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HRA Calculator

Enter your salary and rent — see your exact HRA exemption and how it's worked out, not just a final number.

⚠ HRA exemption only applies under the old tax regime. If you're on the new regime, this exemption doesn't apply to you, regardless of rent paid.
Annual HRA exemption
₹0
₹0 / month
Actual HRA received ₹0
Rent paid − 10% of salary ₹0
40% of salary (non-metro) ₹0
Taxable HRA (rest of it) ₹0

Claiming this needs rent receipts for the months you're counting.

Generate one free →

How HRA exemption is calculated

Under Section 10(13A) of the Income Tax Act, your HRA exemption is the lowest of three numbers:

  • The actual HRA your employer pays you
  • Rent you pay, minus 10% of your basic salary + DA
  • 50% of basic salary + DA if you live in a metro city, or 40% if you don't

Whichever of those three is smallest is what you can exempt. The rest of your HRA is taxed as normal income.

Metro vs non-metro — the part people get wrong

Only Delhi, Mumbai, Kolkata, and Chennai count as metro cities for this rule. That's it — Bengaluru, Pune, Hyderabad, Gurgaon, and Noida are all non-metro under this specific provision, even though they're obviously major cities. If you're in one of those and using 50% instead of 40%, you're overstating your exemption.

Worked example

Say you earn a basic salary of ₹40,000/month, receive ₹18,000/month as HRA, pay ₹15,000/month rent, and live in a non-metro city like Bengaluru or Pune. Here's how the three rules play out, annualized:

  • Rule 1 — actual HRA received: ₹18,000 × 12 = ₹2,16,000
  • Rule 2 — rent minus 10% of salary: (₹15,000 × 12) − 10% of (₹40,000 × 12) = ₹1,80,000 − ₹48,000 = ₹1,32,000
  • Rule 3 — 40% of salary (non-metro): 40% of ₹4,80,000 = ₹1,92,000

The lowest of the three is Rule 2, so the exemption is ₹1,32,000/year (₹11,000/month). The remaining ₹84,000/year of HRA received is taxed as normal income. Plug your own numbers into the calculator above to see your version of this.

Frequently asked

Is HRA exemption available under the new tax regime?

No. It's only available under the old tax regime. The new regime (default since FY 2023-24) doesn't allow it, no matter how much rent you pay.

What counts as a metro city for HRA?

Only Delhi, Mumbai, Kolkata, and Chennai. Every other city, including Bengaluru, Pune, and Hyderabad, is non-metro for this calculation.

Do I need rent receipts to claim HRA?

Yes, generally — most employers ask for them, plus your landlord's PAN if annual rent exceeds ₹1,00,000. You can generate receipts with our free rent receipt tool.

What if I pay rent but don't receive HRA from my employer?

You may be able to claim a deduction under Section 80GG instead — a separate provision with its own calculation and a ₹5,000/month cap.

Can I claim HRA if I pay rent to my parents?

Yes, if it's a genuine arrangement — your parents actually own the property, you actually pay them rent (ideally by bank transfer, with receipts), and they declare it as rental income on their own tax return. You can't claim HRA for rent paid to a spouse.

Is there a maximum limit on HRA exemption?

There's no fixed rupee cap — the exemption is simply whichever of the three rules above works out lowest for your numbers. For most people, that naturally keeps it well below their full HRA, which is the point of the calculation.

This is a general guide to help you estimate your exemption, not tax advice — confirm with a CA for your specific situation.

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