₹ TaxSetu 2025
Tool + Guide — HRA

HRA Calculator + Exemption Guide: Least-of-3 Formula (FY 2026-27)

Enter Basic, HRA, rent + city — get exempt HRA instantly. Formula: least of actual HRA / rent−10% salary / 50-40% salary. 8 metros at 50%. Old regime only.

HRA calculator — exempt HRA in 10 seconds

Rules behind the calculator

  • Salary = Basic + DA (12 months). HRA exemption = least of the 3 numbers above.
  • 8 metros at 50%: Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Ahmedabad — everywhere else 40%.
  • Landlord PAN mandatory if yearly rent exceeds ₹1 lakh (declare in Form 12BB).
  • Old regime only — new regime taxes full HRA. No HRA in salary? 80GG gives up to ₹5k/month instead.
Salary + HRA master → · Rent to parents? 80GG → · What survives in new regime →
Our take ✍️
For most metro renters, rent-minus-10%-of-salary is the binding leg — not the 50% cap everyone quotes. And post-Rule-279, double-check your city's 8-metro status before claiming 50%. Five minutes with actual rent receipts beats any calculator's estimate.
⚖️ Legal footing: 10(13A) + Rule 279
HRA exemption is Sec 10(13A) — least of actual HRA, rent-minus-10%-of-salary, and 50%/40% of salary. The 'which cities get 50%' list lives in the Rules (currently reported as Rule 279: 8 metros), not in the section. Lawyers read it as '10(13A) read with Rule 279' — section for the formula, Rule for the geography. Rent to parents? Same section, but keep the agreement + bank trail + their declaration.

By TaxSetu Editorial Team · Last reviewed: 7 October 2026

Based on the Income-tax Act 2025, Income Tax Rules 2026 and CBDT notifications; sections per the Income-tax Act 1961 (as amended) with 2025-Act mappings where notified · Verify on the official portal: incometax.gov.in

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Frequently Asked Questions

Least of 3: actual HRA received, rent minus 10% of salary (Basic+DA), and 50% of salary (metro) or 40% (non-metro). Use the calculator above.

Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad — 8 metros. Everywhere else gets 40%.

No — HRA is old-regime only; the new regime taxes your full HRA. What survives in new regime.

Your landlord's PAN becomes mandatory — declare it in Form 12BB. Rent proof rules.