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FINANCE CALCULATOR

HRA Exemption Calculator

Calculate the exempt and taxable portions of HRA for one consistent period, using the selected income year and rented-home location.

Calculator

INR
Enter the qualifying salary for the same occupied period as rent and HRA; check applicable salary components.
INR
INR
YOUR RESULTS
HRA exempt for this period300,000.00 INR
HRA remaining taxable
0.00 INR
Rent less 10% of salary
300,000.00 INR
Location-based salary limit
300,000.00 INR
Applicable location percentage
50 %

Use separate calculations for periods with a change in salary, rent, HRA, or location.

HRA split

  • HRA exempt for this period300,000.00 INR
  • HRA remaining taxable0.00 INR

Exemption reduces taxable salary; it is not the amount of tax saved.

Understanding your result

The exemption is the smallest applicable limit under the old regime. Taxable HRA is the allowance received minus that exemption. The location percentage is shown even when the new-regime selection makes the exemption zero.

For a separate estimate based on qualifying wages and service, use the Gratuity Calculator .

The formula

Old-regime exemption = max(0, min(actual HRA, rent − 10% of qualifying salary, location percentage × qualifying salary)). Taxable HRA = actual HRA − exemption.

The three inputs must cover the same occupied period. New-regime exemption is zero. This result concerns HRA only, not total income tax or the most suitable regime.

Worked example

For tax year 2026–27 in Bengaluru, qualifying salary of ₹600,000, HRA of ₹300,000, and rent of ₹360,000 produce three limits of ₹300,000, ₹300,000, and ₹300,000. The exemption is ₹300,000. Under FY 2025–26 rules the location limit is ₹240,000, leaving ₹60,000 taxable.

How to use this calculator

  1. Choose the income-period rules and your tax regime.
  2. Select the location of the rented accommodation.
  3. Enter qualifying salary, HRA, and actual rent for the same period.
  4. Calculate changed periods separately when your circumstances vary during the year.

The expanded 2026 city list

Rule 279 of the Income-tax Rules, 2026 uses 50% for Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, and Bengaluru. Other places use 40%. The older FY 2025–26 option uses the earlier four-city list. Choose the period in which income is earned, rather than selecting 2026–27 only because a return is being filed during that year.

Prepare consistent figures

A month-by-month worksheet is useful when a move or salary revision changes the inputs. For example, calculate the months before a move using that rented location and then calculate the later months separately. Use a payroll-confirmed qualifying salary definition, retain rent records, and reconcile the resulting exemption with the relevant return instructions. Entering annual rent alongside one month of salary produces a misleading comparison.

Assumptions & limitations

What this calculation assumes

  • The entered rent was actually paid for occupied residential accommodation, and the selected regime permits the claimed treatment.

What to keep in mind

  • No documentation validation, salary-component classification, landlord compliance checks, or complete tax return calculation.
  • Separate rent deductions for someone who receives no HRA are not computed here.

Common questions

Is the exemption the same as tax savings?

No. It is the amount removed from taxable HRA. The effect on tax depends on total taxable income and the applicable tax rules.

What if rent is less than 10% of qualifying salary?

The rent-based limit is zero, so the old-regime exemption is also zero. The calculator never produces a negative exemption.

Sources & further reading