Estimate the House Rent Allowance exemption available under Section 10(13A) and Rule 2A. The exemption is the lowest of three statutory amounts and is available only when the old tax regime and other eligibility conditions apply.
What this HRA calculator shows
- Estimated exempt HRA.
- HRA remaining taxable.
- The 40% or 50% salary limb.
- The rent-paid-minus-10%-of-salary limb.
HRA exemption formula
The exempt amount is the least of:
- Actual HRA received.
- 50% of eligible salary when the rented house is in Mumbai, Kolkata, Delhi, or Chennai, or 40% in any other city.
- Rent actually paid minus 10% of eligible salary.
For this rule, salary means basic pay plus dearness allowance to the extent it forms part of retirement benefits, plus turnover-based commission. It is not automatically the gross salary shown on a payslip.
For example, eligible salary of Rs. 4,80,000, HRA of Rs. 1,80,000, and rent of Rs. 2,16,000 in a non-metro city produce three limbs of Rs. 1,80,000, Rs. 1,92,000, and Rs. 1,68,000. The estimated exemption is therefore Rs. 1,68,000.
The formula and four-city metro list follow the Income Tax Department employee-benefits table, checked on 24 July 2026.
What the estimate does not decide
The calculator does not confirm that rent was genuinely paid, that HRA was received for the same period, that the landlord relationship and evidence are acceptable, or that the old regime was validly selected. It also does not split multiple employers, cities, salaries, or rental periods. Calculate separate periods when those facts change.
If annual rent exceeds the reporting threshold, landlord PAN and employer-proof requirements may apply. Keep rent receipts, the rental agreement, payment evidence, and payroll records.
Common questions
Is HRA exemption available under the new tax regime?
No. Section 10(13A) HRA exemption is not available under the new regime. Compare the complete regime outcome with the income tax calculator.
Is Bengaluru treated as a metro for HRA?
No. The Rule 2A 50% list contains Mumbai, Kolkata, Delhi, and Chennai. Other cities use the 40% salary limb.
What happens when rent is less than 10% of salary?
The third limb becomes zero, so the HRA exemption is zero under this formula.
More calculators
Use the income tax calculator to compare regimes, the salary budget calculator for monthly rent affordability, or the gratuity calculator for a separate salary-linked estimate.
