HRA Calculator
Tax-free part of your house rent allowance (old regime).
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Enter your numbers to see the result.
This HRA calculator works out how much of your house rent allowance is exempt from tax under the old regime. Enter your basic pay and DA, the HRA you receive and the rent you pay, and choose your city. It applies all three limits and shows the exempt and taxable HRA. From Tax Year 2026-27, Bengaluru, Hyderabad, Pune and Ahmedabad join the 50% metro list.
What is a HRA Calculator?
House Rent Allowance (HRA) is part of many salaries in India, paid to help employees cover rent. If you live in a rented home and pay rent, part or all of your HRA can be exempt from income tax under the old regime.
The exempt amount is the lowest of three figures: the HRA you actually receive, the rent you pay minus 10% of your basic pay, and 50% of basic pay in the listed metro cities or 40% elsewhere. Under the Income-tax Rules, 2026, the 50% list covers Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. An HRA calculator works out all three and picks the lowest.
How does the HRA Calculator work?
The calculator multiplies your monthly figures by the number of months you paid rent. It then works out the three limits and takes the smallest as the tax-free HRA. The rest of your HRA is added to your taxable salary.
Basic pay here means basic salary plus dearness allowance if it forms part of retirement benefits.
How to use the HRA Calculator step by step
- Enter your monthly basic pay plus DA.
- Enter the HRA shown on your payslip.
- Enter the rent you pay each month.
- Choose your city.
- Enter the number of months you paid rent this year.
- Read the tax-free HRA and use it in the income tax calculator.
HRA Calculator example with real numbers
You work in Bengaluru with a basic pay of ₹50,000 a month, receive ₹20,000 as HRA and pay ₹22,000 rent.
| Example input | Value |
|---|---|
| Monthly basic pay + DA | ₹50,000 |
| Monthly HRA received | ₹20,000 |
| Monthly rent paid | ₹22,000 |
| City where you rent | Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune or Ahmedabad (50%) |
| Months of rent this year | 12 months |
| Example output | Value |
|---|---|
| Tax-free HRA for 12 months | ₹2,04,000 |
| 1. Actual HRA received | ₹2,40,000 |
| 2. Rent paid minus 10% of basic | ₹2,04,000 |
| 3. 50% of basic | ₹3,00,000 |
| Limit that applies | Rent minus 10% of basic |
| Monthly tax-free HRA | ₹17,000 |
| Landlord PAN needed | Yes: yearly rent above ₹1 lakh |
The HRA calculator compares the three limits: HRA received (₹2,40,000), rent minus 10% of basic (₹2,04,000) and 50% of basic (₹3,00,000). The lowest, ₹2,04,000, is tax-free. Before Tax Year 2026-27, Bengaluru counted as a 40% city, so the new rule helps people there.
Key features of this HRA Calculator
- All three HRA limits shown
- Updated 50% list with 8 cities
- Months of rent for job changes or moves
- Landlord PAN reminder
- Exempt and taxable HRA split
Who should use the HRA Calculator?
Who is this HRA Calculator for?
- Salaried employees on the old regime who pay rent
- People moving to Bengaluru, Hyderabad, Pune or Ahmedabad
- Employees submitting investment proofs to HR
- HR and payroll staff
Practical use cases
- Working out the tax-free HRA to declare to your employer
- Seeing how much higher rent would help
- Checking the benefit of the new metro rule
- Comparing old and new regime with HRA included
Key benefits
- Accurate: applies the exact three-way test.
- Up to date: new 8-city metro list.
- Transparent: see which limit applies.
- Practical: handles part-year rent.
Tips for better results
- Keep rent receipts and a rent agreement; employers and the tax department may ask for them.
- Give your landlord’s PAN if yearly rent exceeds ₹1 lakh.
- You can pay rent to parents if they own the house and declare the rent as income; you cannot pay rent to your spouse for this purpose.
- Compare regimes; if the new regime is still cheaper, HRA does not matter.
Common mistakes to avoid
- Claiming HRA while living in your own house in the same city.
- Using CTC instead of basic plus DA.
- Choosing the 50% option for a city not on the list.
- Expecting HRA exemption under the new regime.
Limitations of this HRA Calculator
- It applies only to the old regime.
- It assumes the same pay and rent every month you enter.
- If you did not receive HRA, a separate deduction for rent (familiar as Section 80GG) may apply; it is not calculated here.
HRA Calculator vs other ways to calculate
| City type | Limit C | Cities |
|---|---|---|
| Metro (50%) | 50% of basic + DA | Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad |
| Non-metro (40%) | 40% of basic + DA | All other cities, including Noida and Gurugram |
| New regime | No HRA exemption | Any city |
If your employer does not pay HRA, ask a tax professional about the rent deduction for those without HRA. To see the full effect on your tax, enter the HRA result in the income tax calculator.
Privacy and data handling
This HRA Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
HRA Calculator FAQs
How is HRA exemption calculated?
It is the lowest of: actual HRA received, rent paid minus 10% of basic plus DA, and 50% (eight listed cities) or 40% (other cities) of basic plus DA.
Which cities get 50% HRA from 2026?
Under the Income-tax Rules, 2026, the 50% limit applies to Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad from Tax Year 2026-27.
Is HRA exempt under the new regime?
No. HRA exemption is available only under the old regime.
Can I claim HRA if I pay rent to my parents?
Yes, if they own the house, you actually pay rent and they show it as income. You cannot claim HRA for rent paid to your spouse.
Is a landlord PAN needed for HRA?
Yes, if your total yearly rent is more than ₹1 lakh.
What if I don't receive HRA?
You may be able to claim a separate rent deduction under the old regime if you meet its conditions.
Related tools
Sources and references
We checked the method and the current figures used in this HRA Calculator against these official and primary sources:
Written and reviewed by the Qorico Team
