HRA Exemption Calculator
Find out how much of your HRA is tax-free using the 3-condition formula under Section 10(13A). Works for the old tax regime only (FY 2025-26).
Enter salary details (per year)
How the exemption is calculated
The HRA exemption is the least of these three conditions:
Annual Summary
Frequently Asked Questions
What is HRA exemption and who is eligible?
HRA (House Rent Allowance) exemption allows salaried employees to reduce their taxable income by the HRA amount received from their employer, subject to limits. You are eligible only if you (1) receive HRA as part of your salary, (2) actually pay rent for accommodation, and (3) do not own residential property in the city where you work. HRA exemption is only available under the old tax regime.
How is HRA exemption calculated?
The exemption is the minimum of three conditions: (1) Actual HRA received from employer, (2) 50% of basic salary for metro cities or 40% for non-metro cities, (3) Rent paid minus 10% of basic salary. Whichever amount is lowest among these three is the tax-free HRA.
Which cities are considered metro for HRA purposes?
For HRA exemption purposes under Income Tax rules, only four cities are classified as metro: Mumbai, Delhi (and NCR), Kolkata, and Chennai. All other cities — including Bengaluru, Hyderabad, Pune, Ahmedabad — are treated as non-metro, allowing only 40% of basic salary as HRA exemption.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption is not available under the new tax regime. The new regime offers lower slab rates but eliminates most deductions and exemptions including HRA, 80C, 80D etc. If your HRA + other deductions significantly exceed ₹75,000 (the standard deduction under the new regime), the old regime may save you more tax.
Do I need to submit rent receipts?
If your annual rent exceeds ₹1 lakh, you must provide the landlord's PAN to your employer. For amounts below ₹1 lakh, rent receipts are generally sufficient. Your employer will account for the exemption while deducting TDS; you can also claim it yourself while filing your ITR.