HRA Calculator (India)
Minimise your tax on house rent: enter your basic salary, HRA received and rent paid to see how much of your allowance is exempt and how much is still taxable.
What is an HRA exemption?
House Rent Allowance (HRA) is a part of your salary given to cover the cost of living in rented accommodation. Under Section 10(13A) and Rule 2A of the Income Tax Act, 1961, a portion of this allowance can be exempted from tax — but only if you actually pay rent. The exempt amount is the least of three figures: (1) the actual HRA you receive, (2) the rent you pay minus 10% of your basic salary and DA, and (3) either 50% of your basic salary and DA if you live in a metro city (Delhi, Mumbai, Kolkata or Chennai) or 40% if you live anywhere else as a non-metro city.
Higher rent and a higher basic salary usually mean a larger exemption, and the remainder — the taxable HRA — is added to your salary and taxed at your slab rate. This calculator applies all three rules and picks the lowest to show your exempt and taxable HRA. It runs entirely in your browser, so nothing is uploaded.
How to use
- Enter your annual basic salary + DA.
- Enter the annual HRA you receive.
- Enter the annual rent you actually pay.
- Choose metro or non-metro, then click Calculate HRA.
How HRA exemption is calculated
Exempt HRA = Least of: 1. Actual HRA received 2. Rent paid − 10% of (basic + DA) 3. 50% of (basic + DA) if metro, or 40% if non-metro Taxable HRA = HRA received − Exempt HRA
The three rules are defined under Rule 2A read with Section 10(13A), and the lowest value is the amount you can claim tax-free.
Example
With the defaults — ₹6,00,000 basic + DA, ₹2,40,000 HRA received and ₹2,40,000 rent paid in a metro city — the three rules give ₹2,40,000, ₹1,80,000 and ₹3,00,000. The least is ₹1,80,000, so your exempt HRA is ₹1,80,000 and the taxable HRA is ₹60,000. Switch to non-metro and the third rule drops to ₹2,40,000 (40% of basic), so the exempt amount stays at ₹1,80,000. Raise the rent to ₹4,00,000 and the exemption grows to the ₹2,40,000 cap set by your actual HRA.
Common use cases
- Reduce taxable salary: maximise your HRA exemption by tracking rent paid and receipts.
- Salary structuring: decide how much of your pay should come as HRA when negotiating an offer.
- Old vs new regime: check the benefit before choosing the old or new tax regime.
- Verify your employer's calculation: confirm the exemption shown in your Form 16.
Pro tips
- You must pay rent: you cannot claim HRA exemption unless you live in rented accommodation.
- Keep receipts and a rent agreement: they are needed to substantiate your claim, and a landlord's PAN is required if annual rent exceeds ₹1 lakh.
- Metro vs non-metro matters: the 50% vs 40% ceiling can significantly change the exemption.
- The 10% rule limits high rents: rent minus 10% of basic is often the binding constraint, so a higher basic salary helps.
FAQ
What is HRA exemption in India?
HRA exemption is the part of the House Rent Allowance you receive that is not taxed. Under Section 10(13A) and Rule 2A, the exempt amount is the least of three rules: actual HRA received, rent paid minus 10% of basic salary, and 50% (metro) or 40% (non-metro) of your basic salary.
What are the three rules for HRA exemption?
The exempt HRA is the lowest of: (1) actual HRA received, (2) rent paid minus 10% of basic salary and DA, and (3) 50% of basic salary and DA for metro cities or 40% for non-metro cities.
Which cities count as metro for HRA?
Metro cities are Delhi, Mumbai, Kolkata and Chennai, where the exemption is capped at 50% of basic salary. All other cities use the 40% non-metro ceiling.
What happens if I don't pay rent?
If you do not pay rent you cannot claim HRA exemption. You can only claim this benefit if you actually occupy rented accommodation and pay rent to your landlord.
Do I need to declare rent paid to claim HRA?
Yes. You must provide your employer's declaration and usually a rent receipt. If annual rent exceeds ₹1 lakh, you also need the landlord's PAN.
Is HRA exemption available under the new tax regime?
No. HRA exemption under Section 10(13A) is not available under the concessional new regime of Section 115BAC; you can only claim it under the old tax regime.
How is taxable HRA computed?
Taxable HRA = actual HRA received minus the exempt HRA. The exempt amount is the least of the three rules, and the remainder is added to your taxable salary.
Is this HRA calculator free?
Yes. It runs entirely in your browser and no data is uploaded anywhere.
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