HRA Exemption Calculator
Work out the exempt portion of your house rent allowance under the Rule 2A least-of-three test, with all three statutory limits shown.
HRA Exempt
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HRA Taxable
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How the HRA exemption works
Rule 2A does not exempt your whole house rent allowance. It exempts whichever of three amounts is smallest, so the binding limit is often not the one people expect — a low rent relative to salary usually makes the rent-minus-10% limit decide the answer.
The three limits
- The HRA actually received in the year.
- Rent paid minus 10% of salary plus qualifying DA.
- 50% of salary plus qualifying DA in a metro city, 40% elsewhere.
The calculator shows all three so you can see which limit is doing the work. Only Delhi, Mumbai, Kolkata and Chennai count as metro cities.
Old regime only
This exemption exists in the old regime. Choosing the new regime forgoes it, so compare the two before assuming this figure applies to you.
Rule contract
- Method version
ty2026-27-v1- Scope
- Rule 2A least-of-three illustration for the current tax year; old regime only.
- Effective from
- 2026-04-01
- Rule as of / review due
- 2026-08-25 / 2027-03-31
- Rule verification state
- verified
- Rounding
- No intermediate rounding; display rupees rounded only at the page boundary.
Formula: least of actual HRA, rent less 10% of salary plus qualifying DA, and 40%/50% of salary plus qualifying DA.
Excluded: new-regime claim; rent-free accommodation; self-employed people; whether salary/DA qualifies; landlord/PAN/document checks
Official sources checked: ITR-2 validation rules (Rule 2A HRA limits); Objective and scope of the Income-tax Act, 2025 (FAQ).
Review state: The Rule 2A least-of-three test — actual HRA received, rent paid less 10% of salary plus qualifying DA, and 50% (metro) or 40% (non-metro) of salary plus qualifying DA — is unchanged, and the Income-tax Act, 2025 restructure did not alter it. The exemption remains an old-regime claim only, which the route states.
Review kind: agent-source-verification on 2026-08-25. No qualified professional sign-off is recorded; this is an educational illustration, not tax advice.
Frequently Asked Questions
How is the HRA exemption worked out?
Rule 2A exempts the least of three amounts: the HRA actually received, the rent paid minus 10% of salary plus qualifying DA, and 50% of salary plus qualifying DA in a metro city or 40% elsewhere. The calculator shows all three limits so you can see which one binds.
Does this page decide whether I can claim HRA?
No. Eligibility depends on how your salary is structured, the rent you actually pay, the regime you select, and your supporting documents. The calculator applies the arithmetic of Rule 2A to the figures you enter; it does not verify that you qualify.
Can I claim HRA under the new regime?
No. The HRA exemption is an old-regime claim. If you opt for the new regime, this exemption is not available, and the figures on this page do not apply to your calculation.
Which cities count as metro?
For this exemption, only Delhi, Mumbai, Kolkata and Chennai are metro cities, and the 50% limit applies there. Every other city uses the 40% limit, regardless of its size or cost of living.
What counts as salary for this calculation?
Basic salary plus dearness allowance where the DA forms part of retirement benefits, plus any commission fixed as a percentage of turnover. Other allowances are excluded. Check your salary structure before relying on a figure.
Which official source is this based on?
CBDT's Rule 2A limits, cross-checked against the Income Tax Department's guidance. The Income-tax Act, 2025 restructured the statute from tax year 2026-27 but did not change the least-of-three test.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.