HRA Exemption Calculator
Enter your monthly basic salary, DA, HRA received and rent paid, choose metro or non-metro, and the calculator returns your annual tax-free HRA, the winning condition and your estimated tax saving.
Note: Rent receipts & landlord PAN (for rent > ₹8,333/month) needed at time of filing.
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Your HRA exemption is the lowest of three amounts: (1) actual HRA received, (2) rent paid minus 10% of (Basic + DA), and (3) 50% of Basic + DA for metro cities or 40% for non-metro. Only that lowest figure is tax-free under Section 10(13A), and only if you are on the old tax regime. The new regime does not allow HRA exemption.
How the HRA Exemption Is Calculated
HRA (House Rent Allowance) paid by your employer is partly or fully exempt from income tax under Section 10(13A) read with Rule 2A. The exempt portion equals the minimum of the three conditions below (computed for the period you actually paid rent).
- Condition 1: Actual HRA received from the employer.
- Condition 2: Actual rent paid − 10% of (Basic Salary + DA).
- Condition 3: 50% of (Basic + DA) for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities.
The remaining HRA is added to your taxable salary. Because Condition 2 uses rent paid, paying little or no rent usually collapses your exemption to near zero even if your employer pays a large HRA.
HRA Exemption Example (FY 2025-26)
Assume a metro employee with Basic + DA of ₹50,000/month, HRA received ₹20,000/month and rent paid ₹18,000/month. The three monthly conditions work out as below — the lowest wins.
| Condition | Formula | Monthly | Annual |
|---|---|---|---|
| 1 · Actual HRA received | ₹20,000 | ₹20,000 | ₹2,40,000 |
| 2 · Rent − 10% (Basic+DA) | ₹18,000 − ₹5,000 | ₹13,000 | ₹1,56,000 |
| 3 · 50% of Basic+DA (metro) | 50% × ₹50,000 | ₹25,000 | ₹3,00,000 |
| Exempt = minimum of the three | Condition 2 | ₹13,000 | ₹1,56,000 |
Non-metro would use 40% in Condition 3 (₹20,000/month here). Metro cities for HRA: Delhi, Mumbai, Kolkata, Chennai only.
Who Can Claim HRA — and the Documents Needed
- You are a salaried employee receiving HRA as part of your CTC.
- You actually pay rent and live in the rented house.
- You have opted for the old tax regime (HRA is not allowed in the new regime).
- Rent receipts are collected — mandatory when annual rent exceeds ₹1,00,000.
- Landlord's PAN is provided when annual rent exceeds ₹1,00,000.
- Rent paid to parents is allowed if they own the property and report it as income.
Under the new tax regime (the default from FY 2023-24), the Section 10(13A) HRA exemption is not available — only the ₹75,000 standard deduction applies to salary. Compare both regimes before deciding, especially if your rent is high.
Self-employed individuals cannot claim HRA but may claim rent relief under Section 80GG. If you own a let-out property elsewhere, you can also claim home-loan interest alongside HRA in genuine cases.
HRA Calculator — Frequently Asked Questions
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