HRA Exemption Calculator | Calculate Tax-Free HRA

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HRA Calculator

House Rent Allowance Exemption — Section 10(13A)

Old Regime

Salary & Rent Details

Basic Salary Annual

₹

HRA Received Annual from employer

₹

Rent Paid Annual

₹

City Type

📐 The 3 Conditions — Minimum is Exempt

Condition 1: Actual HRA Received

From employer

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Condition 2: Rent Paid − 10% of Basic

Actual rent − 10% basic

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Condition 3: 50% of Basic (Metro)

Metro = 50%, Non-Metro = 40%

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Taxable HRA

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Monthly Exemption

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⚠️ HRA exemption is only available under the Old Tax Regime. Under the New Regime, the entire HRA received is taxable. Available only for salaried employees who are paying rent.

How is HRA Exemption Calculated?

HRA exemption under Section 10(13A) is the minimum of three amounts: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% of basic (non-metro). The minimum of these three is exempt from income tax.

Metro vs Non-Metro Cities

Only four cities qualify as metro for HRA purposes: Delhi, Mumbai, Kolkata, and Chennai. For these cities, the exemption limit is 50% of basic salary. All other cities — including Bangalore, Hyderabad, Pune, and Ahmedabad — are treated as non-metro at 40%.

Frequently Asked Questions

How is HRA exemption calculated?▾

HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic for metro cities or 40% for non-metro cities. The lowest of the three amounts is your tax-exempt HRA.

Can I claim HRA if I live in my own house?▾

No. HRA exemption is only available if you are actually paying rent. If you live in your own house, the entire HRA received from employer is fully taxable as salary income.

Can I claim both HRA and home loan deduction?▾

Yes, you can claim both — if you are paying rent at your work city and have a home loan on a property in another city (e.g. hometown). Both exemptions can be claimed simultaneously with proper documentation.

Is rent agreement mandatory to claim HRA?▾

For rent above ₹1 lakh per year (₹8,333/month), you must submit the landlord's PAN card to your employer along with rent receipts. For lower amounts, rent receipts alone are generally sufficient.