HRA calculator
The calculator estimates how much House Rent Allowance (HRA) from your pay may be exempt from tax. Use it when your payslip or Form 16 shows HRA, you rented a home, and you need to check the exemption before selecting a tax regime or filing your Income Tax Return (ITR).
The immediate decision is whether the formula, your records and your selected regime support the amount you intend to claim.
Enter your HRA details
| Calculator input | What to enter |
|---|---|
| Basic salary | Basic pay for the period during which you occupied the rented home |
| Dearness allowance | Only the part that forms part of retirement benefits, if applicable |
| HRA received | HRA received for the same period |
| Rent paid | Actual rent paid for the same period |
| City category | Select metro for Delhi, Mumbai, Chennai or Kolkata; otherwise select non-metro |
| Calculation period | The months to which the figures relate |
| Tax regime | Select old or new regime for an eligibility check |
Estimated HRA exemption: The lowest amount among the three values calculated from your inputs.
Taxable HRA: HRA received minus the estimated exempt amount.
The calculator should use matching periods. If your earnings, housing costs, employer or location changed during the Financial Year (FY), calculate each period separately.
The FY is the year in which the earnings arise. The Assessment Year (AY) is the following year, in which those earnings are assessed.
The exemption is generally relevant when you choose the old tax regime and satisfy the applicable conditions for the relevant FY and AY. Under the new tax regime, an exemption for HRA received as part of compensation is generally unavailable because that regime excludes it.
The calculator does not select a regime for you or calculate your complete tax liability.
Enter annual values only when every input covers the full year. Otherwise, enter monthly figures for one stable period or split the year into separate calculations.
This period check ensures that the figures can be compared correctly.
What does the HRA calculator result mean?
The result shows the estimated exempt HRA and the remaining portion included in taxable pay. It compares three statutory measures and treats the lowest value as the exemption, subject to eligibility, evidence and the tax regime chosen for the relevant FY and AY.
The calculator uses “salary” in a specific way. For this calculation, salary generally means basic salary plus dearness allowance when that allowance forms part of retirement benefits.
It can also include turnover-based commission when the applicable rule permits it. Gross earnings, bonuses and most other benefits do not automatically form part of this figure.
The first output is the estimated HRA exemption. It removes an eligible portion of HRA from taxable earnings.
It is not a deduction from total income, a tax rebate, a tax credit or a refund.
The second output is taxable HRA. If you received ₹1,80,000 and the calculator estimates ₹1,20,000 as exempt, the remaining ₹60,000 is included in taxable salary.
Your final tax liability depends on your overall earnings, selected regime, eligible deductions, rebate position and the rates applicable for the relevant FY and AY.
Here is what changes the result:
- Higher eligible salary can raise the percentage-based measure.
- Higher rent can raise the amount remaining after 10% of salary is subtracted, provided the housing costs are eligible.
- A metro location changes the applicable percentage from 40% to 50% under the HRA formula for the relevant FY and AY.
- Lower HRA received limits the exemption because the exempt amount cannot exceed the HRA received.
- A change in housing costs, earnings or location requires separate calculations for matching periods.
- The new tax regime generally makes this exemption unavailable because HRA exemption is excluded under that regime.
Delhi, Mumbai, Chennai and Kolkata are treated as metro cities for this formula. Bengaluru, Hyderabad, Pune and other cities use the non-metro percentage even though they are large urban centres.
A zero exemption can be a valid result. This happens when no HRA was received, no eligible rent was paid, rent did not exceed 10% of the relevant salary, or the selected regime does not permit the exemption.
The methodology below explains how the calculator applies these conditions.
How is HRA exemption calculated?
HRA exemption is calculated as the lowest of three amounts for the relevant period. The calculator applies the same salary, housing costs and location period to every part of the comparison.
- Actual HRA received
- Rent paid minus 10% of salary
- 50% of salary for a metro city, or 40% for a non-metro city
For this formula:
Eligible exemption = Lowest of actual HRA received, rent paid minus 10% of salary, and 40% or 50% of salary.
If the second measure produces a negative amount, the calculator treats it as nil. It does not create a negative exemption.
The exempt portion also cannot exceed the HRA actually received.
The calculator classifies the location in three practical situations. A qualifying metro uses 50% of salary.
Another location uses 40%. A move during the year requires separate calculations.
The location of the rented accommodation determines the applicable category for each period.
The HRA calculator assumes that you are a salaried employee who received House Rent Allowance and occupied rented accommodation. A self-employed person who does not receive HRA cannot use this exemption merely because housing costs were incurred.
A separate deduction may apply under different conditions, but it is not covered here.
The methodology reflects Section 10(13A) of the Income-tax Act, 1961, read with Rule 2A of the Income-tax Rules, 1962. Verify the provision and tax regime applicable to the relevant FY and AY with the Income Tax Department or a qualified tax professional.
Remember that the exempt figure is the lowest eligible amount, not automatically the full rent paid or the full allowance received.
This HRA calculator is updated for use on 11 August 2026, but its output is an estimate rather than a filing determination. Tax law, regime conditions and reporting requirements can change.
Verify the rules applicable to your FY and AY with the Income Tax Department. The worked example shows how to check each part of the calculation.
Worked example: calculating HRA exemption
This example calculates the exemption by comparing the HRA received, the rent-based figure and the location-based figure. Assume the inputs remain unchanged for the full FY and that the employee uses the old tax regime.
