See how much of your house rent allowance is exempt from income tax and how much is taxable. The calculator applies the least-of-three rule and shows which limit decided the figure. Everything runs in your browser; nothing you type is sent anywhere.
| Actual HRA received | — |
| Rent paid − 10% of basic + DA | — |
| 50% of basic + DA | — |
| Exempt HRA | — |
| Taxable HRA | — |
House rent allowance is the part of a salary meant to cover rent. If you actually pay rent for the home you live in, part or all of that allowance can be excluded from taxable income. How much is decided by comparing three amounts and taking the smallest:
Every figure is taken for the same period. If you paid rent for only part of the year, or your salary changed mid-year, work each stretch out separately and add them up. That is why the calculator has a months field.
For HRA, salary means basic pay plus dearness allowance (where DA counts towards retirement benefits), plus any commission paid as a fixed percentage of turnover. Allowances such as HRA itself, conveyance and special allowance are left out, and so are bonuses.
The second limit subtracts 10% of salary from the rent you pay. If your rent is at or below that amount, the second limit is zero, and so is the exemption, however much HRA you receive.
The HRA exemption belongs to the old tax regime. Under the new regime, which is now the default, the allowance is fully taxable. If you receive a large HRA and pay high rent, this one deduction can decide which regime works out cheaper for you.
An employee in Mumbai earns a basic + DA of ₹50,000 a month, receives ₹20,000 a month as HRA and pays ₹22,000 a month in rent, for all 12 months of the year:
If you miss your employer's proof deadline, the exemption can still be claimed when you file your return, as long as you are on the old regime and have the documents.
The exempt part of house rent allowance is the least of three amounts: the actual HRA received; rent paid minus 10% of salary; and 50% of salary if you live in a metro city (40% elsewhere). "Salary" here means basic pay plus dearness allowance (where DA counts for retirement benefits) plus any commission fixed as a percentage of turnover. Whatever HRA is left over is taxable.
The 50% rate has traditionally applied to Delhi, Mumbai, Kolkata and Chennai; every other city uses 40%. The rule carries forward under the Income-tax Act, 2025, which replaced the 1961 Act from 1 April 2026, and the list of cities is set by the income-tax rules. There have been proposals to extend the 50% rate to cities such as Bengaluru, Hyderabad, Pune and Ahmedabad, so check the currently notified list for your city before filing.
No. The new tax regime, which is the default, does not allow the HRA exemption — the full allowance is taxable. The exemption is available only if you opt for the old regime.
Yes, provided the rent is genuinely paid (ideally by bank transfer), there is a rent agreement or receipts, and your parent declares the rent as income in their own tax return. Rent paid to a spouse is generally not accepted.
If the rent you pay exceeds ₹1,00,000 in a year, employers ask for the landlord's PAN before allowing the exemption. Below that, rent receipts or an agreement are normally enough.
Under the old regime, self-employed people and employees who receive no HRA have historically been able to claim a deduction for rent under section 80GG — the least of ₹5,000 a month, 25% of adjusted total income, or rent paid minus 10% of adjusted total income — provided they do not own a house in the same city. That is a separate calculation from this one.
Then no rent is paid and there is no exemption: the entire HRA you receive is taxable.
This calculator applies the HRA exemption rule as it stands in 2026 and is provided for general guidance. Your employer's payroll policy, mid-year salary changes and the notified list of cities can change the outcome. Confirm with a qualified tax advisor before relying on a figure.
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