HRA Exemption Calculator
Calculate HRA exemption under Section 10(13A). Find how much HRA is tax-exempt based on your salary and rent paid.
About this calculator
House Rent Allowance is part of most salaries in India, and a large part of it can be tax-free if you pay rent. This calculator applies the three-way test of Section 10(13A) and tells you the exempt and the taxable portion of your HRA, every month and for the year.
You need three numbers from your payslip and rent receipt: basic salary, HRA received and rent paid. Choose a metro or non-metro city, because the third test uses 50% of basic in the eight metros and 40% elsewhere.
How to use it
- Enter your Basic Salary per Month. Include dearness allowance if it forms part of retirement benefits.
- Enter the HRA Received per Month.
- Enter the Actual Rent Paid per Month.
- Choose the City Type: metro or non-metro.
- Press Calculate HRA Exemption to see the three conditions, the exempt amount and the taxable HRA.
The three-way HRA test
HRA exemption under Section 10(13A) is the lowest of three numbers: (1) the HRA you actually receive, (2) rent paid minus 10% of basic salary (plus DA), and (3) 50% of basic for metro cities or 40% for non-metro. The rule applies per month. A metro here means Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Whatever HRA is not exempt is added to your taxable income.
Worked example
Basic ₹50,000, HRA received ₹20,000, rent paid ₹18,000, metro city
| Actual HRA received | ₹20,000 a month |
| Rent paid − 10% of basic | ₹13,000 a month |
| 50% of basic (metro) | ₹25,000 a month |
| Exempt HRA (lowest) | ₹13,000 a month, ₹1,56,000 a year |
| Taxable HRA | ₹7,000 a month, ₹84,000 a year |
Rent is the limiting factor here. Paying ₹23,000 rent instead would lift the exemption to ₹18,000 a month, because the rent test would rise from ₹13,000 to ₹18,000.
Tips and common mistakes
- The exemption is available only in the old tax regime.
- Keep rent receipts and the landlord's PAN if the annual rent exceeds ₹1 lakh.
- Rent paid to a parent is allowed only if it is real, paid by bank transfer, and declared as income by the parent.
- Rent paid in a different city from where you work is still valid, but the metro test uses the city of your residence.
- If you do not receive HRA, Section 80GG gives a limited deduction for rent paid.
Frequently asked questions
How is HRA exemption calculated?
It is the lowest of actual HRA received, rent paid minus 10% of basic, and 50% of basic in a metro or 40% in a non-metro.
Which cities count as metro for HRA?
This calculator treats Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad as metros. Check the latest rules if you live in a city outside this list.
Is HRA exempt in the new tax regime?
No. HRA exemption is available only in the old regime.
Do I need rent receipts?
Yes. Keep monthly receipts, and the landlord's PAN if annual rent is above ₹1,00,000.
Can I claim HRA if I live in my own house?
No, you must actually pay rent. If you have a home loan on a house in another city, you can claim both HRA and home loan interest in the old regime.
What if I do not get HRA from my employer?
You may claim a limited deduction under Section 80GG instead.