HRA

HRA exemption calculator

How much of your house rent allowance is exempt from tax under the old regime, and how much is taxed.

Your salary and rent

Only DA that counts for retirement benefits, plus any commission fixed as a percentage of turnover.
Above ₹1,00,000 a year, your employer needs the landlord's PAN.

Where you live

Metro means Delhi, Mumbai, Kolkata or Chennai: 50% of salary. Everywhere else: 40%.

The exemption is the least of these, a month:

  1. Actual HRA received₹0
  2. Rent paid minus 10% of salary₹0
  3. 50% of salary (metro)₹0
Exempt HRA
₹0
Taxable HRA
₹0
HRA exemption is available only under the old regime. Under the new regime the whole HRA is taxable.

How it is worked out

The rule. Under section 10(13A) and rule 2A, the exempt part of HRA is the least of: the HRA actually received; rent paid minus 10% of salary; and 50% of salary in Delhi, Mumbai, Kolkata, Chennai, or 40% anywhere else. The rest of the HRA is taxed as salary.

Salary here means basic pay, dearness allowance that counts for retirement benefits, and commission fixed as a percentage of turnover — for the period you lived in the rented house.

Old regime only. The exemption is not available under the new regime (section 115BAC). If you pay rent above ₹1,00,000 a year, give your employer the landlord's PAN. No HRA from your employer? Section 80GG may allow a smaller deduction instead.

From tax year 2026-27 the Income-tax Act, 2025 and its rules apply: check the list of cities that get the higher percentage under the new rules.