The HRA Exemption Calculator works out how much of your House Rent Allowance is exempt from income tax under Section 10(13A). Enter your basic salary, the HRA you receive, the rent you pay, and whether you live in a metro city, and it shows the exempt amount, the taxable amount, and exactly which of the three legal limits applies to you.
HRA is one of the most common tax savings for salaried people who live in rented accommodation — but only part of it is usually tax-free. Knowing the exempt figure helps you plan your taxes and your rent. Note that the HRA exemption is available only under the Old tax regime, not the New regime. Everything runs in your browser.
How to calculate your HRA exemption
- Enter your monthly basic salary (including dearness allowance, if any).
- Enter the HRA you receive each month and the rent you actually pay.
- Choose whether you live in a metro city (50%) or a non-metro city (40%).
- Read your exempt HRA, your taxable HRA, and which of the three limits is the lowest.
How HRA exemption is calculated
Under Section 10(13A), the HRA exempt from tax is the lowest of three amounts. Whichever is smallest is what you can claim as exempt; the rest of your HRA is added to your taxable salary.
HRA exemption is the lowest of these three amounts.
| Limit | How it is worked out |
|---|---|
| 1. Actual HRA received | The HRA component paid in your salary. |
| 2. 50% or 40% of basic | 50% of basic + DA in a metro city; 40% in a non-metro city. |
| 3. Rent − 10% of basic | The rent you pay minus 10% of your basic + DA. |
A worked example
Suppose your basic salary is ₹30,000 a month, you receive ₹15,000 HRA, pay ₹15,000 rent, and live in Mumbai (a metro). The three limits are: actual HRA ₹15,000; 50% of basic ₹15,000; and rent minus 10% of basic ₹15,000 − ₹3,000 = ₹12,000.
The lowest is ₹12,000, so ₹12,000 a month (₹1,44,000 a year) is exempt, and the remaining ₹3,000 a month of HRA is taxable. In this case the third limit — rent minus 10% of basic — is what caps your exemption.
Rules and documents to remember
- HRA exemption applies only under the Old tax regime — the New regime does not allow it.
- Metro cities for HRA are Delhi, Mumbai, Kolkata, and Chennai; everywhere else is non-metro (40%).
- You need rent receipts, and your landlord’s PAN if your annual rent is over ₹1,00,000.
- You can claim HRA for rent paid to your parents if you genuinely pay them and they declare it as income.
- If you own the home you live in, or pay no rent, you cannot claim an HRA exemption.
Frequently Asked Questions
How much HRA is exempt from tax?
The exempt HRA is the lowest of three amounts: the actual HRA you receive, 50% of your basic (40% for non-metro cities), and the rent you pay minus 10% of your basic. The rest of your HRA is taxable.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata, and Chennai are treated as metro cities for HRA, where the limit is 50% of basic. All other cities are non-metro, where the limit is 40%.
Can I claim HRA exemption in the new tax regime?
No. The HRA exemption under Section 10(13A) is available only under the Old tax regime. If you opt for the New regime, you cannot claim it.
Can I claim HRA if I pay rent to my parents?
Yes, provided you genuinely pay rent to them and they report it as rental income. Keep proof of payment (bank transfers) and rent receipts.
What documents do I need to claim HRA?
You need rent receipts, and if your annual rent exceeds ₹1,00,000 you must also provide your landlord’s PAN. Paying rent by bank transfer rather than cash makes it easier to prove.