HRA Exemption Calculator
Find out how much of your House Rent Allowance is tax-exempt under Section 10(13A).
Delhi, Mumbai, Kolkata, Chennai (50% vs 40%)
Tax-Exempt HRA (per year)
₹1,56,000
₹13,000 per month
Exemption is the least of these three (monthly):
How the HRA Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
House Rent Allowance (HRA) is partly tax-exempt under Section 10(13A) if you actually pay rent for accommodation you occupy but do not own. This calculator finds your exempt and taxable HRA from your basic salary (basic + DA), the HRA you receive, the rent you pay and whether you live in a metro city.
The exemption is the LEAST of three amounts, so the calculator computes all three and picks the smallest. Crucially, HRA exemption is available only under the OLD tax regime — under the new regime, HRA is fully taxable, so this benefit is one of the main reasons some people still choose the old regime.
HRA exemption = least of these three
1) Actual HRA received · 2) Rent paid − 10% of salary · 3) 50% of salary (metro) or 40% (non-metro)
Salary = basic + DA. Metro = Delhi, Mumbai, Kolkata, Chennai. Old regime only.
Metro vs non-metro, and what counts as salary
For HRA, only Delhi, Mumbai, Kolkata and Chennai count as metros, giving a 50% cap; every other city, including Bengaluru, Hyderabad and Pune, uses the 40% cap. This single difference can meaningfully change your exemption at the same salary and rent.
The word salary here means basic pay plus dearness allowance only — not gross, not CTC, and not any special allowances. Using the wrong salary base is the most common reason people miscalculate their exemption.
Documentation and the new-regime catch
- Employers require rent receipts to grant HRA exemption in your payroll.
- If your annual rent exceeds ₹1 lakh, you must provide the landlord's PAN.
- You cannot claim HRA for a house you own and live in — rent must genuinely be paid.
- HRA exemption does not exist under the new tax regime; if you are on the new regime, entering these figures will show the full HRA as taxable.
| City type | Cap on salary % | Third-limit amount |
|---|---|---|
| Metro (Delhi, Mumbai, Kolkata, Chennai) | 50% | ₹25,000/month |
| Non-metro (all other cities) | 40% | ₹20,000/month |
Metro worker in Mumbai
Basic + DA ₹50,000/month, HRA received ₹20,000/month, rent paid ₹25,000/month. The three amounts: (1) actual HRA ₹20,000; (2) rent − 10% of salary = ₹25,000 − ₹5,000 = ₹20,000; (3) 50% of salary = ₹25,000. The least is ₹20,000/month, so ₹20,000 is exempt and none of the HRA is taxable here.
Non-metro worker with modest rent
Basic + DA ₹40,000/month, HRA received ₹16,000/month, rent paid ₹12,000/month, non-metro. The three: (1) ₹16,000; (2) ₹12,000 − ₹4,000 = ₹8,000; (3) 40% of ₹40,000 = ₹16,000. The least is ₹8,000, so only ₹8,000 is exempt and ₹8,000 of the HRA is taxable.
Common mistakes to avoid
- Using gross salary or CTC instead of basic + DA when computing the three amounts.
- Treating your city as a metro when only Delhi, Mumbai, Kolkata and Chennai qualify.
- Claiming HRA exemption under the new regime, where it is not allowed.
- Forgetting the landlord's PAN when annual rent crosses ₹1 lakh, which can lead to the claim being disallowed.
- Trying to claim HRA while living rent-free or in your own home.
Frequently asked questions
How is HRA exemption calculated?+
It is the least of three amounts: actual HRA received; rent paid minus 10% of salary (basic + DA); and 50% of salary for metro cities or 40% for non-metro. This calculator computes all three and picks the smallest as your exempt amount.
Which cities count as metro for HRA?+
Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% cap. All other cities, including Bengaluru, Hyderabad and Pune, use the 40% cap.
Can I claim HRA if I live in my own house?+
No. HRA exemption requires you to actually pay rent for accommodation you occupy and do not own.
Is HRA exemption available in the new tax regime?+
No. The Section 10(13A) HRA exemption is available only under the old tax regime. Under the new regime, HRA is fully taxable.
Which salary is used in the HRA calculation?+
Only basic salary plus dearness allowance (DA) — not gross salary, CTC or special allowances.
Do I need rent receipts or a landlord's PAN?+
Employers usually require rent receipts, and if your annual rent exceeds ₹1 lakh, the landlord's PAN is needed to claim the exemption.
Is this exemption figure exact?+
It is accurate for the standard Section 10(13A) formula, but edge cases and documentation requirements can affect the final allowed amount. Confirm with your employer or a tax professional before filing.