What is an HRA calculator?
An HRA calculator works out how much of the House Rent Allowance in your salary is exempt from income tax under Section 10(13A) of the old Act (carried into the Income-tax Act, 2025) and Rule 2A of the income tax rules. Enter your basic salary, DA, the HRA your employer pays, the rent you pay and your city, and this free HRA calculator online shows the exempt HRA, the taxable HRA and which of the three limits applied. It follows the rules for FY 2026-27, as of September 2026.
What is HRA in salary?
HRA (House Rent Allowance) is a part of salary that employers pay to help cover the cost of rented housing. It shows as a separate line on your salary slip, usually 40–50% of basic. If you live in a rented home and pay rent, part or all of the HRA is tax-free. If you own the house you live in, or do not pay rent, the whole HRA is taxable.
HRA exemption rules and formula
The HRA exemption is the least of these three amounts, all calculated for the months you actually lived in rented accommodation:
- Actual HRA received from your employer
- Rent paid minus 10% of salary
- 50% of salary if you live in a metro city, or 40% of salary for a non-metro city
HRA exemption = Minimum of (HRA received, Rent − 10% × Salary, 50% or 40% × Salary)
Here salary means basic pay + dearness allowance (if it counts for retirement benefits) + commission fixed as a percentage of turnover. It does not include other allowances or perquisites. Taxable HRA = HRA received − HRA exemption.
New metro list for HRA from FY 2026-27
For decades, only Mumbai, Delhi, Kolkata and Chennai counted as metro cities for the 50% limit. Under the Income-tax Rules, 2026, which apply from 1 April 2026, Bengaluru, Hyderabad, Pune and Ahmedabad were added. So there are now eight cities where you can claim 50% of salary:
| City type | Cities | Limit |
|---|---|---|
| Metro (for HRA) | Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad | 50% of salary |
| Non-metro | All other cities and towns, including Gurugram, Noida, Jaipur, Lucknow, Kochi | 40% of salary |
This matters most for people in Bengaluru, Hyderabad and Pune, where rents are high. An HRA calculator for Bangalore that still uses 40% will understate your exemption for FY 2026-27. For FY 2025-26 and earlier years, Bengaluru, Hyderabad, Pune and Ahmedabad remain at 40%. Note that the city is where you live and pay rent, not where your employer is registered. Also note that Delhi means the NCT of Delhi; Gurugram and Noida are still non-metro.
How to calculate HRA: example
You live in Bengaluru, your basic salary is ₹50,000 a month, you get HRA of ₹25,000 a month and you pay rent of ₹22,000 a month. For the year:
- Salary = ₹6,00,000; HRA received = ₹3,00,000; rent = ₹2,64,000.
- Limit 1 – actual HRA: ₹3,00,000
- Limit 2 – rent minus 10% of salary: 2,64,000 − 60,000 = ₹2,04,000
- Limit 3 – 50% of salary (Bengaluru is now a metro): ₹3,00,000
The HRA exemption is the least, ₹2,04,000, and the taxable HRA is ₹96,000. These are the default values in the calculator above. Before FY 2026-27 the third limit would have been 40% (₹2,40,000); the answer is the same here because rent was the binding limit, but at higher rents the new 50% limit gives a bigger exemption.
How to calculate HRA in salary per month
Choose "per month" and enter monthly figures; the calculator converts them to yearly amounts. Monthly exempt HRA is the yearly figure ÷ 12. If your rent or salary changed during the year, calculate each period separately and add them up – the rule works month by month.
HRA under the new tax regime
The HRA exemption is not available under the new tax regime. If you choose the new regime, the entire HRA is added to your taxable salary. You can still gain from the new regime's lower rates and ₹12 lakh rebate. To see whether HRA plus your other deductions make the old regime cheaper, enter the exemption from this page into the income tax calculator, which compares both regimes side by side.
How to claim HRA exemption
- Give your employer rent receipts and a rent agreement, and declare the rent in your investment declaration.
