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HRA Calculator India (House Rent Allowance Exemption)

Use this HRA calculator to estimate your tax exemption under Section 10(13A) of the Income Tax Act. It helps salaried employees calculate how much HRA is exempt from tax based on salary, rent, and city type.

₹

Your annual basic salary as per pay slip

₹

Total HRA component received per year

₹

Actual rent paid for accommodation per year

Metro cities: Delhi, Mumbai, Kolkata, Chennai — 50% of basic salary applies.

HRA Exemption

₹1,30,000

per year — saves ~₹39,000 in tax (at 30% slab)

HRA Received₹2.0 L
Tax-Exempt₹1.3 L
Taxable HRA₹70,000

HRA breakdown

65% exempt35% taxable
iLimiting rule: Rent - 10% Basic

The Three HRA Rules

Exemption = minimum of all three. The lowest rule determines your exemption.

HRA Received
₹2.0 L
Rent - 10% of Basic
₹1.3 L
← Min
50% of Basic
₹2.5 L

Rule 1: Actual HRA received = ₹2,00,000

Rule 2: Rent paid (₹1,80,000) - 10% of basic (₹50,000) = ₹1,30,000

Rule 3: 50% of basic (₹5,00,000) = ₹2,50,000

Exemption = min(₹2.0 L, ₹1.3 L, ₹2.5 L) = ₹1,30,000

What this means for you

💰

₹1.3 L is tax-free

Out of ₹2.0 L HRA received, ₹1.3 L is exempt from tax. The remaining ₹70,000 is added to your taxable income.

🧮

Estimated tax saved: ₹39,000

At the 30% tax slab, your HRA exemption saves you approximately ₹39,000 in income tax per year.

💡

Higher rent could increase exemption

Your exemption is limited by the "Rent - 10% Basic" rule. If your rent increases, the exemption would increase too (up to the other limits).

Metro vs Non-Metro Comparison

Metro City (50%)

Selected
50% of Basic₹2,50,000
Exemption₹1,30,000
Taxable HRA₹70,000

Non-Metro City (40%)

40% of Basic₹2,00,000
Exemption₹1,30,000
Taxable HRA₹70,000

How HRA is Calculated

1

Actual HRA received

The HRA component paid by your employer as part of your salary. This is the maximum exemption possible.

2

Rent paid minus 10% of basic

Actual rent you pay minus 10% of your basic salary. You must actually be paying rent to claim HRA.

3

50% or 40% of basic salary

50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai). 40% for all other cities.

The exemption under Section 10(13A) is the minimum of all three rules above. This amount is deducted from your taxable income.

HRA and Tax Regime (Important)

HRA exemption is available only under the old tax regime. If you choose the new tax regime, you cannot claim HRA exemption — even if your employer pays HRA as part of your salary package. Before claiming HRA, confirm with your employer that you have opted for the old tax regime for the current financial year.

What to do next

Take Home Salary Calculator

Next

Calculate in-hand salary including HRA exemption.

Open Tool →

Income Tax Calculator

Next

Use your HRA exemption to reduce total tax liability.

Open Tool →

What is HRA and Why It Matters

House Rent Allowance (HRA) is a component of your salary that helps reduce your taxable income if you live in a rented house. When claimed correctly, HRA can significantly lower your income tax and increase your take-home salary.

Who Can Claim HRA Exemption

  • ✓Salaried employees who receive HRA as part of their salary.
  • ✓Individuals living in rented accommodation.
  • ✓Employees paying rent to a landlord, including parents (with proper documentation).

Important Rules for Claiming HRA

  • •You must actually pay rent to claim HRA exemption.
  • •Rent receipts or a rental agreement may be required by your employer or during assessment.
  • •If annual rent exceeds ₹1,00,000, your landlord's PAN must be submitted.
  • •You cannot claim HRA if you live in your own house.

Can You Pay Rent to Parents and Claim HRA?

Yes, you can claim HRA if you pay rent to your parents, provided there is a valid rental agreement and actual rent transactions via bank transfer. Your parents must declare this rent as income in their own tax filings. This is a completely legal and commonly used strategy.

Common Mistakes to Avoid While Claiming HRA

  • •Claiming HRA without actually paying rent.
  • •Not maintaining rent receipts or a rental agreement.
  • •Choosing the new tax regime — HRA exemption is not available under the new regime.
  • •Incorrectly calculating your exemption by not applying all three rules.

How HRA Helps You Save Tax

HRA reduces your taxable income, which directly lowers your income tax liability. The higher your eligible exemption, the more tax you save. Using an HRA calculator helps you estimate your exact exemption and plan your taxes more effectively — especially if you are deciding between the old and new regime.

Frequently Asked Questions

What is HRA exemption?

HRA exemption is the portion of House Rent Allowance that is not included in your taxable income. It is calculated as the minimum of three values: actual HRA received, rent paid minus 10% of basic, and 50% or 40% of basic depending on your city.

Is HRA available under the new tax regime?

No. HRA exemption is only available under the old tax regime. If you opt for the new regime, you cannot claim HRA exemption, even if your employer pays HRA.

What if my rent exceeds ₹1 lakh per year?

If your annual rent payments exceed ₹1,00,000, you must submit your landlord's PAN details to your employer when submitting rent proofs.

Can I claim both HRA and home loan benefits?

Yes, in certain situations — for example, if you own a house in one city but live on rent in another city for work. You can claim HRA for rent paid and home loan interest deduction for the owned property.

Related Tools

Income Tax Calculator →Take Home Salary Calculator →EMI Calculator →

Updated as per latest income tax rules (FY 2024–25 / AY 2025–26).

How it works

  1. 1

    Enter your basic salary, HRA received from employer, and actual rent paid.

  2. 2

    Specify whether you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or non-metro.

  3. 3

    The exemption is the minimum of three amounts: actual HRA, 50%/40% of basic, and rent paid minus 10% of basic.

Example calculation

Scenario: Basic ₹50,000/month, HRA ₹20,000, Rent ₹18,000, Metro

  • →Actual HRA = ₹20,000
  • →50% of Basic = ₹25,000
  • →Rent − 10% of Basic = ₹18,000 − ₹5,000 = ₹13,000
  • →Exemption = Min(20,000; 25,000; 13,000) = ₹13,000/month

Who benefits & use cases

  • ✓Reduce taxable income legally by claiming HRA exemption under Section 10(13A).
  • ✓Useful for salaried employees who pay rent and receive HRA from their employer.
  • ✓Accurately plan rent agreements to maximise the exemption.

Frequently asked questions

Can I claim HRA if I live with parents?

Yes, if you pay rent to your parents and they declare it as rental income. Keep rent receipts and a rental agreement as proof.

Is HRA exemption available in the new tax regime?

No. HRA exemption is only available under the old tax regime. Under the new regime, HRA is fully taxable.

What documents do I need for HRA claims?

Rent receipts, rental agreement, and landlord's PAN (if annual rent exceeds ₹1 lakh) are required.

Related tools

Income Tax Calculator→Take Home Salary Calculator→