HRA Calculator
Find out how much of your House Rent Allowance is tax-free. Enter your annual basic, HRA received and rent paid — all figures are annual.
HRA exemption (tax-free)
₹0
The least of the three statutory limits
Taxable HRA
₹0
HRA received minus exemption
Annual rent paid
₹0
Monthly rent × 12
How HRA exemption is calculated
Section 10(13A) of the Income-tax Act lets salaried employees exclude part of their House Rent Allowance from taxable income. The exempt amount is the minimum of these three:
- Actual HRA received during the year
- Rent paid minus 10% of basic salary (annual rent − 10% of annual basic)
- 50% of basic salary if you live in a metro (Delhi, Mumbai, Chennai, Kolkata), else 40% of basic
Whatever HRA remains after subtracting the exemption is taxable as salary. "Basic" here means basic salary plus dearness allowance.
Worked example
Say your annual basic is ₹6,00,000, HRA received is ₹2,40,000, you pay ₹20,000/month rent (₹2,40,000/year) and live in a metro:
- Actual HRA received = ₹2,40,000
- Rent − 10% of basic = ₹2,40,000 − ₹60,000 = ₹1,80,000
- 50% of basic (metro) = ₹3,00,000
- Exempt HRA = minimum = ₹1,80,000; taxable HRA = ₹2,40,000 − ₹1,80,000 = ₹60,000
India-specific notes
- Old regime only: the new tax regime disallows HRA exemption entirely. With the ₹12 lakh 87A rebate, many renters now pay zero tax under the new regime anyway — run the income tax calculator to see which regime wins for you.
- Proof: keep rent receipts or a registered rent agreement. For monthly rent above ₹1,00,000, your landlord's PAN is mandatory — without it, the exemption can be disallowed.
- Living with parents: you can claim HRA by paying rent to your parents, provided they declare it as rental income. Use bank transfers (not cash) and keep a rent agreement.
- Own house: if you live in your own house, no HRA exemption is available — but home-loan interest (up to ₹2 lakh, old regime) may be deductible instead.
- If you pay rent for only part of the year, the calculation is pro-rated to the months you actually paid rent.
Frequently asked questions
What is HRA exemption?
HRA (House Rent Allowance) exemption under Section 10(13A) lets salaried employees exclude part of their HRA from taxable income. The exempt amount is the least of: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% (non-metro). The remaining HRA is taxable.
How is HRA exemption calculated?
Take the minimum of three amounts: (1) actual HRA received, (2) annual rent paid minus 10% of annual basic salary, and (3) 50% of basic for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% elsewhere. That minimum is exempt; the balance of HRA is taxable.
Can I claim HRA exemption in the new tax regime?
No. The new tax regime does not allow HRA exemption — the entire HRA is taxable there. HRA exemption is available only under the old tax regime, so compare both regimes with our income tax calculator before choosing.
Do I need rent receipts to claim HRA?
Yes — keep rent receipts or a rent agreement as proof. If your monthly rent exceeds ₹1,00,000, you must also report your landlord's PAN to your employer; without it, the exemption claim can be disallowed.
Can I claim HRA if I live with my parents?
Yes, if you genuinely pay rent to your parents and they declare that rental income in their tax return. Keep a rent agreement and payment proof — bank transfers rather than cash — to support the claim.