Ambiakshi Tools
All Salary & Tax Tools
Ambiakshi ToolsRuns 100% on this device🇮🇳 India-specificEmployeesTaxSavingRentReceipts

Calculate your HRA tax exemption

Metro vs non-metro HRA exemption from basic, rent, and actual HRA.

Runs 100% in your browser. Nothing you enter or upload ever leaves this device. How this works →

Statutory Basis & Verification Status: Some recent coverage suggests an expanded 8-city metro list (adding Bengaluru, Pune, Hyderabad, Ahmedabad) may apply from FY 2026-27 under upcoming Income-tax Rules changes — this is not yet officially confirmed against the Income-tax Rules, 2026 or Income-tax Act, 2025 text. The verified 4-city list (Delhi, Mumbai, Kolkata, Chennai) remains the confirmed basis for this calculation by default.
Exempt HRA
₹2,28,000
₹19,000/mo tax-free
Taxable HRA
₹60,000
₹5,000/mo added to income
City Classification: Metro vs. Non-Metro
Under confirmed Section 10(13A) Rule 2A law, Delhi, Mumbai, Kolkata, and Chennai enjoy a 50% basic salary HRA limit; all other cities (including Bengaluru, Hyderabad, and Pune) are capped at 40%. The actual exemption is always the lowest of the three statutory tests.
Non-Metro City40% Basic Cap
₹2,28,000 / yr
Exempt HRA:₹2,28,000.00
Taxable HRA:₹60,000.00
40% Cap:₹2,88,000.00
Metro City50% Basic Cap
₹2,28,000 / yr
Exempt HRA:₹2,28,000.00
Taxable HRA:₹60,000.00
50% Cap:₹3,60,000.00
Both Metro and Non-Metro yield the identical exemption (₹2,28,000) because your exemption is currently constrained by Rent − 10% Basic rather than the city cap.
3-Rule Statutory Breakdown (Section 10(13A), Rule 2A (4 Confirmed Metros))

Under Indian Income Tax Law, your tax-exempt HRA is strictly the MINIMUM of the three amounts below. The lowest figure applies automatically:

1. Actual HRA
From Salary Slip
₹2,88,000.00
Total annual house rent allowance paid by employer.
2. Rent Paid − 10% BasicBinding (Lowest)
Net Out-of-Pocket
₹2,28,000.00
Actual rent paid less 10% of annual basic salary (₹72,000).
3. 50% of Basic
4-City Metro Limit (Confirmed)
₹3,60,000.00
50% statutory ceiling based on city of residence.

Tax rules as of FY 2026-27 (Union Budget 2026 (New Income Tax Act 2025)), verified February 2026.

Illustrative estimate only, not tax advice. Verify against the current Income Tax Act and your employer's payroll before relying on this for filing or financial decisions.

You might also need:Calculate your in-hand salaryPlan your SIP investment

Statutory estimate — not a CA opinion

100% in-browser

Figures use the FY 2026-27 Union Budget slabs, Section 87A rebate, EPF at 12% of basic, and state professional tax. They are educational estimates, not personal tax advice. Confirm with a Chartered Accountant and Form 16 before filing.

Standard: Income-tax Act 1961, PF Act 1952, Payment of Gratuity Act 1972. Includes high-earner surcharges (10% to 25%) with marginal relief, statutory deduction caps, and state PT schedules.

Frequently asked

Direct answers for search, answer engines, and generative crawlers.

Yes. Calculate your HRA tax exemption runs in your browser at no charge. Nothing is uploaded.

Feedback, bugs & custom requests

Found a bug, a math anomaly, or a missing feature on Calculate your HRA tax exemption? Send it to engineering — reports land in our Discord channel. Optional email if you want a follow-up.

Related tools

Salary & Tax
Calculate your in-hand salary

CTC to in-hand

Salary & Tax
Calculate your gratuity

Act, 1972

Salary & Tax
India GST 2.0 Calculator

GST 2.0 slabs & split

Canonical: /finance/hra-calculator. Estimates and conversions are educational. See the full disclaimer.