is taxable.
WHY IT HELPS
What this calculator is good for
See which condition binds
Knowing which test limits your exemption tells you what to change.
Plan rent against basic
The relationship between rent and basic decides how much is claimable.
Inform the regime decision
Losing HRA exemption is often the deciding factor against the new regime.
WATCH OUT
Common mistakes
These are the errors that most often produce a wrong number.
Claiming the full HRA received without applying the three-condition test.
Claiming HRA exemption under the new regime, where it is not available.
Using gross salary instead of basic plus dearness allowance in the calculation.
Claiming exemption without rent receipts, or without the landlord's PAN where rent exceeds the prescribed threshold.
HR TIPS
Practical guidance
Keep rent receipts
Exemption claims require documentation, and proofs are verified before the final computation.
Check the metro classification
Only specified cities attract the 50% limit; the rest are treated as non-metro.
Compare regimes with HRA included
Compute the old regime with the exemption applied before deciding.
QUESTIONS
HRA Calculator — frequently asked
It is the least of three amounts: actual HRA received, 50% of basic plus dearness allowance for metro cities or 40% for non-metro, and rent paid minus 10% of basic plus dearness allowance.
No. The house rent allowance exemption is available under the old regime only. Under the new regime the full HRA is taxable.
Delhi, Mumbai, Kolkata and Chennai are treated as metro cities for the 50% limit. All other cities attract the 40% limit.
It is possible where a genuine landlord-tenant relationship exists and rent is actually paid, supported by documentation. Such claims attract closer scrutiny.
Results are indicative and computed on FY 2025-26statutory rates using conventional salary-structure assumptions. Your actual figures depend on your employer’s structure, your state and your declarations. Confirm against current notifications before relying on these numbers for filing.
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