HRA Exemption Calculator
Work out how much of your house rent allowance is tax-free under Section 10(13A), and how much is taxable.
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- Private — runs in your browser
Only DA that counts for retirement benefits
HRA exempt from tax
₹2,40,000
for 12 months · taxable HRA ₹0
How your exemption is worked out
How to use the HRA Exemption calculator
Enter your monthly basic salary, dearness allowance (only the part that counts for retirement benefits), the HRA your employer pays and the rent you pay. Choose whether you live in a metro city and for how many months of the year you paid rent. Your salary slip shows basic, DA and HRA separately.
The calculator applies the three limits of Section 10(13A) and Rule 2A and shows which one restricts your exemption, the taxable part of your HRA, and how much rent would be needed to make all of your HRA tax-free.
Formula
The HRA exemption is the least of these three amounts for the period you rented:
Exempt HRA = min( HRA received, Rent − 10% × Salary, 50% or 40% × Salary )- Salary = basic + DA (forming part of retirement benefits) + commission based on a fixed % of turnover
- 50% applies in the metro cities Delhi, Mumbai, Kolkata and Chennai; 40% everywhere else
Example: basic ₹50,000/month, HRA ₹20,000, rent ₹25,000 in Mumbai → limits ₹2.4 lakh, ₹2.4 lakh and ₹3 lakh a year, so ₹2.4 lakh is exempt.
Frequently asked questions
How is HRA exemption calculated?
HRA exemption is the lowest of three amounts: the HRA you actually receive, rent paid minus 10% of basic salary plus DA, and 50% of basic plus DA for metro cities (40% for non-metros). The rest of your HRA is added to your taxable salary.
Can I claim HRA in the new tax regime?
No. The HRA exemption under Section 10(13A) is available only in the old tax regime. In the new regime the full HRA is taxable, so compare both regimes with the income tax calculator before choosing.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% limit under Rule 2A for FY 2025-26. Cities such as Bengaluru, Hyderabad and Pune are treated as non-metro (40%) under the current rules.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent to parents who own the house, have a rent agreement or receipts and transfer the money through the bank. Your parents must show the rent as income in their tax return. Rent paid to a spouse is usually disallowed, because spouses are treated as sharing the home.
Do I need my landlord’s PAN for HRA?
Yes, if the rent you pay exceeds ₹1 lakh a year (about ₹8,333 a month), you must give your employer the landlord’s PAN. Rent receipts are generally asked for when rent exceeds ₹3,000 a month.
What if I don’t receive HRA but pay rent?
If HRA is not part of your salary (for example, you are self-employed), you can claim a deduction under Section 80GG in the old regime: the least of ₹5,000 a month, 25% of total income, or rent minus 10% of total income.