HRA exemption
Understand the rent exemption you may claim.
Estimated HRA exemption
For illustration only. Read the assumptions below for the full picture.
Understand your result.
Estimate the HRA exemption under the old tax regime using eligible salary, HRA received, rent paid and the specified metro classification. Inputs should cover the same period.
The exemption is limited by the least of three amounts. Rent paid alone does not determine the amount exempt from salary tax.
A worked example.
Using this calculator’s default inputs, estimated hra exemption is ₹2,40,000. This is an illustration of the stated formula, not a forecast.
See the example inputs
| Annual basic + eligible DA | ₹6,00,000 |
|---|---|
| Annual HRA received | ₹3,00,000 |
| Annual rent actually paid | ₹3,00,000 |
| Residence location | Delhi, Mumbai, Kolkata or Chennai |
A common mistake to avoid
Treating every large Indian city as a 50% HRA metro.
Questions you might have.
Do Bengaluru, Hyderabad and Pune use 50%?
This model uses 50% only for Delhi, Mumbai, Kolkata and Chennai, and 40% for other cities under the stated rule.
Is HRA exemption available in the new regime here?
No. This HRA tool is for the old-regime exemption and does not establish your wider tax eligibility.
Prepared by INDwise · Calculation checks: 29 October 2026 · How we check the maths · Report a correction
How we calculate it
Exemption is the least of actual HRA, rent minus 10% of eligible salary (minimum zero), and 50% of eligible salary in the four specified metros or 40% elsewhere.
Assumptions & things to know
Old regime only, with genuine rent paid and eligible HRA. Inputs must cover the same period. Eligible salary includes basic, qualifying DA and eligible turnover-based commission. Not available for a self-owned residence. Bengaluru, Hyderabad and Pune use the 40% category.
Income Tax Department — HRA rulesSource references checked 29 October 2026. Rates and rules may change.
Your privacy & sharing
Your financial inputs are used only within this page. Saved calculators use this browser’s local storage. Sharing creates a link with the entered values, so anyone with that link can see those values. A downloaded summary stays on your device.