HRA Calculator · May 2026

Save More on Rent: How to Use Our HRA Exemption Calculator for FY 2025-26

Maximize HRA exemptions with our HRA Calculator. Designed for Indian salaried employees, available under the Old Tax Regime — can save ₹50K to ₹2L annually.

How It Works

Enter basic salary, DA, HRA received, rent paid, city type. The calculator picks the minimum of three formulas. Example: ₹50K basic, ₹20K HRA, ₹25K rent in a metro → ₹20K/month exemption (₹2.4L/year).

Tips

Risks: HRA is unavailable in the New Tax Regime — compare via the Income Tax Calculator. Calculate HRA →

Frequently Asked Questions

How is the HRA exemption actually calculated?
It is the minimum of three amounts: the HRA you actually receive, rent paid minus 10% of salary, and 50% of basic salary in a metro city or 40% elsewhere. Because it is the lowest of the three that applies, raising just one input often changes nothing.
Which cities count as metros for HRA?
Delhi, Mumbai, Kolkata and Chennai qualify for the 50% rate. Every other city, including Bengaluru, Hyderabad and Pune, falls under the 40% limit — a difference that can be worth tens of thousands of rupees a year on the same rent.
Can I claim HRA under the New tax regime?
No. The HRA exemption is available only under the Old Regime. If you pay significant rent, that exemption on its own can be the reason the Old Regime works out cheaper for you overall.
What documents do I need?
Rent receipts for the period claimed, and your landlord's PAN if annual rent exceeds ₹1 lakh. Employers routinely reject HRA claims at the payroll stage when the landlord PAN is missing, so collect it before the investment-proof deadline rather than after.
Can I increase my HRA to save more tax?
Sometimes. If your employer allows CTC restructuring, shifting more of the package into HRA can raise the exemption — but only up to the three-part limit above. Beyond that point extra HRA is simply taxable salary, so the gain is capped by your actual rent and basic pay.

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