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
Understanding the HRA Exemption Calculator
The HRA Exemption Calculator (India) estimates how much of your House Rent Allowance is exempt from income tax under Section 10(13A) of the Income Tax Act, 1961. Enter your basic salary plus dearness allowance, the HRA you receive, the rent you actually pay, and whether you live in a metro city, and the tool shows the exempt portion and the balance that stays taxable. It is built for salaried tenants who want a quick, private estimate before filing or planning. Note that HRA exemption is available only under the old tax regime; the new regime does not allow it. All calculations run in your browser, so your salary and rent details never leave your device.
How it works
HRA exemption is capped at the least of three amounts, so the tool computes all three and takes the smallest. First is the actual HRA your employer pays. Second is the rent you pay minus 10% of your salary for the same period. Third is 50% of your salary if you live in a metro city (Delhi, Mumbai, Kolkata, or Chennai) or 40% if you live anywhere else. Here salary means basic pay plus dearness allowance, and any commission received as a fixed percentage of turnover. The least of these three figures is your exempt HRA; the remainder of the HRA you received is added to your taxable salary. The calculator can work on monthly or annual figures as long as every input covers the same period.
Worked Example
Suppose your salary (Basic + DA) is ₹40,000 a month, you receive HRA of ₹18,000, pay rent of ₹15,000, and live in Mumbai (a metro). The three limits are: actual HRA = ₹18,000; rent minus 10% of salary = 15,000 − 4,000 = ₹11,000; and 50% of salary = ₹20,000. The least is ₹11,000, so ₹11,000 a month (₹1,32,000 a year) is exempt and the remaining ₹7,000 a month (₹84,000 a year) is added to taxable income. Living in a non-metro would cap the third limit at 40% (₹16,000), but here the rent-minus-10% figure still binds at ₹11,000.
Tips & Common Mistakes
- HRA exemption applies only under the old tax regime; if you opt for the new regime, none of your HRA is exempt.
- Salary here means Basic pay plus Dearness Allowance (and commission fixed as a percentage of turnover) - do not include other allowances.
- Only Delhi, Mumbai, Kolkata, and Chennai count as metro cities for the 50% limit; every other city, including Bengaluru and Hyderabad, uses 40%.
- You can claim exemption only for rent you actually pay; if rent is 10% of salary or less, the second limit is zero and no exemption is available.
- Keep rent receipts, and quote the landlord's PAN if your annual rent exceeds ₹1,00,000, as employers and the tax department may ask for proof.
- This is an estimate for planning, not tax advice; recompute if your salary, rent, or city changes during the year and consult a professional for filing.
Sources & Methodology
- →Income Tax Department, India - Section 10(13A) & Rule 2A, House Rent Allowance (https://www.incometax.gov.in)
- →Income Tax Act, 1961 - Section 10(13A) and Income Tax Rules, Rule 2A
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Built and maintained by TopOpenTools · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.
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.