HRA Exemption Calculator (India)
This HRA exemption calculator works out the tax-free portion of your House Rent Allowance under Section 10(13A) of the Income Tax Act — the amount that's exempt from tax under the old regime if you pay rent. Enter your basic salary, HRA received, rent paid and city type to see your exemption and exactly which of the three statutory rules determines it.
Your monthly basic pay plus dearness allowance — the figure HRA exemption rules are based on, not your full CTC.
The house rent allowance your employer pays you each month.
The actual rent you pay each month.
Metro cities get a higher exemption ceiling (50% of basic+DA) than non-metro cities (40%).
HRA exemption (tax-free)
Log in to save₹1,56,000
How to use this hra exemption calculator
- 1Basic salary + DA, monthly: your basic pay plus dearness allowance — not your full CTC.
- 2HRA received, monthly: the house rent allowance your employer actually pays you.
- 3Rent paid, monthly: your actual monthly rent.
- 4City type: metro (Delhi, Mumbai, Kolkata or Chennai) gets a higher 50% ceiling; other cities get 40%.
Understanding your results
HRA exemption is the tax-free portion of your HRA — the minimum of three amounts the Income Tax Act allows. Taxable HRA is what's left over (HRA received minus the exemption), which gets added to your taxable salary. The three rule amounts below show exactly which rule is binding for you: most people don't realize which of the three actually caps their exemption.
The formula
HRA exemption = MIN(Actual HRA received, Rent paid − 10% of basic+DA, 50%/40% of basic+DA)Section 10(13A) allows the smallest of three annual amounts as tax-free: the actual HRA you received, the rent you paid minus 10% of your basic+DA (floored at zero if rent is too low relative to your salary), and 50% of basic+DA for metro cities or 40% for non-metro cities. Whichever of the three is smallest becomes your exemption — the other two just set an unused ceiling.
A worked example
With a ₹50,000 monthly basic+DA (₹6,00,000 annual), ₹20,000 monthly HRA received (₹2,40,000 annual) and ₹18,000 monthly rent paid (₹2,16,000 annual) in a metro city: actual HRA received is ₹2,40,000, rent minus 10% of basic+DA is ₹2,16,000 − ₹60,000 = ₹1,56,000, and 50% of basic+DA is ₹3,00,000. The smallest of the three is ₹1,56,000 — that's the exemption, bound by the rent-paid rule, not the HRA-received or basic-salary rule. The remaining ₹84,000 of HRA received is taxable.
Things to know
This exemption only reduces your taxable income if you're filing under the old tax regime — the new regime doesn't allow HRA exemption at all. You'll also need documentary proof to claim it: rent receipts for the year, and your landlord's PAN if your total annual rent exceeds ₹1,00,000. Always confirm the current metro-city list and exemption rules against official CBDT guidance.
Frequently asked questions
Does this exemption apply if I'm on the new tax regime?+
No — HRA exemption is only available under the old tax regime. The new regime's lower slab rates come with the trade-off of not allowing this and most other exemptions.
What proof do I need to actually claim this exemption?+
You'll typically need rent receipts covering the claimed period, and your landlord's PAN if your total annual rent exceeds ₹1,00,000. Keep a rental agreement as well, since employers and the tax department may ask for it.
Which of the three rules usually ends up binding?+
It varies by income and city — high earners with modest rent are often capped by the rent-minus-10%-of-basic rule, while those with generous employer-paid HRA relative to a modest basic salary are often capped by the 50%/40%-of-basic rule. This calculator shows all three so you can see exactly which one applies to you.
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