FY 2026-27 · AY 2027-28

HRA exemption calculator

You pay rent. Your payslip has an HRA line. The overlap that's tax-free is the least of three numbers — most people guess it, this page computes it. Enter monthly amounts.

Basic + DA (per month)

“Salary” for HRA = Basic + Dearness Allowance (if it counts toward retirement benefits) + commission as a % of turnover. Other allowances are excluded.

HRA received (per month)

Rent paid (per month)

Is the rented home in a metro city?

Metro (50%) Non-metro (40%)

Which cities count as “metro”? Settled metros (50%): Delhi, Mumbai, Kolkata, Chennai. Everywhere else has been 40% (Gurugram/Gurgaon included). For FY 2026-27, reports say the 50% list was widened to also cover Bengaluru, Hyderabad, Pune and Ahmedabad under the new Income-tax Rules, 2026 — but we couldn’t confirm this against the official gazette. If you live in one of these four, verify with the notified rule or a CA before choosing 50%.

Annual HRA exemption (tax-free)

—

The least of these (monthly)	Amount
1. Actual HRA received	—
2. 50% of salary	—
3. Rent − 10% of salary	—
Exempt (monthly)	—

Show the math

Annual figures = monthly × 12. If your salary, rent or city changed during the year, compute each period separately and add the exempt amounts — a single annual calculation can be wrong.

How HRA exemption works

Under Section 10(13A), the tax-free part of your HRA is the least of:

the actual HRA received;
50% of salary (metro) or 40% (non-metro);
rent paid minus 10% of salary.

Here “salary” means Basic + eligible DA + commission as a fixed % of turnover — not your full CTC. The remaining HRA (received minus exempt) is added to taxable salary.

Key conditions

Old regime only. HRA exemption is not available under the new (default) regime — there, the entire HRA is taxable.
You must actually pay rent and not own the home you live in.
Landlord PAN is required if annual rent exceeds ₹1,00,000.
Period-wise: if inputs change mid-year, split into periods and add up — different limbs can bind in different months.

For information only — not tax advice. The “metro” city list for the 50% slab is subject to the notified Income-tax Rules; confirm your city’s treatment before relying on it. Consult a qualified professional for your situation.