How to use the HRA Calculator
- 1. Enter your payType monthly basic, DA and the HRA you receive.
- 2. Add your rentEnter the monthly rent, your city type and months rented.
- 3. See the exemptionGet the exempt amount, taxable HRA and the rule that decided it.
How HRA exemption is calculated
The exempt amount is the lowest of three figures, each for the months you paid rent:
- The HRA you actually received.
- Rent paid minus 10% of basic + DA.
- 50% of basic + DA in a listed city, otherwise 40%.
Example: basic ₹50,000, HRA ₹20,000 and rent ₹18,000 a month in a 50% city for 12 months. The three figures are ₹2,40,000, ₹1,56,000 (₹2,16,000 minus ₹60,000) and ₹3,00,000. The lowest is ₹1,56,000, so that is exempt. The other ₹84,000 of HRA is taxable.
The tool shows which rule decided your result, so you can see what would change it. If rent is the limit, for instance, a higher rent would raise the exemption until another rule takes over.
Rules to check before you claim
- Old regime only. HRA exemption is not available in the new regime, where all HRA is taxed. Use the old vs new tax regime calculator to see if claiming it is worth it.
- 50% cities. Reports on the Income-tax Rules 2026 list Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad at 50%, with other cities at 40%. Verify this for your city and your year.
- Proof. Keep rent receipts and a rent agreement. If yearly rent crosses the limit set by the rules, your employer can ask for the landlord's PAN.
- Living with family. Rent paid to a parent can qualify if it is genuine and the parent reports it as income. You cannot pay rent to your spouse in a normal way to claim it.
Comparing job offers? The salary hike calculator and EPF calculator help you see the rest of your pay. This is an estimate, not tax advice.
Frequently asked questions
Can I claim HRA in the new tax regime?
No. In the new regime HRA is fully taxable. The exemption applies only if you choose the old regime.
Which salary is used for HRA?
Basic pay plus DA that counts for retirement benefits, plus any commission fixed as a percentage of turnover. Allowances such as special allowance are not included.
What if I rented for only part of the year?
Enter the number of months you paid rent, and use the same monthly figures. If your rent or pay changed mid-year, work out each period separately and add them.
Is this tax advice?
No. This is an estimate, not tax advice. Check the current rules or ask a tax professional before you file.
Is this tool free?
Yes. It is free, and we ask for your name and WhatsApp number once when you view your result. All other Uncodemy tools then open without the form.