HRA Calculator
Work out how much of your house rent allowance is exempt from tax.
Your inputs
Exemption is the least of: HRA received, rent paid minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic.
Estimates only. Figures are indicative and do not constitute financial advice.
About the HRA Calculator
"How much of my HRA is exempt from tax?" is one of the most-searched salary questions in India every tax season — and the honest answer is: it depends on three numbers, not just your HRA amount. This HRA calculator (house rent allowance calculator) works out your exact tax-free HRA using the same formula the Income Tax Department uses, so you know precisely how much to claim and how much of your HRA is actually taxable.
HRA exemption under Section 10(13A) is the lowest of three values: the actual HRA you receive from your employer, your rent paid minus 10% of your basic salary, and 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% for a non-metro city. Most people get this wrong by assuming their full HRA is exempt — in reality, if your rent is low relative to your HRA, a chunk of it can still be taxable. This calculator is built for salaried employees submitting rent receipts to HR, anyone comparing HRA exemption between a metro and non-metro posting, and freelancers or employees double-checking Form 16 before filing their ITR. Note that HRA exemption is only available under the old tax regime — if you've opted for the new regime, this calculation is for reference only.
How to use this calculator
- Enter your annual basic salary.
- Enter the HRA you actually receive from your employer, and the rent you pay.
- Select whether you live in a metro or non-metro city.
- See your exempt HRA and taxable HRA broken down instantly.
Frequently asked questions
›What is the HRA exemption formula?
HRA exemption is the minimum of: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary (metro) or 40% (non-metro).
›Which cities count as metro for HRA calculation?
Delhi, Mumbai, Kolkata, and Chennai are treated as metro cities (50% of basic salary cap). All other cities use the 40% cap for non-metro.
›Can I claim HRA exemption under the new tax regime?
No, HRA exemption is available only under the old tax regime. The new regime doesn't allow this or most other exemptions and deductions.
›Do I need rent receipts to claim HRA exemption?
Yes, most employers require rent receipts (and a rent agreement plus the landlord's PAN if annual rent exceeds ₹1 lakh) before including the exemption in your Form 16.
›What if I don't pay rent but still receive HRA?
If you pay no rent, your HRA exemption is nil — the entire HRA received becomes taxable, since the exemption formula depends on rent paid exceeding 10% of basic salary.
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Read the full guide
HRA Exemption Rules: How to Save Tax on Rent