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Salary, HRA and rent

Enter monthly or yearly amounts in rupees. Fields marked * are needed.

The amounts I enter are
Only DA that counts for retirement benefits. Leave blank if you get none.
From 1 April 2026 the 50% limit applies to eight cities: Bengaluru, Hyderabad, Pune and Ahmedabad were added to Delhi, Mumbai, Kolkata and Chennai.

Your result appears here after you press Calculate.

Indicative calculation for informational purposes only. Tax liability depends on applicable law, taxpayer circumstances and the relevant financial year. Please verify the result before filing.

About this HRA calculator


House Rent Allowance is part of salary, and only a part of it is exempt from tax. The exempt part is the lowest of three amounts, so the answer depends on your salary, the rent you pay and the city you live in.

This calculator works out each of the three limits, marks the lowest and shows the exempt and the taxable HRA for the year and per month.

The city matters because the salary-based limit is higher in certain large cities, and that list is not the same in every year. The calculator covers FY 2025-26 and FY 2026-27 and uses the list for the year you choose.

The three-limit calculation

  1. Limit 1 — HRA actually received

    The exemption can never be more than the HRA your employer paid you.

  2. Limit 2 — Rent paid less 10% of salary

    Take the rent you paid and subtract 10% of salary. If the rent is not more than 10% of salary, this limit is nil and so is the exemption.

  3. Limit 3 — A percentage of salary

    50% of salary if the rented home is in one of the listed cities, 40% anywhere else.

  4. The lowest is exempt

    The smallest of the three amounts is exempt. The rest of the HRA received is taxable as salary.

Limits and cities the calculator uses

HRA limits by financial year
Financial yearCities with the higher limitThose citiesOther places
FY 2026-27 Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Pune 50% of salary 40% of salary
FY 2025-26 Chennai, Delhi, Kolkata, Mumbai 50% of salary 40% of salary

In both years the rent limit is the rent paid less 10% of salary, and the exemption can never be more than the HRA actually received.

Figures last checked on 3 October 2026. Tax rules change — the year and rule set used are shown with every result.

What this calculator does not cover

  • HRA exemption is available only under the old tax regime. Under the new regime the whole HRA is taxable.
  • If salary, rent or city changed during the year, the exemption is worked out separately for each period. Run the calculator for each period with yearly amounts, or use monthly amounts for a typical month.
  • The deduction for rent paid by people who do not receive HRA is a different provision and is not calculated here.
  • Rent must actually be paid for a home you live in and do not own. Rent receipts, the rent agreement and the landlord's details may be asked for.

Claiming HRA in your return

If your employer did not give the full exemption, or you changed jobs or cities during the year, HRA can still be claimed in the return. We work it out period by period and file the return.

Income Tax Filing Tax Planning

Frequently asked questions

Basic salary plus dearness allowance, where the DA counts for retirement benefits. Commission paid as a fixed percentage of turnover is also included. Other allowances and perquisites are not.

For FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai. From FY 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad are added, making eight cities. Everywhere else the limit is 40% of salary.

No. The HRA exemption is available only if you choose the old regime. The Income Tax Calculator on this site compares both regimes once you know your exempt HRA.

The second limit is rent paid less 10% of salary. If the rent is not more than 10% of your basic salary plus DA, that limit is nil, and the exemption is the lowest of the three limits.

On where the rented home is. If you work in a listed city but rent a home outside it, the 40% limit applies.