ToolPetal
Test 1HRA received
Rs 20,000
HRA Exemption Calculator FY 2026-27
- Runs on your device
- Nothing uploaded
- Free, no sign-up
The “salary” used in the 10% and 50%/40% tests.
50% of basic if ticked, otherwise 40%.
Exempt HRA
-
Taxable HRA
-
| Statutory test | Amount |
|---|
Exempt HRA = minimum of three tests (defaults)
Test 2 (binds)Rent − 10% salary
Rs 13,000
Rs 13,000
Test 340%/50% salary
Rs 20,000+
Rs 20,000+
Three-way minimum rule
Under the old tax regime, exempt HRA is the minimum of three statutory tests (this page’s salary input = basic + DA):
- Actual HRA received.
- Rent paid − 10% of salary.
- 50% of salary in a metro city, or 40% otherwise.
Taxable HRA = HRA received − exempt amount. The new (default) regime does not allow HRA exemption, compare in the old vs new tax regime calculator. Not tax advice. Disclaimer.
Metro vs non-metro
For this rule, metro usually means Delhi, Mumbai, Kolkata, Chennai (50% test). Elsewhere use 40%. Toggling the checkbox only changes test 3. If test 2 (rent − 10% of salary) is already the binding minimum, metro may not change exempt HRA at all, that is correct under the statute.
Figures can be monthly or annual as long as basic, HRA, and rent use the same period. Mid-year city changes need two runs added together; the checkbox is not a pro-rata engine.
Sample numbers (page defaults)
Basic+DA Rs 50,000, HRA received Rs 20,000, rent Rs 18,000, non-metro:
| Test | Non-metro | If metro ticked |
|---|---|---|
| 1: HRA received | Rs 20,000 | Rs 20,000 |
| 2: rent − 10% of salary | Rs 13,000 | Rs 13,000 |
| 3: 40% / 50% of salary | Rs 20,000 | Rs 25,000 |
| Exempt = minimum | Rs 13,000 | Rs 13,000 (still test 2) |
| Taxable HRA | Rs 7,000 | Rs 7,000 |
Raise rent (or lower basic) until test 2 is no longer the floor, and metro can start to matter. Rent paid should be what you actually paid for the rented residence that justifies HRA.
FAQ
How is HRA exemption calculated?
Exempt HRA is the minimum of three statutory tests: (1) actual HRA received, (2) rent paid minus 10% of salary (basic + DA), and (3) 50% of salary in a metro city or 40% otherwise. Taxable HRA is HRA received minus that exemption. This HRA exemption calculator shows all three legs.
Which cities count as metro for the 50% test?
For this rule, metro usually means Delhi, Mumbai, Kolkata, and Chennai. Other cities use 40% of basic + DA. Tick the metro checkbox only if that 50% test applies to you.
Can I claim HRA under the new tax regime?
HRA exemption is an old-regime benefit. The new (default) regime does not allow it. Compare both in the old vs new tax regime calculator. This page is not tax advice.
Are my salary figures uploaded?
No. Basic, HRA, rent, and the three tests run in your browser. Nothing is sent to ToolPetal.