HRA Calculator
Find out how much of your House Rent Allowance is tax-free. Enter your annual basic, HRA received and rent paid — all figures are annual.
HRA exemption (tax-free)
₹0
The least of the three statutory limits
Taxable HRA
₹0
HRA received minus exemption
Annual rent paid
₹0
Monthly rent × 12
How HRA exemption is calculated
Section 10(13A) of the Income-tax Act lets salaried employees keep part of their House Rent Allowance out of taxable income. The exempt amount is the minimum of these three:
- Actual HRA received during the year
- Rent paid minus 10% of basic salary (annual rent − 10% of annual basic)
- 50% of basic salary in a metro (Delhi, Mumbai, Chennai, Kolkata), else 40% of basic
Any HRA left after the exemption is taxable as salary. "Basic" here means basic salary plus dearness allowance.
Worked example
Take an annual basic of ₹6,00,000, HRA received of ₹2,40,000, rent of ₹20,000 a month (₹2,40,000 a year), living in a metro:
- Actual HRA received = ₹2,40,000
- Rent − 10% of basic = ₹2,40,000 − ₹60,000 = ₹1,80,000
- 50% of basic (metro) = ₹3,00,000
- Exempt HRA = minimum = ₹1,80,000; taxable HRA = ₹2,40,000 − ₹1,80,000 = ₹60,000
India-specific notes
- Old regime only: the new tax regime disallows HRA exemption completely. With the ₹12 lakh 87A rebate, many renters pay zero tax under the new regime anyway — run the income tax calculator to see which regime wins for you.
- Proof: keep rent receipts or a registered rent agreement. If your monthly rent is above ₹1,00,000, your landlord's PAN is mandatory — without it, the exemption can be disallowed.
- Living with parents: you can claim HRA by paying rent to your parents, as long as they declare it as rental income. Pay by bank transfer (not cash) and keep a rent agreement.
- Own house: no HRA exemption if you live in your own house — but home-loan interest (up to ₹2 lakh, old regime) may be deductible instead.
- Paying rent for only part of the year? The calculation is pro-rated to the months you actually paid rent.
How to use this HRA calculator
- Enter your annual basic salary (basic plus DA), as shown on your salary slip or Form 16.
- Add the annual HRA your employer pays you.
- Enter your monthly rent and pick metro or non-metro.
- Press Calculate — the exemption is the least of the three statutory limits.
Three worked scenarios
The binding limit changes from person to person. These three cases show each of the three rules deciding the answer in turn:
| Case | Rent minus 10% of basic | Percentage-of-basic limit | Exempt HRA | Taxable HRA |
|---|---|---|---|---|
| Basic ₹6,00,000, HRA ₹2,40,000, metro, rent ₹20,000 a month | ₹1,80,000 | ₹3,00,000 | ₹1,80,000 | ₹60,000 |
| Basic ₹12,00,000, HRA ₹2,00,000, metro, rent ₹30,000 a month | ₹2,40,000 | ₹6,00,000 | ₹2,00,000 | ₹0 |
| Basic ₹6,00,000, HRA ₹3,60,000, metro, rent ₹40,000 a month | ₹4,20,000 | ₹3,00,000 | ₹3,00,000 | ₹60,000 |
In the second case the exemption is capped by the HRA actually received — you cannot exempt more than you got. In the third, even very high rent cannot push the exemption past the 50% of basic ceiling for a metro city. Most salaried renters land in the first pattern, where rent minus 10% of basic is the deciding number.
Frequently asked questions
What is HRA exemption?
HRA (House Rent Allowance) exemption under Section 10(13A) lets salaried employees keep part of their HRA out of taxable income. The exempt amount is the smallest of three: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% (non-metro). The rest of the HRA is taxable.
How is HRA exemption calculated?
Take the minimum of three amounts: (1) actual HRA received, (2) annual rent paid minus 10% of annual basic salary, and (3) 50% of basic for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% elsewhere. That minimum is tax-free; the balance of HRA is taxable.
Can I claim HRA exemption in the new tax regime?
No. The new tax regime disallows HRA exemption — your entire HRA is taxable there. It's available only under the old tax regime, so compare both with our income tax calculator before choosing.
Do I need rent receipts to claim HRA?
Yes — keep rent receipts or a rent agreement as proof. If your monthly rent is above ₹1,00,000, you must also report your landlord's PAN to your employer; without it, the exemption claim can be disallowed.
Can I claim HRA if I live with my parents?
Yes, if you genuinely pay them rent and they declare that rental income in their tax return. Keep a rent agreement and pay by bank transfer rather than cash, so you have proof to support the claim.
Can I claim HRA exemption and home loan benefits together?
Yes, if both are genuine. You can claim HRA exemption on rent for the house you live in and, at the same time, claim home loan interest deduction for a house you own — for example one in another city, or one that is let out. Both claims work only under the old tax regime, and you should keep documents for both.