HRA Exemption
Calculate your tax-exempt House Rent Allowance based on income and rent paid.
Basic salary plus dearness allowance for the year.
House rent allowance from your payslip, for the year.
Rent above ₹1 lakh a year needs the landlord's PAN.
Metro means Delhi, Mumbai, Kolkata or Chennai for HRA rules.
Quick examples
₹60,000 of your HRA stays taxable.
What each result means
HRA exemption
What it is: The lowest of the three limits.
Your value: ₹1,80,000
Not taxed.
Taxable HRA
What it is: HRA received minus exemption.
Your value: ₹60,000
Added to taxable salary.
Rent − 10% of basic
What it is: Second limit.
Your value: ₹1,80,000
Often the lowest one.
50% / 40% of basic
What it is: Third limit.
Your value: ₹3,00,000
Depends on city.
Year-by-year breakdown
| Limit | Amount (₹) |
|---|---|
| HRA received | ₹2,40,000 |
| Rent − 10% of basic | ₹1,80,000 |
| 50% of basic | ₹3,00,000 |
The exemption is the smallest of these three amounts.
What this calculator does
Works out how much of your house rent allowance is tax-free under Section 10(13A). Only available in the old regime.
What your result means
Paying more rent raises the exemption only until another limit becomes the smallest.
Formula
1. HRA exemption
Symbols
- HRA
- HRA received (₹)
- Rent
- Annual rent paid (₹)
- B
- Annual basic + DA (₹)
- k
- 50% metro, 40% non-metro
Why this formula works
Rule 2A of the Income-tax Rules.
Unit check
₹. ✓
Common mistakes
Claiming HRA in the new regime. Using gross salary instead of basic + DA.
Working for your numbers
- Rent − 10% basic = ₹2,40,000 − ₹60,000 = ₹1,80,000
- 50% × ₹6,00,000 = ₹3,00,000
- min(₹2,40,000, ₹1,80,000, ₹3,00,000) = ₹1,80,000
Frequently asked questions
Is HRA allowed in the new regime?
No. HRA exemption is available only in the old regime.
Which cities are metro?
For HRA, only Delhi, Mumbai, Kolkata and Chennai.
Is this the exact tax I will pay?
It is close for common cases, but it leaves out some special incomes, exemptions and set-offs. Confirm with Form 16, AIS and the Income Tax Department's own calculator before filing.
Does this calculator tell me what to do?
No. It is an educational estimate using published rules. It does not know your full situation. For a personal decision, speak to a qualified tax professional or a SEBI-registered investment adviser.
Symbols and assumptions
- B
- Basic + DA (₹)
- Same rent and salary all year.
- You do not own a house in the same city.
- Figures are in Indian Rupees (₹).
Sources and review
Reviewed 2026-10-05 · Next review 2026-12-31
- Income Tax Department — tax calculators and rules
- Central Board of Direct Taxes — Acts, rules and notifications
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How it works
Finds the least of: HRA received, rent minus 10% of salary, or 40/50% of basic.
The formula
min(HRA, Rent - 10% Basic, 50% Basic)- HRA
- House Rent Allowance
- DA
- Dearness Allowance
Worked example
₹50k basic, ₹20k HRA, ₹25k rent in a metro city.
Pro tips
- Ensure you have a valid rent agreement.
- Rent to parents can also be claimed if they declare it as income.
Common mistakes
- Thinking 100% of rent is exempt.
Go deeper
Concepts to explore
Related guides
Institutional grade calculations are illustrative and for educational wealth architecture. Results do not constitute investment advice.