India HRA Calculator
Find how much of your HRA is tax-free under the old regime, how much is taxed, and the tax you save on the rent you pay.
Old tax regime only. The new regime (India's default) gives no HRA exemption and no 80GG deduction, so all of your HRA is taxed there.
House rent allowance on your payslip.
50% cities: Delhi, Mumbai, Kolkata, Chennai. From 1 April 2026 the Income-tax Rules 2026 also list Bengaluru, Hyderabad, Pune, Ahmedabad check.
More salary details
Only commission paid as a fixed % of the sales you bring in counts.
Changes during the year
The fields above are your first stretch. Each stretch is worked out on its own, then added up.
Stretch 2
Stretch 3
Stretch 4
Your tax rate
Old regime, under 60: 5% from ₹2.5 lakh, 20% from ₹5 lakh, 30% above ₹10 lakh of taxable income.
After other deductions such as 80C. Left blank, your salary is used.
How your tax-free HRA is worked out
Tax-free HRA = the smallest of three amounts.
- 1
Salary for HRA
Basic ₹50,000× 12 months= ₹6,00,000
- 2
Rent minus 10%
Rent ₹2,64,000− ₹60,000= ₹2,04,000
- 3
City limit
50% × ₹6,00,000= ₹3,00,000
- 4
Smallest is tax-free
HRA ₹2,40,000Rent ₹2,04,000City ₹3,00,000Tax-free ₹2,04,000
Read more: the formula, a worked example, 80GG, landlord PAN and the city list
HRA (house rent allowance) is the part of your pay meant for rent. If you rent your home and choose the old tax regime, some or all of it is tax-free. Under the new regime, which is the default, there is no HRA exemption: all of your HRA is taxed like the rest of your pay. Use our India income tax calculator to see which regime leaves you better off.
The formula
salary = basic + DA that counts for retirement benefits + commission as a fixed % of sales
tax-free HRA = the smallest of:
(a) HRA you get
(b) rent you pay − 10% of salary
(c) 50% of salary in a metro city, 40% anywhere else
taxable HRA = HRA you get − tax-free HRA
tax saved = tax-free HRA × slab rate × (1 + surcharge) × 1.04
All three amounts are for the months you actually rent. If your pay, rent or city changes during the year, work out each stretch on its own and add them up. Advanced mode does this for you.
Worked example
Basic pay ₹50,000 a month, HRA ₹20,000 a month, rent ₹22,000 a month in Delhi, for 12 months. Salary for HRA is ₹50,000 × 12 = ₹6,00,000.
- (a) HRA you get: ₹20,000 × 12 = ₹2,40,000
- (b) Rent − 10% of salary: ₹2,64,000 − ₹60,000 = ₹2,04,000
- (c) 50% of salary (Delhi is a metro): ₹3,00,000
The smallest is ₹2,04,000, so that much is tax-free and ₹2,40,000 − ₹2,04,000 = ₹36,000 is taxed. At a 20% slab plus 4% cess, the exemption saves ₹2,04,000 × 20% × 1.04 = ₹42,432 a year. Paying ₹25,000 a month in rent (₹3,00,000 − ₹60,000 = ₹2,40,000) would make all of the HRA tax-free; paying more than that adds nothing.
When pay or rent changes during the year
Say you spend 6 months on the example above, then get a pay rise to basic ₹60,000 and HRA ₹24,000 and move to Jaipur, paying ₹40,000 rent. Stretch 1: the smallest of ₹1,20,000, ₹1,32,000 − ₹30,000 = ₹1,02,000 and ₹1,50,000 is ₹1,02,000. Stretch 2: the smallest of ₹1,44,000, ₹2,40,000 − ₹36,000 = ₹2,04,000 and 40% × ₹3,60,000 = ₹1,44,000 is ₹1,44,000. Total tax-free: ₹2,46,000. Doing the sum on yearly totals would wrongly give ₹2,64,000.
