HRA calculator for India

House rent allowance (HRA) is exempt from tax up to the least of three amounts: the HRA you receive, the rent you pay above one-tenth of your salary, and 50 percent of salary in the eight listed cities or 40 percent anywhere else. Salary here means basic pay plus dearness allowance. Enter your monthly figures below.

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Your pay and rent (per month)
Count it only if your terms of employment provide for it. Otherwise leave 0.
Enter 0 if you pay no rent or live in your own house.
Where is the rented home?The 50% group is Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru.

Enter your basic pay, HRA and rent to see how much HRA is exempt.

How this is calculated

  1. Salary = basic pay + dearness allowance (only if your terms of employment provide for it).
  2. Test 1 = the HRA you actually receive.
  3. Test 2 = rent you pay − 10 percent of salary. If this is below zero, it is zero.
  4. Test 3 = 50 percent of salary if you live in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad or Bengaluru, otherwise 40 percent of salary.
  5. Exempt HRA = the least of the three. Taxable HRA = HRA received − exempt HRA.

Example with made-up numbers: basic Rs 40,000, HRA Rs 30,000, rent Rs 30,000, in Bengaluru. Test 1 = Rs 30,000. Test 2 = Rs 30,000 − Rs 4,000 = Rs 26,000. Test 3 = 50 percent of Rs 40,000 = Rs 20,000. Exempt HRA is Rs 20,000 a month and Rs 10,000 is taxable.

Not modelled: months in the year when you paid no rent, a job or city change during the year, and whether your chosen tax regime allows the exemption. Check that against your own return.

Assumptions and sources

Last checked 30 October 2026.

  • The exempt amount is the least of the three amounts above (Income-tax Rules, 2026, Rule 279, which implements the HRA entry in Schedule III of the Income-tax Act, 2025, in force from 1 April 2026). Source: Income-tax Rules, 2026, Rule 279 (Income Tax Department).
  • The 50 percent group is Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Any other place is 40 percent. Older guides list only four cities; the 2026 Rules text lists eight. Source: Income-tax Rules, 2026, Rule 279 (Income Tax Department).
  • Salary includes dearness allowance if provided for under the terms of employment, and excludes all other allowances and perquisites. Source: Income-tax Rules, 2026, Rule 279 (Income Tax Department).
  • The test is run on the period you occupied the rented home, so the monthly and 12-month figures here assume you paid rent and received HRA for every month.
  • Whether you live in the listed city is judged by where the rented home is. Ask your employer or adviser if you are unsure.

Frequently asked questions

Which cities count for the 50 percent HRA limit?
Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru under the Income-tax Rules, 2026. Everywhere else is 40 percent.
Is HRA exempt if I pay no rent?
No. The rent test gives zero when you pay no rent, so nothing is exempt and the whole HRA is taxable.
What counts as salary for HRA?
Basic pay plus dearness allowance if your terms of employment provide for it. Other allowances and perquisites are left out.
Why is my exempt HRA zero?
The rent you pay may be 10 percent of your salary or less, so the rent test is zero.
Does the calculator store my numbers?
No. It runs in your browser, stores nothing and sends nothing.

Illustrative arithmetic. Your payslip, rent records and tax return control. This is general information, not tax advice. Rules change and your situation may differ. Consult a qualified adviser.