How to use this HRA calculator
- Enter your monthly basic salary, any dearness allowance and the HRA your employer pays.
- Enter the monthly rent you pay and choose whether you live in a metro or a non-metro city.
- If you rented for fewer than 12 months this year, change the number of months.
- Read the exempt and taxable HRA, and the three limits that decide it.
The three-limit rule
The exemption is the smallest of the three amounts below. The calculator draws them as bars, and the one that sets your exemption is highlighted.
| Limit | How it is worked out |
|---|---|
| HRA received | The HRA in your salary |
| Rent minus 10% of salary | Rent paid - 10% of (basic + DA) |
| Share of salary | 50% of (basic + DA) in a metro, 40% elsewhere |
Two worked examples
Basic ₹50,000, HRA ₹20,000 and rent ₹25,000 in a metro. The limits are ₹20,000 (HRA), ₹20,000 (rent minus ₹5,000) and ₹25,000 (50% of salary). The smallest is ₹20,000, so the whole HRA, ₹2,40,000 a year, is exempt.
Basic ₹30,000, HRA ₹15,000 and rent ₹12,000 in a non-metro city. The limits are ₹15,000, ₹9,000 (rent minus ₹3,000) and ₹12,000 (40% of salary). The exemption is ₹9,000 a month and the other ₹6,000 of HRA is taxable, so paying more rent would raise the exemption until it reaches the next limit.
Old regime or new regime
HRA exemption only reduces tax under the old regime, along with deductions such as Section 80C. Under the new regime, which has lower slab rates but almost no deductions, the exemption does not apply. Which is better depends on how much you can deduct, so compare both in the income tax calculator. For the effect on your monthly pay see the in-hand salary calculator.
Limits of this calculator
It uses the same rent and salary every month of the period. It does not check the paperwork your employer needs, and the metro list and the section of the tax law it sits in can change, including with the new Income-tax Act that applies from 1 April 2026. The tax saved figure applies your slab rate and 4% cess to the exempt amount, ignoring surcharge and the effect on your other deductions.