HRA Exemption Calculator — FY 2025–26
Estimate HRA exemption under the Income-tax Act, 1961 for FY 2025–26 / AY 2026–27. This calculator does not cover income from 1 April 2026 under the new Act.
HRA Specifications
Include commission here only when it is based on a fixed percentage of turnover under the employment terms.
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Annual exemption: ₹0Three Clause Thresholds (Minimum is Exempt):
HRA exemption: scope and calculation
This calculator estimates the HRA exemption under section 10(13A) of the Income-tax Act, 1961 for FY 2025–26 / AY 2026–27, when the employee uses the old tax regime. It does not calculate the rules for income from 1 April 2026 under the Income-tax Act, 2025. HRA exemption is not available under the 1961 Act’s new tax regime.
The exemption is the least of: HRA received; rent paid minus 10% of the relevant salary; and 50% of that salary for Delhi, Mumbai, Kolkata or Chennai, or 40% elsewhere. For this purpose, salary includes basic pay and eligible dearness allowance, plus commission based on a fixed percentage of turnover where the employment terms provide for it.
Keep the rent agreement, receipts or payment records, and any other evidence required for the claim. An estimate does not confirm that an employee qualifies or that a particular document will be accepted.
Employer scenario view
The employer view multiplies a result based on average salary, HRA, rent and city inputs by the employee count. It is a planning illustration, not the sum of each employee’s legal exemption and not a tax-savings calculation. Calculate employees individually before payroll reporting.
Check Income Tax Department legislation and current guidanceFrequently asked questions
How is HRA exemption calculated?
For FY 2025–26 / AY 2026–27 under the old regime, it is the least of actual HRA received; rent paid minus 10% of the relevant salary; and 50% of salary for Delhi, Mumbai, Kolkata or Chennai, or 40% elsewhere. Salary generally includes basic pay and eligible DA, plus commission based on a fixed percentage of turnover where the employment terms provide for it.
Is HRA exemption available under the new tax regime?
This calculator covers the old regime under the Income-tax Act, 1961 for FY 2025–26 / AY 2026–27. The exemption is not available under that Act’s new regime. Income from 1 April 2026 is governed by the Income-tax Act, 2025 and is outside this calculator’s scope.
What proof is required?
Keep the rent agreement, receipts or payment records, and any landlord details or other evidence required for the applicable tax year. Requirements can change, so check the current Income Tax Department rules.
Is HRA part of PF wages?
This HRA calculator does not determine PF wages. Each law has its own wage definition and exclusions; do not use the HRA exemption result to decide an EPF contribution base.