No HRA? Section 80GG
If your employer pays no HRA (or you are self-employed) and you pay rent, the old regime lets you deduct the smallest of: ₹5,000 a month; 25% of your total income; and rent minus 10% of total income. "Total income" here is after your other deductions but before this one. Example: rent ₹15,000 a month and total income ₹8,00,000. The three amounts are ₹60,000, ₹2,00,000 and ₹1,80,000 − ₹80,000 = ₹1,00,000, so you deduct ₹60,000. You can't claim it if you, your spouse, your minor child or your HUF own a home in the city where you live or work, and you file a declaration (Form 10BA under the old Act) check.
The 50% (metro) cities
| City | Limit |
|---|---|
| Delhi | 50% of salary |
| Mumbai | 50% of salary |
| Kolkata | 50% of salary |
| Chennai | 50% of salary |
| Bengaluru | 50% from 1 April 2026 (Income-tax Rules 2026) check |
| Hyderabad | 50% from 1 April 2026 (Income-tax Rules 2026) check |
| Pune | 50% from 1 April 2026 (Income-tax Rules 2026) check |
| Ahmedabad | 50% from 1 April 2026 (Income-tax Rules 2026) check |
| Everywhere else | 40% of salary |
If your employer still uses 40% for a newly listed city, the "metro" choice lets you match their figure, and you can claim the difference when you file your return.
Rules worth knowing
- Landlord's PAN: if your rent is more than ₹1 lakh a year (about ₹8,334 a month), your employer will ask for your landlord's PAN check.
- TDS on rent: if you pay more than ₹50,000 a month, you must deduct 2% TDS from the rent and pay it to the government check.
- Renting from parents is allowed if they own the home and show the rent as income. Rent paid to your spouse is generally not accepted.
- Living in your own home gives no HRA exemption, even if you get HRA.
- Keep rent receipts or bank transfer records and your rent agreement. If your employer missed the exemption, you can still claim it in your tax return.
Old-regime rules for tax year 2026-27 under the Income-tax Act 2025 and Income-tax Rules 2026, as of 10 October 2026 (not yet confirmed on incometax.gov.in). Items marked "check" could change or are worth confirming with your employer or a tax adviser. This calculator gives an estimate, not tax advice.
Common questions
How is HRA exemption calculated?
The tax-free part of your HRA is the smallest of three amounts: the HRA you actually get, the rent you pay minus 10% of your salary, and 50% of your salary in a metro city or 40% anywhere else. Salary here means basic pay plus DA that counts for retirement benefits, plus commission as a fixed % of sales. Whatever HRA is left over is taxed like the rest of your pay.
Can I claim HRA exemption in the new tax regime?
No. Under the new regime, which is the default, there is no HRA exemption, so all of your HRA is taxed like the rest of your pay. The exemption only works if you choose the old regime. Use the India income tax calculator to see which regime leaves you better off once HRA and your other deductions are counted.
Which cities count as metro for HRA?
Delhi, Mumbai, Kolkata and Chennai get the 50% limit. Bengaluru, Hyderabad, Pune and Ahmedabad were added from 1 April 2026 under the Income-tax Rules 2026. Everywhere else uses 40% of salary. If your employer still uses 40% for a newly listed city, you can claim the difference when you file your return.
Do I need my landlord's PAN to claim HRA?
If your rent is more than ₹1 lakh a year (about ₹8,334 a month), your employer will ask for your landlord's PAN. Keep rent receipts or bank transfer records and your rent agreement as well. These rules are worth confirming with your employer or a tax adviser, as they could change.
Can I claim HRA if I pay rent to my parents?
Yes. Renting from your parents is allowed if they own the home and show the rent you pay as their income. Rent paid to your spouse is generally not accepted. Living in your own home gives no HRA exemption, even if your employer pays you HRA.
I don't get HRA. Can I still save tax on rent?
In the old regime, Section 80GG lets you deduct the smallest of ₹5,000 a month, 25% of your total income, and rent minus 10% of total income. You can't claim it if you, your spouse, your minor child or your HUF own a home in the city where you live or work, and you need to file a declaration.
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