What this estimate uses
Annual basic salary + eligible DA, Annual HRA received, Annual rent paid, Residence.
Work & Salary calculator
HRA Exemption Calculator India: Old Tax Regime
How much HRA could be exempt?
Estimate the least-of-three HRA exemption used under the old tax regime.
Your estimate
Live result
Estimated HRA exemption
—How it works
A useful estimate, with the assumptions out in the open.
For the old tax regime, the exemption is the lowest of actual HRA, rent paid minus 10% of eligible salary, and 50% of eligible salary in Delhi, Mumbai, Kolkata or Chennai—or 40% elsewhere. The new regime generally does not allow this exemption.
This result is an educational estimate. Rates, taxes, fees, product rules, and market returns can change.
India-focused guide
How much HRA is exempt under the old tax regime?
Enter annual eligible salary, HRA received, rent paid and whether you live in Delhi, Mumbai, Kolkata or Chennai. The exemption is the lowest of actual HRA, rent minus 10% of salary, and 50% of salary in those four cities or 40% elsewhere.
Important assumption
For the old tax regime, the exemption is the lowest of actual HRA, rent paid minus 10% of eligible salary, and 50% of eligible salary in Delhi, Mumbai, Kolkata or Chennai—or 40% elsewhere. The new regime generally does not allow this exemption.
Created and maintained byAll Tool Central
Formula and content reviewed16 October 2026
See how estimates are builtCalculation methodology
Detailed guide
Understand the result before using it.
This HRA calculator applies the usual least-of-three test for a salaried person claiming house-rent-allowance exemption under the old tax regime. It also shows the part of HRA that remains taxable.
The three HRA exemption limits
The exemption is not automatically equal to rent or HRA received. It is the lowest of actual HRA received, rent paid minus 10% of eligible salary, and the city-based percentage of eligible salary.
The 50% test applies to Delhi, Mumbai, Kolkata and Chennai. The 40% test applies elsewhere. The calculator’s salary input should include basic salary and only the eligible DA or turnover-based commission relevant to the tax rule.
FormulaHRA exemption = lowest of actual HRA, rent − 10% of eligible salary, and 50% or 40% of eligible salary
Example: why the city selection can matter
Assume eligible salary of ₹6 lakh, HRA of ₹3 lakh and rent of ₹3.6 lakh for the year. The actual-HRA and rent tests are both ₹3 lakh. The city test therefore decides the exemption.
| Residence | City test | Estimated exemption | Taxable HRA |
|---|---|---|---|
| Delhi, Mumbai, Kolkata or Chennai | ₹3.00 lakh | ₹3.00 lakh | ₹0 |
| Any other city | ₹2.40 lakh | ₹2.40 lakh | ₹60,000 |
Old regime only and split-year situations
The Income Tax Department’s old-versus-new-regime guidance lists HRA exemption among the deductions or exemptions generally unavailable in the new regime. Selecting a tax regime is broader than this one exemption and should consider the complete return.
If salary, rent, HRA or residence changes during the year, calculate the relevant periods separately rather than averaging inputs that were not in force for the same months.
Documents and checks to keep
- Use rent actually paid for the relevant employment period.
- Keep rent receipts, agreement and payment evidence where applicable.
- Check employer declarations and PAN requirements for the landlord where relevant.
- Confirm eligible salary components and the chosen tax regime before filing.
Common questions
Frequently asked questions
Can I claim HRA exemption in the new tax regime?
The HRA exemption for salaried employees is generally associated with the old regime and is listed as unavailable in the new-regime comparison guidance. Check the rules for the relevant assessment year.
Which cities receive the 50% HRA salary test?
Delhi, Mumbai, Kolkata and Chennai use the 50% test. Other places use 40% for this calculation.
Is the entire rent payment exempt?
No. Rent is only one part of the least-of-three calculation, and the rent test subtracts 10% of eligible salary.
What if I move cities during the year?
Calculate each period using its actual salary, HRA, rent and residence category, then combine the period results.
Continue planning
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