HRA Exemption Calculator – Calculate Taxable HRA Under Income-tax Act, 2025
Calculate your eligible HRA exemption and taxable HRA using the three-limit method and applicable 50%/40% location rules.
How is HRA exemption calculated under Income Tax Act 2025?
HRA exemption is the lowest of the following three amounts:
- Actual HRA received
- Rent paid − 10% of relevant salary
- 50% of relevant salary for specified locations or 40% for any other place
For Tax Year 2026-27 onwards: the 50% location category includes Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru.
HRA Exemption & Taxable HRA Calculator
Calculate your eligible HRA exemption and taxable HRA with a clear three-limit comparison. Enter monthly or annual figures and get an instant calculation.
Enter salary, HRA & rent details
Any other place: 40% of salary for the selected period.
The eligible exemption is the lowest of the three applicable limits shown above. The balance of HRA, if any, is treated as taxable HRA.
This calculator provides an indicative estimate based on the information entered. Verify the applicable provisions and your payroll calculation before filing or reporting tax.
HRA Exemption Under the Income-tax Act, 2025
For Tax Year 2026-27 onwards, HRA exemption is determined under the provisions of Income-tax Act, 2025 , read with the applicable provisions of Income-tax Rules, 2026 .
The exemption is available by applying the prescribed limits to the HRA received, rent paid, relevant salary and residential location for the relevant period. This calculator applies those rules to estimate your eligible HRA exemption and the HRA that remains taxable.
Tax Year 2026-27 onwards follows the Income-tax Act, 2025 framework. Earlier tax years may continue to be governed by the Income-tax Act, 1961 and the rules applicable to those years.
HRA Exemption: What the Calculator Considers
The calculator determines your eligible HRA exemption based on the salary, HRA received, rent paid and location of the residential accommodation entered for the relevant period.
Relevant Salary
Enter the salary amount applicable for the period for which the HRA exemption is being calculated.
HRA Received
Enter the actual HRA received for the selected period. This amount is considered as one of the limits for determining the exemption.
Rent Paid
Enter the actual rent paid for the residential accommodation during the relevant period.
Residential Location
Select the location of the residential accommodation to apply the applicable 50% or 40% salary limit.
HRA Salary and Location Rules
The HRA calculation depends on the relevant salary and the location of the residential accommodation. These details determine which limits apply to your exemption.
Relevant Salary
For this calculation, salary includes basic salary and dearness allowance where the terms of employment provide for it. Other allowances and perquisites are not included.
Residential Location
The percentage limit depends on the location of the residential accommodation occupied during the relevant period.
50% Location Category
The following specified cities qualify for the 50% salary limit:
HRA Exemption Calculation Example
See how the three limits work together with a simple monthly HRA calculation.
Monthly HRA Calculation
Employee living in an eligible 40% location
How to Use the Online HRA Exemption Calculator
Enter the details for the same period, select your residential location, and the calculator will show your eligible HRA exemption and taxable HRA.
Select the Period
Choose Monthly or Annual and enter all figures for the selected period.
Enter Salary & HRA
Enter your relevant salary and the actual HRA received for the selected period.
Enter Rent & Location
Enter the rent actually paid and select the location of your residential accommodation.
View Your Result
Click Calculate HRA Exemption to see the exemption, taxable HRA and calculation breakdown.