Which cities are treated as metro for this estimate?

This calculator uses Delhi, Mumbai, Kolkata and Chennai as metro cities for the 50% limb. Other locations use the 40% limb.

Does paying more rent always increase exemption?

Not always. Rent affects only one of the three limits, and the final exemption cannot exceed the smallest limit or the HRA actually received.

Can this calculator determine my final tax?

No. It estimates HRA exemption only. Your final tax depends on regime, total income, deductions, documentation and the rules applicable to your circumstances.

Can I claim HRA exemption if I do not receive HRA?

No. The first limb caps the exemption at the HRA actually paid to you, so with no HRA there is nothing to exempt. Rent may be relevant under other provisions, which this calculator does not cover.

Why is my exemption lower than the rent I paid?

Only rent above ten per cent of basic plus eligible DA counts, and the exemption is still capped by the HRA received and the city percentage. The smallest of the three wins.

Does this work under the new tax regime?

The rent-based HRA exemption belongs to the old-regime framework. Compare both regimes before assuming the exemption applies to you.

Should I enter monthly or annual figures?

Annual, and consistently across salary, HRA and rent. Mixing monthly and annual values is the most common cause of a wrong result.

HRA Calculator

Q: How is HRA exemption calculated?

The exemption is generally the least of HRA actually received, rent paid minus 10% of basic salary plus eligible DA, and 50% of salary for a metro city or 40% for a non-metro city.

Estimate the exempt and taxable portions of your House Rent Allowance using annual salary, rent and city details.

Under 30 seconds

Updated 1 Sept 2026

12,450people used this

Estimated exempt HRA

₹1,80,000

Limited by rent minus 10% of salary.

Estimated taxable HRA

₹60,000

HRA received less the estimated exemption.

Salary used

₹6,00,000

Basic plus entered DA.

Exempt share

75%

Share of HRA received estimated as exempt.

This HRA calculator applies the least-of-three HRA exemption framework: HRA received, rent paid minus 10% of basic salary plus eligible DA, and 50% or 40% of that salary for metro or non-metro cities. It is an estimate under the old tax regime, not an official tax assessment.

Visual breakdown

A visual view of your calculation.

Interactive charts arrive here soon.

Smart Insights

Generated from the numbers you entered — no guesswork.

The estimated exemption is ₹1,80,000, the lowest of the three framework limits.
Your selected city applies a 40% salary limit.
Rent above 10% of basic plus eligible DA contributes to the rent-based limb; rent below that threshold does not create an exempt amount under this test.
This estimate does not calculate final income tax or guaranteed savings.

What is the HRA Calculator?

What the tool does, who it is for and what it cannot tell you.

The HRA calculator estimates how much of the house rent allowance in your salary is exempt from tax and how much stays taxable. It applies the least-of-three test used in the old tax regime framework: the HRA you received, rent paid minus ten per cent of basic salary plus eligible dearness allowance, and fifty per cent of that salary in a metro city or forty per cent elsewhere.

It is for salaried employees who pay rent and want to check a payroll figure or plan a rent and salary structure. The result shows which of the three limbs capped your exemption, which explains why extra rent sometimes changes nothing at all.

It estimates one exemption, not your tax. Documentation requirements, your employer's payroll treatment, the regime you choose and your total income all affect the final outcome. Nothing here is tax advice.

How does the HRA Calculator work?

Each step the calculator runs, in plain language.

1
Build the salary base
Basic salary and eligible DA are combined for the annual framework.
2
Calculate three limits
The calculator tests HRA received, rent above 10% of salary, and the city percentage limit.
3
Use the lowest limit
The smallest of those three amounts is the estimated exempt HRA; the rest is taxable HRA.

What to enter in each field

The exact figure each input expects, so the result means what you think it means.

Annual basic salary: Your yearly basic pay only. Using gross salary or cost to company inflates the city-percentage limb and produces an exemption you cannot claim.
Annual dearness allowance: Include DA only where it forms part of retirement benefits and therefore counts in the salary base for this framework. Otherwise leave it at zero.
Annual HRA received: The house rent allowance actually paid to you for the year, as shown in your payslips — this is a hard ceiling on the exemption.
Annual rent paid: Total rent you actually paid for the year, supported by receipts. Only the amount above ten per cent of basic plus eligible DA feeds the rent limb.
City type: Metro means Delhi, Mumbai, Kolkata or Chennai and applies the fifty per cent limb. Everywhere else uses forty per cent, based on where you rent, not where your employer is.

HRA Calculator formula

The exact maths behind every number on this page.

Exempt HRA = least of (HRA received, rent − 10% of salary, 50%/40% of salary)

salary: Basic salary + eligible DA for the period
50% / 40%: Metro / non-metro city limit

Negative rent-minus-10% results are treated as zero. The calculation is an annual estimate under the old tax regime framework.

HRA Calculator calculation example

₹6,00,000 basic salary, no DA, ₹2,40,000 HRA, ₹2,40,000 rent and a non-metro city.

1HRA received₹2,40,000
2Rent − 10% salary₹1,80,000
340% salary₹2,40,000
4Lowest amount₹1,80,000 estimated exemption

The remaining ₹60,000 of HRA is estimated as taxable under these assumptions.

Important assumptions

What this calculation includes, and what it leaves out.

This uses the established least-of-three HRA exemption framework for salaried employees paying rent under the old tax regime.
DA is included only as entered; the framework generally considers DA that forms part of retirement benefits.
Metro is treated as Delhi, Mumbai, Kolkata or Chennai; all other locations are treated as non-metro.
Eligibility, documentation, employer payroll treatment, regime choice and tax rules can affect actual treatment. This is not tax or legal advice.

Sources we follow for figures that change

Income Tax Department — House Rent Allowance

Financial tips

Practical guidance to act on your result.

Use annual figures consistently for salary, HRA and rent.
Keep rent receipts and landlord details where documentation is required.
Check whether your employer's payroll classification includes DA in salary for HRA purposes.
Compare the old and new tax regimes separately; this calculator does not choose a regime for you.

Frequently asked questions

Short, direct answers to the questions we hear most.

Guides that explain how to use this calculation in a real decision.

Taxes • 7 min read

New vs old tax regime: a decision checklist

Deductions, slabs and break-even levels explained without the jargon — then compared on your own numbers.

Read guide

Salary • 5 min read

How HRA exemption is actually calculated

The least-of-three test, metro rules, and why paying more rent does not always increase your exemption.

Read guide

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Disclaimer

CalPaisa calculators are for general information and planning only. Results are estimates based on the values you enter and standard formulas, and may differ from the figures your bank, employer, or tax authority applies. Nothing here is investment, tax, or legal advice. Please confirm important decisions with a qualified professional. Read our financial disclaimer, learn how CalPaisa works, or tell us about a calculation you think is wrong.

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