HRA Exemption Calculator
Your House Rent Allowance exemption is not simply the rent you pay — it is the least of three statutory limits under Section 10(13A) read with Rule 2A. This calculator works out all three and shows you which one is actually capping your claim, so you can see where the constraint lies.
Need the receipts too?
Once you know your exemption, you will usually need rent receipts to substantiate the claim to your employer. Our Rent Receipt Generator produces a full year of printable receipts in your browser, with nothing uploaded anywhere.
Want your salary structured better?
HRA is only one lever. How your basic, allowances and reimbursements are structured can change your take-home meaningfully — and it is far easier to fix at the start of a year than at filing time. Share your details and we'll reach out to know more.
The calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. Viewers are advised to ascertain the correct position/prevailing law before relying upon any document.
The three limits, and why the smallest one wins
Rule 2A sets out three ceilings, and your exemption is the lowest of them:
- The actual HRA you received. You can never exempt more HRA than you were paid.
- Rent paid, less 10% of salary. This is the one that surprises people — the first 10% of your salary spent on rent gets no relief at all. If your rent is below 10% of salary, your exemption is nil.
- 50% of salary if you live in a qualifying city, or 40% anywhere else.
The 50% city list widened from 1 April 2026
Historically only Delhi, Mumbai, Kolkata, Chennai carried the 50% limit. The Finance Act 2026 added Bengaluru, Hyderabad, Pune, Ahmedabad with effect from 1 April 2026, so from FY 2026-27 the qualifying list is Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
This matters if you live in one of the four newly added cities: the same salary and rent produce a smaller exemption for FY 2025-26 than for FY 2026-27, because the third limit moves from 40% to 50% of salary. Since returns for FY 2025-26 are being filed now while planning is already running on FY 2026-27, pick the year deliberately rather than assuming.
What counts as "salary" here
Only basic salary, dearness allowance that enters into pay for retirement benefits, and commission computed as a fixed percentage of turnover. Other allowances, bonuses and perquisites are excluded — which means the salary figure used in this calculation is usually well below your CTC.
Points that commonly cause trouble
- Old regime only. The exemption does not exist under the new regime, whatever your rent.
- Landlord's PAN is required once annual rent crosses ₹1,00,000. Without it, the exemption is generally disallowed at source.
- Rent to a relative is permissible but must be genuine — actually paid, and declared as income by the recipient. Rent to a spouse is a recurring point of dispute.
- You cannot claim HRA for a house you own and occupy.
- Mid-year changes in salary, rent or city require the exemption to be worked out separately for each period, not on annual totals. This calculator assumes a single stable period.