- If yearly rent is above ₹1,00,000, you must give the landlord's PAN.
- If your employer did not account for HRA, you can still claim the exemption when you file your income tax return.
- Rent paid to parents is allowed if you actually pay it and they show it as income. Rent paid to a spouse is usually questioned.
- If you get no HRA at all (self-employed or no HRA in salary), look at the separate deduction for rent paid (Section 80GG in the old Act), capped at ₹5,000 a month.
HRA for central government employees
Central government employees receive HRA at 30%, 20% or 10% of basic pay depending on whether the city is class X, Y or Z. That is the HRA paid. The tax exemption on it is still worked out with the same least-of-three formula above. Enter your basic pay plus DA as salary and the HRA shown on your pay slip.
Tips to get the most from HRA
- The exemption is highest when rent is at least 10% of salary more than the HRA you receive.
- If your company lets you restructure pay, a higher HRA share helps only up to the 50% or 40% limit.
- Keep rent receipts for the whole year; missing months cannot be claimed.
To see what HRA and other components mean for your monthly pay, try the salary calculator.
HRA calculation formula (India) in one line
The HRA calculator formula India uses is: exempt HRA = minimum of (actual HRA, rent − 10% of salary, 50% or 40% of salary). That HRA calculation formula is set by the income tax rules and is the same for private and government employees; this HRA calculator for income tax in India simply applies it for you.
HRA calculator logic in XLS
With yearly salary (basic + DA) in B1, HRA received in B2, rent in B3 and 1 for metro in B4, an HRA calculator XLS formula is =MIN(B2, MAX(0, B3-0.1*B1), IF(B4=1,0.5,0.4)*B1). That is the whole HRA calculator logic – the MAX stops the rent limit going negative when rent is below 10% of salary.
HRA calculator for FY 2025-26 (AY 2026-27)
For FY 2025-26 and earlier years only Mumbai, Delhi, Kolkata and Chennai were metros, so an HRA calculator for FY 2025-26 must use 40% for every other city, including Bengaluru and Hyderabad. The HRA calculator for FY 25-26 is therefore this page with the city set to "Any other city" unless you lived in one of those four.
HRA calculation for Hyderabad: FY 2025-26 vs FY 2026-27
Basic ₹60,000 a month, HRA ₹30,000 and rent ₹35,000 in Hyderabad. Yearly: salary ₹7,20,000, HRA ₹3,60,000, rent ₹4,20,000. Rent − 10% of salary = ₹3,48,000. For FY 2025-26 the city limit is 40% = ₹2,88,000, so the exemption is ₹2,88,000. From FY 2026-27 it is 50% = ₹3,60,000, so the exemption rises to ₹3,48,000 – ₹60,000 more tax-free HRA. The same shift applies to an HRA calculator for Bangalore, Pune or Ahmedabad; an HRA calculator for Delhi or Mumbai uses 50% in both years.
The HRA calculator for AY 2025-26 (FY 2024-25) follows the same four-metro rule as FY 2025-26.
HRA calculator for non metro cities with example
Here is an HRA calculator with example for a non-metro city such as Jaipur: basic ₹40,000 a month, HRA ₹16,000, rent ₹18,000. Yearly salary is ₹4,80,000, HRA ₹1,92,000 and rent ₹2,16,000. The limits are ₹1,92,000 (actual HRA), ₹1,68,000 (rent − 10% of salary) and ₹1,92,000 (40% of salary), so the exempt HRA is ₹1,68,000 and ₹24,000 is taxable. In an HRA calculator for non metro cities the third limit is always 40%.
HRA calculation rules with example: what counts as salary
Under the HRA calculation rules, salary is basic + DA that counts for retirement benefits + commission fixed as a percentage of turnover. Bonus, special allowance and other allowances are left out, which is why the HRA exemption is often lower than people expect.
