The three-way minimum, not a vibe
HRA exemption is the smallest of three numbers. People quote “50% in a metro” as if that were the refund. It is only one cap. If you pay little rent, the rent-minus-10% leg wins and the 50% poster is theatre. If the employer barely pays HRA, the actual-received leg wins. Type all four inputs. Watch which row binds.
Salary for this page means basic plus DA. That is the usual reading of the old Rule 2A / current Rules 2026 “salary” for HRA. Commission as a percentage of turnover can also count in the statute; I will not guess it from CTC. If DA is in the HRA annexure, type it. If it is not, leave DA at 0.
FY 2026–27 metros
For decades the 50% list was four names: Mumbai, Delhi, Kolkata, Chennai. From FY 2026–27 the Income-tax Rules, 2026 add Bengaluru, Hyderabad, Pune, and Ahmedabad. I checked that list on 26 August 2026 against reporting of those rules. Gurugram, Noida, and “my office is in a metro” still sit in the 40% bucket unless the notification actually names them. FY 2025–26 returns still use the old four. Confirm on the Income Tax Department site if you are reading this after another Budget.
Worked example: metro, rent is the bind
Basic ₹50,000, DA ₹0, HRA received ₹20,000, rent ₹18,000, metro. Salary ₹50,000. Legs: actual HRA ₹20,000; rent − 10% of salary = ₹13,000; 50% of salary = ₹25,000. Exemption ₹13,000. Taxable leftover ₹7,000 a month. The 50% poster never entered the answer.
Worked example: non-metro, HRA is small
Same numbers, non-metro. Third leg becomes 40% = ₹20,000. Least of 20,000 / 13,000 / 20,000 is still ₹13,000. Flip rent to ₹8,000 and rent − 10% goes to ₹3,000 — that is now the exemption, leftover ₹17,000. Living with family at ₹0 rent zeroes the exemption. There is no “I have HRA so some of it must be exempt.”
New regime
Default new regime does not give you this exemption. Run the number anyway if you are deciding whether old regime plus real rent receipts is worth the paperwork. The salary calculator is a CTC sketch; this page is the actual least-of-three on figures you type. Printable receipts live on the rent receipt tool. Landlord PAN thresholds still belong to payroll, not to this arithmetic.
Questions
What is the least-of-three rule?
Exempt HRA is the smallest of: HRA actually received; rent paid minus 10% of salary; 50% of salary in a metro or 40% otherwise. Taxable leftover is HRA received minus that exemption.
What counts as salary here?
Basic + DA that forms part of salary for this rule. Commission as a percentage of turnover can also sit in “salary” in the statute; this box does not invent commission. Type the DA that is actually in the HRA worksheet.
Which cities are metros in FY 2026–27?
Mumbai, Delhi, Kolkata, Chennai, plus Bengaluru, Hyderabad, Pune, and Ahmedabad under the Income-tax Rules, 2026 (50% leg). Everywhere else is 40%. FY 2025–26 still used only the original four for 50%. Confirm on the Income Tax Department site if a later notification moves the list.
New regime?
HRA exemption is an old-regime feature. If you are on the default new regime, the leftover is generally the whole HRA — this calculator is then a what-if, not your ITR.
Monthly or annual?
Type monthly figures as they appear on the payslip. The strip also multiplies by 12. Mixed months (rent changed in September) belong in a spreadsheet, not one box.
Is this a filing?
No. Form 12BB / Form 124, rent receipts, and landlord PAN thresholds still live with payroll. Use the rent receipt generator for the paper, not for the exemption math.
Are my numbers uploaded?
No. Watch the compute log. Amounts stay in this tab.