HRA Calculator
Find out how much of your House Rent Allowance (HRA) is exempt from tax and how much is taxable. This HRA exemption calculator uses the current FY 2026-27 metro city rules — now covering 8 cities instead of the earlier 4 — to give you an accurate, up-to-date result.
Which of the Three Conditions Applies to You?
Your HRA exemption is always the smallest of these three amounts — here's how each one stacks up for your numbers, and which one is actually deciding your exemption.
Your Three Conditions
Actual HRA Received
₹2,40,000.00
Rent Paid − 10% of Salary
₹1,20,000.00
% of Salary (Metro/Non-Metro)
₹3,00,000.00
50% of Basic + DA
Whichever of the three amounts above is smallest becomes your exempt HRA — the rest of your HRA is added back to your taxable income. In your case, that's Rent Paid − 10% of Salary, which works out to ₹1,20,000.00.
How HRA Exemption Is Calculated
The exemption rule under Section 10(13A) hasn't changed — only the metro city list has. Here's exactly how the three conditions are worked out.
HRA Exemption Formula
Condition 1
Actual HRA received from your employer
Condition 2
Rent paid − 10% of (Basic + DA)
Condition 3
50% of (Basic + DA) if metro, else 40%
Exempt HRA = MIN(Condition 1, Condition 2, Condition 3)
Note: "Salary" here means Basic pay plus Dearness Allowance (DA), if your DA counts toward retirement benefits. Any other allowances or perks in your salary structure aren't included in this calculation. Whatever HRA isn't exempt under these three conditions is added back to your taxable salary for the year.
HRA Calculation Example
See how the three-condition rule plays out using the values you've entered.
Worked Example
Based in Mumbai (classified as a metro city under the FY 2026-27 rules), your salary for HRA purposes (Basic + DA) works out to ₹6,00,000.00 per year, and you receive ₹2,40,000.00 in HRA annually.
Comparing the three conditions — actual HRA received of ₹2,40,000.00, rent paid minus 10% of salary at ₹1,20,000.00, and 50% of salary at ₹3,00,000.00 — the smallest is your rent paid minus 10% of your salary.
That makes your exempt HRA ₹1,20,000.00, with the remaining ₹1,20,000.00 added back to your taxable salary for the year.
A few things worth knowing about HRA:
HRA exemption is available only if you choose the old tax regime — under the new regime, your entire HRA is taxable.
If your annual rent exceeds ₹1,00,000, you'll need your landlord's PAN to claim this exemption.
If you don't actually pay rent, your HRA is fully taxable — this exemption only applies to genuine rented accommodation.
The HRA Metro City List Just Grew From 4 to 8
A change under the Income-tax Rules, 2026 quietly doubled the number of cities eligible for the higher 50% HRA exemption limit — here's what it means for you.
Metro Cities for HRA Exemption (FY 2026-27)
For over two decades, only four cities qualified for the higher 50% HRA exemption limit. Under the Income-tax Rules, 2026 — which came into effect from FY 2026-27 (1 April 2026) — that list has expanded to eight cities.
Original 4 Metro Cities
- Delhi
- Mumbai
- Kolkata
- Chennai
Newly Added From FY 2026-27
- Bengaluru
- Hyderabad
- Pune
- Ahmedabad
Every other city in India — including Gurugram, Noida, Jaipur, Kochi, Chandigarh, and Surat — remains classified as non-metro, capped at the 40% exemption limit.
One important transition detail: if you're filing your return for FY 2025-26 (due by July 31, 2026), the older 4-city rule still applies — Bengaluru, Hyderabad, Pune, and Ahmedabad were non-metro for that year. The 8-city rule only kicks in for income earned from 1 April 2026 onwards, i.e. FY 2026-27.
Frequently Asked Questions
Find answers to the most common questions about HRA exemption, the new metro city rules, and how the calculator works.
Disclaimer
Results are estimates for informational purposes only and may differ from actual values. Do not make financial, investment, tax, or legal decisions based solely on these results. Verify important calculations with official sources or a qualified professional. CalcMint is not liable for any loss or damage resulting from the use of this calculator.
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