HRA Exemption Calculator
100% Private — Runs in Your BrowserFind out exactly how much of your House Rent Allowance is exempt from income tax under Section 10(13A), and how much is taxable, in seconds.
How to use this calculator
- Enter your annual basic salary + DA — found on your salary slip or Form 16.
- Enter the HRA you receive per year from your employer.
- Enter your total annual rent paid.
- Choose metro or non-metro based on where you live.
- Click Calculate HRA to see your exempt and taxable HRA.
How HRA exemption works
House Rent Allowance is a salary component paid to employees to cover rented accommodation. Under Section 10(13A) of the Income Tax Act, part of your HRA is exempt from tax. The exempt amount is the minimum of these three figures: the actual HRA received, 50% of (basic+DA) for metro cities (40% for non-metro), and rent paid minus 10% of (basic+DA). Whatever is left after subtracting the exempt portion from your HRA is added to your taxable income.
Worked example
Consider someone in Mumbai (metro) with basic+DA of ₹6,00,000 per year, HRA of ₹2,40,000, paying rent of ₹2,16,000. The three figures are: (1) actual HRA = ₹2,40,000; (2) 50% of basic = ₹3,00,000; (3) rent − 10% of basic = ₹2,16,000 − ₹60,000 = ₹1,56,000. The lowest is ₹1,56,000, so that much HRA is tax-exempt and the remaining ₹84,000 is taxable. For someone in the 30% bracket, this exemption saves about ₹46,800 in tax per year.
Metro vs non-metro
For HRA purposes, only four cities count as "metro": Delhi, Mumbai, Kolkata, and Chennai. Residents of these cities use the 50% rate, which usually produces a larger exemption. Everyone else — including major IT hubs like Bangalore, Hyderabad, and Pune — uses the 40% rate. This is a frequent source of confusion; despite their size, Bangalore and Hyderabad are non-metro for HRA.
Old regime vs new regime
HRA exemption is only available under the old tax regime. Since FY 2023-24, the new regime (with lower slab rates but no major exemptions) is the default. If you have significant HRA and pay substantial rent, the HRA exemption can make the old regime more beneficial — run both scenarios before choosing your regime each year. Tenants living with parents can even pay rent to their parents and claim HRA, provided the arrangement is genuine and documented.
Documents you need
To claim HRA exemption you must keep rent receipts (monthly or quarterly), and if your annual rent exceeds ₹1,00,000 you must report your landlord's PAN to your employer. A rent agreement strengthens your claim. Salaried employees usually submit these to their employer for inclusion in Form 16; if you missed the employer deadline, you can still claim the exemption directly when filing your income tax return.
Disclaimer
This calculator implements the standard Section 10(13A) formula as of early 2026. Tax rules can change with each Union Budget. HRA rules apply only to salaried individuals who receive HRA as part of their salary and live in rented accommodation. This is not tax advice — consult a Chartered Accountant for your specific situation, especially for the old-vs-new regime decision.
Frequently asked questions
How is HRA exemption calculated?
HRA exemption is the lowest of three amounts: (1) actual HRA received, (2) 50% of basic+DA for metro cities or 40% for non-metro, and (3) rent paid minus 10% of basic+DA. The lowest of these three is your tax-exempt HRA; the rest is taxable.
Which cities count as metro for HRA?
Only four cities are 'metro' for HRA purposes: Delhi, Mumbai, Kolkata, and Chennai. These qualify for the 50% rate. All other cities, including Bangalore, Hyderabad, and Pune, are non-metro and use the 40% rate.
Can I claim HRA in the new tax regime?
No. HRA exemption under Section 10(13A) is only available in the old tax regime. If you opt for the new regime (default from FY 2023-24), you cannot claim HRA exemption, so the entire HRA is taxable.
Do I need rent receipts?
Yes. To claim HRA exemption you need rent receipts, and if annual rent exceeds Rs 1 lakh you must also provide your landlord's PAN. Keep these documents for your records and for submission to your employer.