HRA Calculator FY 2026-27
Calculate House Rent Allowance exemption, taxable HRA and estimated old-regime tax saving. Add separate periods when salary, rent or city changes.
Last Updated: July 23, 2026Use this HRA exemption calculator for Section 10(13A) and Rule 2A. It compares actual HRA, rent above 10% of eligible salary and the 50% or 40% salary limit for each rental period, then identifies the lowest amount.
Calculate HRA Exemption and Tax Saving
Enter monthly figures for up to three periods. Use a new period when your salary, HRA, rent or rented-home city changes.
Period 1 Default example
Period 2 Optional
Period 3 Optional
Your HRA Result
| Period | Actual HRA | Rent less 10% salary | 40% or 50% salary | Exemption | Limiting test |
|---|---|---|---|---|---|
| Total | ₹0 | ₹0 | ₹0 | ₹0 | 0 months |
No HRA in salary? Check Section 80GG
This separate old-regime estimate applies only when you do not receive HRA and meet every Section 80GG condition. You cannot claim both for the same period.
How to Use the HRA Calculator
- Enter the number of months covered by the first salary and rent arrangement.
- Select the location of the rented home, not your employer's office. Only Delhi, Mumbai, Kolkata and Chennai use the 50% test.
- Enter monthly basic salary, eligible DA, turnover-based commission, HRA received and actual rent paid.
- Add another period when any input changes. Total months across all periods must not exceed 12.
- Select your estimated marginal tax rate for an approximate tax-saving view.
- Choose Calculate HRA. Review all three limits, the limiting test, taxable HRA and documentation alerts.
Match salary, HRA and rent to the same period. Do not mix annual rent with monthly salary. The tool annualises each period only through the entered month count.
HRA Exemption Formula Under Section 10(13A)
For each period, the exempt HRA is the lowest non-negative amount from these three tests:
- Actual HRA: The House Rent Allowance received from your employer.
- Rent test: Actual rent paid minus 10% of salary used for HRA purposes.
- Location test: 50% of salary when the rented home is in Delhi, Mumbai, Kolkata or Chennai. Every other location uses 40%.
If rent paid minus 10% of salary is zero or negative, the exemption for that period becomes zero. Receiving HRA alone does not produce an exemption.
What Salary Counts for HRA?
Salary for this formula is narrower than gross salary or CTC. It generally includes basic salary, dearness allowance only when it forms part of retirement benefits, and commission calculated as a fixed percentage of turnover achieved by the employee.
Usually included
- Basic salary for the relevant period
- DA forming part of retirement benefits
- Turnover-based commission where applicable
Usually excluded
- HRA itself
- Bonus and fixed commission unrelated to turnover
- Employer PF, gratuity and other CTC benefits
- Special allowance and reimbursements
Use your employment terms and Form 16 details. If DA or commission treatment is unclear, confirm it with payroll or a tax professional before filing.
Worked Example: Delhi Rent for 12 Months
Assume monthly basic salary is ₹50,000, HRA received is ₹20,000 and rent paid is ₹18,000. The rented home is in Delhi for all 12 months.
| Test | Annual calculation | Amount |
|---|---|---|
| Actual HRA | ₹20,000 × 12 | ₹2,40,000 |
| Rent less 10% salary | ₹2,16,000 - 10% of ₹6,00,000 | ₹1,56,000 |
| 50% of metro salary | 50% of ₹6,00,000 | ₹3,00,000 |
The lowest value is ₹1,56,000. Estimated exempt HRA is ₹1,56,000 and taxable HRA is ₹84,000. At a 20% marginal rate plus 4% cess, the approximate tax saving is ₹32,448. Rebate, surcharge, special-rate income and slab transitions can change the actual saving.
Metro and Non-Metro HRA Rules
| Rented-home location | Salary test | Calculator choice |
|---|---|---|
| Delhi, Mumbai, Kolkata or Chennai | 50% of eligible salary | Specified metro |
| Bengaluru, Hyderabad, Pune, Ahmedabad and every other city or town | 40% of eligible salary | Other city or town |
A city's population, cost of living or common metro label does not change this HRA test. Select the city where the rented accommodation is located. If you move between locations, split the year into separate periods.
Old Regime vs New Regime Treatment
HRA exemption is available under the old tax regime when Section 10(13A), Rule 2A and evidence conditions are met. The AY 2026-27 filing validations require the Section 10(13A) exempt allowance to be zero under the new regime.
This does not mean the old regime always gives lower total tax. The new regime uses different slabs, a ₹75,000 salary standard deduction and a larger Section 87A rebate for eligible resident individuals. The old regime retains HRA and many common deductions. Use the calculated exemption in an old vs new tax regime comparison with your complete income and deductions.
The calculator's tax-saving card multiplies exempt HRA by your selected marginal rate and optionally adds 4% cess. It is a quick sensitivity estimate, not a complete income-tax computation.
