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HRA ExemptionCalculator

Find out exactly how much of your House Rent Allowance is tax-free, and how much is taxable.

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Calculate Your HRA Exemption

Available only if you're on the Old Tax Regime.

₹6,00,000
1,00,00030,00,000
₹2,40,000
015,00,000
₹3,00,000
015,00,000

HRA Exemption

₹2,40,000

Out of ₹2,40,000 HRA received, you can claim ₹2,40,000 as exempt (limited by: Actual HRA received). The remaining ₹0 is added to your taxable salary.

The Three Amounts Compared

Actual HRA received₹2,40,000
Rent paid − 10% of salary₹2,40,000
50% of salary (metro)₹3,00,000
Exemption (lowest of the three)₹2,40,000

Result Summary

HRA received₹2,40,000
HRA exempt₹2,40,000
Taxable HRA₹0

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Full HRA breakdown you can save or share with HR.

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Disclaimer: HRA exemption is available only under the Old Tax Regime — it is fully taxable under the New Regime. Metro rate (50%) applies only to Delhi, Mumbai, Kolkata and Chennai; every other city uses the 40% rate. This is a planning estimate — confirm your exact figures with us before filing.

HRA is only one part of your Old vs New Regime decision

A large HRA exemption is one of the strongest reasons to stay on the Old Regime — but it only matters if the exemption, combined with your Section 80C and 80D deductions, is enough to beat what the New Regime already gives you for free.

Take the exemption amount above and plug it into our Income Tax Calculator (along with 80C/80D) to see which regime actually saves you more this year.

Filing your return with the right regime and the right exemptions claimed? Our income tax return filing team can take it from here.

Want us to check your full computation?

We handle income tax filing for salaried individuals and businesses across India. The first consultation is free.

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Frequently Asked Questions

How is HRA exemption calculated?

HRA exemption is the LEAST of three amounts: (1) actual HRA received from your employer, (2) rent paid minus 10% of your salary (Basic + DA), and (3) 50% of your salary if you live in a metro city, or 40% if you live elsewhere. Whichever of these three is smallest is your exempt amount.

Which cities count as 'metro' for the 50% rate?

Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50%-of-salary rate. Every other city — including Bengaluru, Pune, Hyderabad and Ahmedabad — uses the 40% rate. Some websites claim this list expanded to 8 cities from FY 2026-27, but we could not confirm this against any official notification, so this calculator uses the verified 4-city rule.

Can I claim HRA exemption under the New Tax Regime?

No. HRA exemption under Section 10(13A) is available only if you opt for the Old Tax Regime. Under the New Regime, your entire HRA received is taxable as part of your salary.

What if I don't pay rent, or my rent is very low?

If your rent paid is less than 10% of your salary, the 'rent minus 10% of salary' figure becomes zero or negative — meaning you likely won't get any HRA exemption, even if your employer pays you HRA. In that case, the entire HRA is taxable.

Do I need rent receipts to claim this exemption?

Yes — your employer will typically ask for rent receipts (and a PAN of the landlord if annual rent exceeds ₹1,00,000) to allow the exemption in your Form 16. Keep these on file even if not asked immediately, as the tax department can ask for them later.

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