HRA Calculator
Calculate your House Rent Allowance exemption under Section 10(13A). Enter basic salary, HRA received and rent to see the exempt and taxable HRA instantly.
Updated 2026-06-14 · Free · No sign-up · Runs privately in your browser
Show the three figures & the least
How the HRA Calculator Works
This calculator finds how much of your House Rent Allowance (HRA) is exempt from income tax and how much remains taxable, under Section 10(13A) of the Indian Income Tax Act (old regime). Enter your annual basic salary (plus DA), the HRA received, the rent paid and your city type, and it returns the exempt and taxable amounts.
The Formula
The exempt HRA is the least of three amounts (all annual):
- Actual HRA received
- Rent paid − 10% of basic salary
- 50% of basic salary (metro city) or 40% (non-metro)
Then:
Taxable HRA = HRA received − exempt HRA
“Basic salary” here means basic pay plus dearness allowance (DA), if your DA forms part of retirement benefits. Metro cities for this rule are Delhi, Mumbai, Kolkata and Chennai.
Worked Example
Suppose your annual figures are: basic salary ₹6,00,000, HRA received ₹2,40,000, rent paid ₹2,16,000, living in a metro:
- Actual HRA received = ₹2,40,000
- Rent − 10% of basic = 2,16,000 − 60,000 = ₹1,56,000
- 50% of basic = ₹3,00,000
The least of these is ₹1,56,000, so:
- Exempt HRA = ₹1,56,000
- Taxable HRA = 2,40,000 − 1,56,000 = ₹84,000
Comparing the Three Figures
| Condition | Amount |
|---|---|
| Actual HRA received | ₹2,40,000 |
| Rent paid − 10% of basic | ₹1,56,000 |
| 50% of basic (metro) | ₹3,00,000 |
| Exempt (the least) | ₹1,56,000 |
Tips to Maximise Your HRA Exemption
- The exemption is capped by the lowest of the three, so paying more rent only helps until the actual-HRA or percentage limit binds.
- If you live in a metro, you can claim up to 50% of basic instead of 40% — confirm your city qualifies.
- A higher basic salary raises both the 10% deduction (figure 2) and the 50%/40% ceiling (figure 3), so the effect on the exemption depends on which figure is the least.
Important Notes
- HRA exemption is available only in the old tax regime; in the new regime HRA is fully taxable.
- Keep rent receipts, and report the landlord’s PAN if annual rent exceeds ₹1,00,000.
- If you do not actually pay rent, you cannot claim the exemption even if HRA appears in your salary.
To compare your overall tax under both regimes, use a dedicated income tax calculator.
Frequently asked questions
How is HRA exemption calculated?+
Under Section 10(13A), the exempt HRA is the least of three amounts: the actual HRA received, the rent you paid minus 10% of your basic salary, and 50% of basic salary if you live in a metro city (40% if non-metro). The remaining HRA is taxable.
Which cities count as metro for HRA?+
For HRA, the metro cities are Delhi, Mumbai, Kolkata and Chennai. If you live in any of these, you can claim up to 50% of your basic salary; everywhere else the limit is 40%. The other two figures in the formula do not change.
What is the HRA exemption on a 6 lakh basic salary?+
With a basic of ₹6,00,000, HRA received of ₹2,40,000 and rent of ₹2,16,000 in a metro, the three figures are ₹2,40,000, ₹1,56,000 and ₹3,00,000. The least is ₹1,56,000 exempt, leaving ₹84,000 of HRA taxable.
Can I claim HRA in the new tax regime?+
No. The HRA exemption under Section 10(13A) is available only in the old tax regime. If you opt for the new regime, HRA is fully taxable. Compare both regimes before choosing, especially if you pay significant rent.
Do I need rent receipts to claim HRA?+
Yes. Employers require rent receipts, and if your annual rent exceeds ₹1,00,000 you must also report the landlord's PAN. Keep a rent agreement and payment proof; salaried taxpayers can claim HRA even without these at filing, but documentation protects you in an assessment.