HRA Calculator
Calculate your House Rent Allowance tax exemption. Enter your basic salary, HRA received and rent paid to see the exempt and taxable portions of your HRA.
City Type
Metro cities (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) allow a 50% exemption; other cities allow 40%.
HRA Exempt from Tax
₹13,000
Per month
Taxable HRA
₹7,000
Per month
Exemption is the lowest of these three
Annual HRA exemption: ₹1.56 L. This reduces your taxable salary if you opt for the old tax regime. HRA exemption is not available under the new tax regime.
The HRA exemption under Section 10(13A) applies only under the old tax regime. You must actually pay rent and, for rent above Rs 1 lakh a year, provide the landlord's PAN.
What is HRA exemption?
House Rent Allowance (HRA) is a salary component paid by employers to employees who live in rented accommodation. Under the old tax regime, a portion of your HRA is tax-exempt under Section 10(13A) - the calculator works out exactly how much. HRA exemption is the minimum of three values: the actual HRA received, 50% of basic (40% in non-metro), and actual rent paid minus 10% of basic. The lowest of these three is your tax-exempt HRA; the rest is taxable.
How to use the HRA Calculator
- Enter your annual basic salary. HRA exemption is calculated on basic, not gross.
- Enter HRA received per year. Check your salary slip for the HRA component.
- Enter actual annual rent paid. Total rent paid in the financial year.
- Choose metro or non-metro. Mumbai, Delhi, Kolkata and Chennai are metros for HRA.
- Read the exemption and taxable portion. The lower of three rules sets the exempt amount.
Formula and method
Section 10(13A) of the Income Tax Act. HRA exemption is available only under the old tax regime. Under the new regime (default since FY 2023-24), HRA is fully taxable.
Smart HRA planning
- Old regime only. If you claim HRA, the old regime is often the better choice.
- Rent agreement and receipts. Required if HRA exceeds ₹1 lakh per year.
- PAN of landlord. Mandatory if annual rent exceeds ₹1 lakh.
- Pay parents rent. Legal and exempt if you live with parents - pay actual rent and they declare it as income.
- Maximise basic. A higher basic increases the 50%/40% cap on exemption.