HRA Exemption Calculator
Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A) of the Indian Income Tax Act. Save maximum tax.
About this calculator
This HRA exemption calculator updates the moment you change a number. Type your basic salary, the HRA you receive and the rent you pay, choose the type of city, and it shows the three Section 10(13A) tests, the exempt amount and the taxable HRA for the month and the year.
A green tick marks the rule that limits you. If it is the rent test, a higher rent would raise the exemption. If it is the actual HRA test, you are already getting the maximum your salary structure allows, and only a restructure with your employer will help.
How to use it
- Enter Basic Salary + DA per month.
- Enter HRA Received per month.
- Enter Actual Rent Paid per month.
- Choose Metro or Non-Metro.
- Read the results as they update.
How the exemption is determined
HRA exemption under Section 10(13A) is the lowest of three numbers: (1) the HRA you actually receive, (2) rent paid minus 10% of basic salary (plus DA), and (3) 50% of basic for metro cities or 40% for non-metro. The rule applies per month. A metro here means Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Whatever HRA is not exempt is added to your taxable income.
Worked example
Basic ₹50,000, HRA received ₹20,000, rent paid ₹18,000, metro city
| Actual HRA received | ₹20,000 a month |
| Rent paid − 10% of basic | ₹13,000 a month |
| 50% of basic (metro) | ₹25,000 a month |
| Exempt HRA (lowest) | ₹13,000 a month, ₹1,56,000 a year |
| Taxable HRA | ₹7,000 a month, ₹84,000 a year |
Rent is the limiting factor here. Paying ₹23,000 rent instead would lift the exemption to ₹18,000 a month, because the rent test would rise from ₹13,000 to ₹18,000.
Tips and common mistakes
- The exemption is available only in the old tax regime.
- Keep rent receipts and the landlord's PAN if the annual rent exceeds ₹1 lakh.
- Rent paid to a parent is allowed only if it is real, paid by bank transfer, and declared as income by the parent.
- Rent paid in a different city from where you work is still valid, but the metro test uses the city of your residence.
- If you do not receive HRA, Section 80GG gives a limited deduction for rent paid.
Frequently asked questions
How much HRA is tax-free?
The lowest of HRA received, rent minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic.
Is HRA part of CTC?
Yes, it is one of the components of your cost to company, and the exempt portion reduces your taxable salary.
Do I get the exemption in the new regime?
No, only in the old regime.
What proof does my employer need?
Rent receipts or a rent agreement, and the landlord's PAN when yearly rent exceeds ₹1 lakh.
What if I changed jobs mid-year?
Your new employer may not know the earlier HRA. You can claim any difference when you file your return.
Can I get HRA exemption and a home loan deduction together?
Yes, if you live on rent in one city and own a house elsewhere, under the old regime.