HRA Exemption Calculator
By Santaji GadepatilinUpdated October 27, 2026
House Rent Allowance is partly tax-exempt under the old tax regime in India. The exempt amount is the lowest of three limits based on salary, rent paid and city. This free HRA exemption calculator solves for whichever value you leave blank and shows the formula and steps.
How to use the HRA exemption calculator
Enter your yearly basic salary plus dearness allowance, the HRA your employer pays, the rent you pay and choose your city. The calculator shows the tax-exempt part of your HRA and the part added to your taxable income.
If your salary or rent changed during the year, calculate each period separately and add the results.
The HRA rule
The exempt amount is the lowest of:
- Actual HRA received
- Rent paid − 10% of (basic + DA)
- 50% of (basic + DA) in a metro, or 40% in other cities
Exempt HRA = min(HRA, Rent − 0.1 × Basic, 0.5 or 0.4 × Basic)
Worked example
Basic + DA ₹6,00,000, HRA ₹2,40,000, rent ₹20,000 a month (₹2,40,000), living in Mumbai:
- Actual HRA = ₹2,40,000
- Rent − 10% of basic = 2,40,000 − 60,000 = ₹1,80,000
- 50% of basic = ₹3,00,000
The lowest is ₹1,80,000, so that much is exempt and ₹60,000 is taxable.
How rent changes the exemption
Same salary (basic ₹6,00,000, HRA ₹2,40,000), metro:
| Monthly rent | Exempt HRA | Taxable HRA |
|---|---|---|
| ₹5,000 | ₹0 | ₹2,40,000 |
| ₹10,000 | ₹60,000 | ₹1,80,000 |
| ₹15,000 | ₹1,20,000 | ₹1,20,000 |
| ₹20,000 | ₹1,80,000 | ₹60,000 |
| ₹25,000 | ₹2,40,000 | ₹0 |
| ₹30,000 | ₹2,40,000 | ₹0 |
Below ₹5,000 a month (10% of basic) there is no exemption at all. Above ₹25,000 the exemption is capped by the HRA itself.
Documents you need
- Rent receipts or a rent agreement.
- Landlord’s PAN if rent is above ₹1,00,000 a year.
- Submit proofs to your employer during the year so TDS is reduced.
Keep in mind
- HRA exemption applies only in the old regime. Use the income tax calculator to see if the old regime still saves you tax.
- If you do not receive HRA but pay rent, you may be able to claim a smaller deduction under section 80GG in the old regime.
- You cannot claim HRA for a house you own and live in.
Frequently asked questions
How is HRA exemption calculated?
The exemption is the lowest of three amounts — actual HRA received, rent paid minus 10% of basic + DA, and 50% of basic + DA in a metro (40% elsewhere).
Can I claim HRA in the new tax regime?
No. HRA exemption is available only under the old regime.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai. Bengaluru, Hyderabad, Pune and others use the 40% limit.
Do I need my landlord’s PAN?
Yes, if the rent you pay is more than ₹1 lakh a year. Keep rent receipts or a rent agreement as proof.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent and they own the house. They must show it as rental income.