When Salary, Rent or City Changes
Official return schedules ask for period-relevant salary, HRA, rent and place details. A single annual average can produce the wrong answer when values change.
Use separate periods when you
- receive a salary revision or promotion;
- start or stop receiving HRA;
- move to a new rented house;
- change between a specified metro and another city;
- pay different rent during the year; or
- join or leave employment partway through the year.
For example, use Period 1 for six months in Delhi and Period 2 for six months in Bengaluru. The calculator applies 50% to the Delhi salary and 40% to the Bengaluru salary before adding both exemptions.
Rent Proof, Landlord PAN and TDS Alerts
Keep records that show you paid rent for the home you occupied. Employer payroll proof and return-filing evidence are related but not identical processes.
- Rent agreement, where applicable
- Monthly or periodic rent receipts
- Bank transfer, UPI or other payment records
- Landlord's name and address
- Landlord PAN, or the required declaration when PAN is unavailable
- Form 12BB and employer declarations
- Payslips and Form 16 showing HRA
Income Tax Department salary guidance states that when annual rent exceeds ₹1,00,000, the employee must report the landlord's PAN to the employer, or provide the prescribed declaration if the landlord has no PAN.
A separate tenant TDS rule can apply when rent paid by an individual or HUF exceeds ₹50,000 for a month or part of a month. Section 194-IB compliance is separate from the HRA exemption formula. The calculator flags a period when its monthly rent crosses this threshold.
Section 80GG When You Do Not Receive HRA
Section 80GG is a separate old-regime deduction for eligible rent payers who do not receive HRA. Form 10BA and ownership conditions apply. The deduction is the lowest of:
- rent paid minus 10% of adjusted total income;
- 25% of adjusted total income; or
- ₹5,000 per eligible month, up to ₹60,000 for 12 months.
You cannot claim HRA exemption and Section 80GG for the same period. The adjusted-total-income definition also requires specific exclusions and adjustments. Use the 80GG result as a planning estimate and verify Form 10BA eligibility before claiming it.
Common HRA Calculation Mistakes
- Entering CTC as salary: CTC includes items that do not belong in the HRA formula.
- Using 50% for every major city: Only the four specified cities qualify.
- Claiming the full rent: Exemption is the lowest of three limits, not rent paid.
- Ignoring period changes: Salary, rent and city changes should be calculated separately.
- Claiming under the new regime: Section 10(13A) exemption is not available there.
- Missing evidence: Actual rent payment and occupancy matter.
- Double claiming: Do not claim HRA and Section 80GG for the same period.
- Confusing office and home location: The rented home's location controls 50% or 40%.
Related Tax and Salary Calculators
Use these tools to complete your salary and tax planning.
Frequently Asked Questions
How is HRA exemption calculated?
For each eligible period, take the lowest of actual HRA received, rent paid minus 10% of eligible salary, and 50% of salary for Delhi, Mumbai, Kolkata or Chennai or 40% elsewhere.
Is HRA exemption available in the new tax regime?
No. The Section 10(13A) HRA exemption is an old-regime benefit. Enter the exemption only when comparing or filing under the old regime and all eligibility conditions are met.
Which cities qualify for the 50% HRA limit?
Delhi, Mumbai, Kolkata and Chennai qualify for the 50% salary test. All other Indian cities and towns, including Bengaluru, Hyderabad and Pune, use 40%.
What salary should I enter in the HRA calculator?
Enter basic salary, eligible DA that forms part of retirement benefits and turnover-based commission where applicable. Do not use gross salary or CTC.
Can I claim HRA if I live with my parents?
A claim may be considered when you genuinely pay rent for the home you occupy and maintain evidence. The arrangement should be real, documented and reflected correctly by the recipient. Family ownership alone does not prove payment.
Can I claim HRA and home-loan interest together?
Both benefits can apply under the old regime when their separate conditions are met. Residence, property use, loan purpose, rent payment and evidence determine eligibility.
When is landlord PAN required for HRA?
Income Tax Department salary guidance requires the employee to report landlord PAN to the employer when annual rent exceeds ₹1,00,000. A declaration is used where the landlord has no PAN.
What happens when rent is less than 10% of salary?
The rent-minus-10%-of-salary test becomes zero or negative, so the estimated HRA exemption for that period is zero. The HRA received remains taxable.
Can I claim Section 80GG if I receive HRA?
You cannot claim Section 80GG for the same period in which HRA exemption is claimed. Section 80GG has separate no-HRA, ownership, adjusted-income and Form 10BA conditions.
Official References
Financial and tax disclaimer: This calculator provides an estimate for common individual situations. It does not verify employment terms, rent evidence, ownership conditions, tax-regime election or return disclosures. Check current official guidance and obtain professional advice for complex or disputed claims.