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HRA exemption calculator

Estimate HRA exemption using the three-part test (actual HRA, rent minus 10% salary, and salary percentage cap). This is typically relevant under the old tax regime.

Last updated: March 2026FY 2024-25 (AY 2025-26) tax slabs in engine

How SalaryExit calculates estimates (methodology, FY scope, and limits).

The three tests are computed from your inputs — see the accuracy card for regime and payroll caveats.

Required inputs

  • Basic salary (annual, ₹)
  • DA (annual, ₹) — if part of retirement benefits
  • HRA received (annual, ₹)
  • Rent paid (annual, ₹)
  • Metro vs non-metro (for the 50% / 40% test)

Use 0 if DA is not part of retirement benefits in your context.

City type (for 50% / 40% test)

If you’re unsure, treat “non-metro” as the conservative assumption for the % cap.

Fill all annual amounts to compute the minimum of the three tests.

Assumptions used by this estimate

  • Metro uses 50% of (Basic+DA); non-metro uses 40%.
  • Rent test uses rent − 10% of (Basic+DA).
  • Exemption is the minimum of the three Section 10(13A) tests implemented in code.

Worked example (same engine as live calculator)

Engine snapshot: Basic ₹8,00,000/year, DA ₹0/year, HRA received ₹3,60,000/year, rent ₹3,00,000/year, metro. Annual exemption (min of three tests) ₹2,20,000.

FAQ

Is this valid under the new regime?

HRA exemption is generally a feature of the old regime tax computation. Treat this as a planning reference for rent vs HRA structuring.

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