The figures illustrate the method and are not tied to a particular taxpayer.
Example
An employee lives in a rented house in Mumbai and has these annual inputs:
| HRA input | Annual amount |
|---|---|
| Basic salary | ₹6,00,000 |
| Eligible dearness allowance | ₹0 |
| HRA received | ₹2,40,000 |
| Rent paid | ₹3,00,000 |
| City | Mumbai |
| City category | Metro |
The calculator first establishes eligible salary:
Eligible salary = ₹6,00,000 basic salary + ₹0 eligible dearness allowance = ₹6,00,000
It then calculates the three measures:
| Exemption test | Calculation | Value |
|---|---|---|
| Actual HRA received | Given | ₹2,40,000 |
| Rent paid minus 10% of salary | ₹3,00,000 − ₹60,000 | ₹2,40,000 |
| 50% of salary for the applicable city | 50% × ₹6,00,000 | ₹3,00,000 |
The lowest value is ₹2,40,000. The estimated HRA exemption is therefore ₹2,40,000.
Taxable HRA is nil in this illustrative calculation.
Now compare that result with the same figures for a rented home in Bengaluru. The third measure becomes 40% of ₹6,00,000, or ₹2,40,000.
The estimated exemption remains ₹2,40,000 because that is still the lowest value.
If annual rent instead falls to ₹2,40,000, the rent-based measure becomes ₹1,80,000:
₹2,40,000 rent paid − ₹60,000, representing 10% of salary = ₹1,80,000
The estimated exempt amount then falls to ₹1,80,000. Taxable HRA becomes ₹60,000 because ₹2,40,000 was received and only ₹1,80,000 is exempt.
Under the new tax regime, these figures do not produce the same exemption because that regime generally does not permit HRA exemption for the relevant FY and AY. Compare the complete tax estimate under both regimes instead of selecting a regime based on HRA alone.
Every input, period and calculation in this example is visible. Your next step is to check whether your payslips, Form 16 and rent evidence support the figures you enter.
What documents should support an HRA claim?
An HRA claim should be supported by payroll records and credible evidence of the rent actually paid. The documents required depend on the employer’s payroll process and the facts of the tenancy.
Check the HRA shown on your payslips and Form 16. The amount received should correspond to the calculation period.
If it changed during the year, divide your basic pay, HRA and housing costs into matching periods.
Keep rent receipts, the rental agreement and payment records that identify the house, relevant period, amount and landlord. Digital payment records can support the payment trail.
They do not correct an inaccurate receipt or establish a tenancy that did not exist.
Your employer may request the landlord’s Permanent Account Number (PAN) when annual rent exceeds the threshold applicable to employer reporting for the relevant FY and AY. Confirm the threshold and documentation requirement with your employer and the Income Tax Department because these requirements can change.
Paying a family member for accommodation does not by itself establish or invalidate an HRA claim. The arrangement must be genuine.
The property should belong to the recipient, payments should occur, and the transaction should be supported by consistent records. The recipient may also need to report the rental income because the payment can be taxable in their hands.
Tax Deducted at Source (TDS) obligations on rent are separate from the HRA calculation. Whether TDS applies depends on the payer category, payment amount and provision applicable for the relevant FY and AY.
The calculator does not determine a tenant’s TDS obligation.
Before filing, compare the HRA shown in Form 16 with your payslips and supporting records. Also check the Annual Information Statement (AIS) and Form 26AS for other income and tax information.
These records do not replace evidence of the tenancy. Use the Income Tax Department portal to complete these checks before filing.
HRA calculator FAQs
The HRA calculator answers common questions about accuracy, assumptions, privacy and the next step after receiving an estimate. Read each answer with the regime and evidence conditions described above.
Is the HRA calculator result accurate?
The calculator is accurate only when its inputs match the applicable rule and cover the same calculation period. It provides an estimate.
Your employer or the Income Tax Department makes the relevant payroll or filing determination based on the return and supporting facts.
Can I claim HRA if I do not receive HRA in my salary?
No HRA exemption is available under this formula when your pay does not include House Rent Allowance. If you rent a home but receive no HRA, a separate deduction may be available under Section 80GG when you satisfy its conditions for the relevant FY and AY.
That deduction is outside this calculator.
Can I claim both HRA and a home-loan deduction?
An HRA exemption and eligible home-loan deductions can apply in the same year when the facts independently satisfy each provision. The location, occupation, ownership, rental payments and use of the loan must be genuine and documented.
The calculator does not test those facts.
Does the HRA calculator store my salary or rent data?
Whether inputs are stored, encrypted or transmitted depends on how the calculator has been implemented. Before entering personal information, check the displayed privacy notice.
Do not enter a landlord’s PAN unless the interface expressly requires it and explains how it is protected.
What if I changed rent or city during the year?
Split the calculation when your rent, pay, HRA or city category changes. Calculate each stable period separately.
Then add the eligible amounts to obtain the annual estimate.
What should I do after using the HRA calculator?
Compare the estimate with Form 16, payslips, rent receipts, the rental agreement and payment records. Then verify the tax regime and rules applicable to the relevant FY and AY through the Income Tax Department before filing your return or asking your employer to revise payroll records.
The HRA calculator begins with one practical question - how much of the allowance may be exempt - and leads to one practical decision: claim only the amount supported by the formula, your selected regime and your records for the relevant period.
For the filing context and the regime selected for the relevant year, cross-check the estimate with the Income Tax Department’s calculator guidance before acting.