HRA calculator month wise and yearly
The exemption is worked out for each month you pay rent, so an HRA calculator month wise is needed when rent, salary or city changes during the year. Example: rent ₹15,000 for April–September and ₹20,000 for October–March – calculate each half separately (enter the six-month totals with the yearly option) and add the two exemptions. For a steady year, a yearly HRA calculator gives the same answer as twelve monthly ones.
How to calculate HRA percentage
HRA is usually fixed as a percentage of basic: 50% in metro cities and 40% elsewhere at most private companies, because the exemption cannot exceed those limits. To find your HRA percentage, divide the HRA on your pay slip by basic pay and multiply by 100: ₹20,000 ÷ ₹50,000 × 100 = 40%. The HRA calculator percentage limit (50% or 40%) applies to salary, not to your rent.
HRA calculator for new tax regime?
There is no HRA exemption in the new regime, so an HRA calculator for the new tax regime always shows the full HRA as taxable. The HRA calculation under new tax regime matters only for comparison: if your old-regime exemption plus other deductions is large, the old regime may still win. Check both in the income tax calculator.
HRA calculator for central government employees
Since DA crossed 50% in January 2024, central government HRA is 30% of basic in X cities, 20% in Y cities and 10% in Z cities. The HRA calculation for central govt employees has two steps: HRA paid = basic × city rate, then the exemption uses the least-of-three rule above. Example: Level 6 basic ₹35,400 in a Y city gives HRA of ₹7,080 a month. HRA calculation during half pay leave: under central rules HRA generally continues at the same rate during leave, including half pay leave, for up to 180 days. State employees, for instance in an HRA calculation for Kerala government employees, get HRA at their state's rates, but the income tax exemption uses the same formula.
How do we calculate HRA? Step by step
- Add basic + DA (retirement-linked) + turnover commission for the year – that is salary.
- Take the actual HRA received.
- Subtract 10% of salary from the rent paid.
- Take 50% of salary (eight metro cities from FY 2026-27) or 40% (other cities).
- The smallest of steps 2–4 is exempt; the rest of the HRA is taxable.
This online HRA calculator for India does these steps instantly. The Income Tax Department's portal offers a similar HRA calculator; results match when you use the same inputs. The HRA deduction calculator in India for people without HRA in salary is different – see Section 80GG above.
Frequently asked questions
How is HRA exemption calculated?
HRA exemption is the least of: actual HRA received; rent paid minus 10% of basic + DA; and 50% of basic + DA in a metro city or 40% in other cities.
Which cities are metro cities for HRA in 2026?
From FY 2026-27, eight cities qualify for the 50% limit: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All other cities use 40%.
Can I claim HRA in the new tax regime?
No. HRA exemption is available only under the old tax regime. Under the new regime, the whole HRA is taxable.
What is HRA percentage in salary?
Private employers usually set HRA at 40% to 50% of basic salary. Central government HRA is 30%, 20% or 10% of basic depending on the city class.
Is landlord PAN mandatory for HRA?
Yes, if the rent you pay is more than ₹1,00,000 a year, you must give your employer the landlord's PAN.
Can I calculate HRA from CTC?
First find basic salary from CTC (often 40–50%), then HRA (often 40–50% of basic). Use those figures with your rent in the HRA calculator.
Is HRA calculated monthly or yearly?
The rule works month by month, but if salary and rent were the same all year you can calculate it on yearly totals. The calculator accepts either.
How is HRA calculated for FY 2025-26?
Use the least of actual HRA, rent minus 10% of salary, and 50% of salary for Mumbai, Delhi, Kolkata and Chennai or 40% for every other city. Bengaluru, Hyderabad, Pune and Ahmedabad get 50% only from FY 2026-27.
What is the HRA for central government employees?
30% of basic pay in X cities, 20% in Y cities and 10% in Z cities, since DA crossed 50%. The tax exemption is then worked out with the usual least-of-three formula.
Can I claim HRA under the new tax regime?
No. HRA exemption is available only in the old regime; under the new regime the whole HRA is taxable.
Last updated 2026-09-18