HRA exemption calculator
See how much of your House Rent Allowance is tax-free. Enter your basic salary, HRA received and rent paid - the calculator applies the least-of-three rule and shows your exempt and taxable HRA.
HRA details
Monthly figures - results update live
City type
Exemption is the least of these
- Actual HRA received₹20,000
- LeastRent paid − 10% of basic₹14,000
- 50% of basic salary₹20,000
Exempt vs taxable HRA
Monthly split of the HRA you receive
- Exempt₹14K
- Taxable₹6K
HRA exempt / year
₹1,68,000
Least of three
The HRA exemption rule
Your tax-free HRA isn’t simply what you receive - it’s capped by the smallest of three limits. The more rent you pay relative to your basic salary, the larger your exemption tends to be.
- 1
Actual HRA received
You can never exempt more HRA than your salary actually pays you.
- 2
Rent − 10% of basic
Rewards real rent outgo above a tenth of your basic salary.
- 3
50% / 40% of basic
Half your basic in the four metros, 40% everywhere else.
- 4
Take the smallest
The least of the three is exempt; the rest of your HRA is taxed.
Questions
Frequently asked
Under Section 10(13A), the exempt HRA is the least of three amounts: (1) the actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic salary for metro cities or 40% for non-metro. Whichever is smallest is your tax-free HRA; the rest of your HRA is taxable.
For HRA, only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities, qualifying for the 50% of basic limit. All other cities - including Bengaluru, Hyderabad and Pune - are non-metro and use the 40% limit.
No. The HRA exemption is available only under the old tax regime. The new regime does not allow it, which is one of the main reasons people with significant rent and HRA still choose the old regime. Use our income tax calculator to compare both regimes.
Yes, if you genuinely pay rent to your parents who own the home. You should have a rent agreement and actually transfer the rent; your parents must declare that rental income. The exemption is then computed exactly as for any landlord.
Rent receipts and, for annual rent above ₹1 lakh, your landlord’s PAN. A rent agreement is advisable. Salaried employees usually submit these to their employer; if not, you can still claim the exemption when filing your return.
If your salary has no HRA component, you can instead claim a deduction for rent under Section 80GG (subject to its own limits), available in the old regime. This HRA calculator applies specifically when HRA is part of your salary.