HRA exemption calculator
Find out how much of your house rent allowance is tax free, and how much of it you still pay tax on.
HRA exemption is available only under the old tax regime. If you have opted for the new regime, your entire HRA is taxable, whatever this calculation shows.
Your numbers
The three limits, and which one applies
Take the yearly tax-free figure and enter it in the HRA field on the tax regime calculator to see whether the old regime still works out better for you. Tax regime
Estimate under section 10(13A) for FY 2025–26. Employers ask for rent receipts, and for rent above ₹1 lakh a year they also need the landlord's PAN.
Source: Income Tax Department, incometax.gov.in
This is general educational information based on the numbers you entered, not personalised investment advice. Please consult a SEBI-registered investment adviser before making investment decisions.
Common questions
How is HRA exemption calculated?
Your exemption is the smallest of three figures: the HRA your employer actually paid you, the rent you paid minus 10% of salary, and 50% of salary if you rent in Delhi, Mumbai, Kolkata or Chennai or 40% anywhere else. Whichever of those three is lowest becomes your exemption, which is why a high HRA on your payslip does not automatically mean a high exemption.
Which cities count as metro for HRA?
Only four: Delhi, Mumbai, Kolkata and Chennai. This is the single most common mistake with HRA. Bengaluru, Hyderabad, Pune, Ahmedabad and Gurugram are all non-metro for this purpose and get the 40% rate, no matter how expensive they are to live in or how they are classified for other allowances.
What counts as salary for the HRA calculation?
Basic salary plus dearness allowance, and commission if it is a fixed percentage of turnover. It is not CTC, not gross salary and not your in-hand pay. Most private-sector employees have no dearness allowance, so for them it is simply basic. Using gross salary instead of basic is the other frequent error, and it inflates the exemption considerably.
Can I claim HRA under the new tax regime?
No. The HRA exemption under section 10(13A) is available only under the old regime. If you have opted for the new regime your entire HRA is taxable, so the figure this calculator produces is useful only when you are weighing the old regime. Work out the exemption here, then put the yearly amount into the tax regime calculator to see which regime actually leaves you better off.
Why is my exemption zero even though I pay rent?
Usually because your rent is less than 10% of your basic salary, which makes the second limit zero and caps the exemption there. The other reason is that your payslip has no HRA component at all, and the exemption can never exceed the HRA you were actually paid. The calculator tells you which of the two applies.
What proof do I need to claim HRA?
Employers generally ask for rent receipts, and a rent agreement if the amount is large. Once your rent crosses ₹1 lakh in a year, you must also report the landlord's PAN. You can claim HRA for rent paid to a parent if the arrangement is genuine and they declare the income, but paying rent to a spouse is routinely challenged.