HRA Exemption Calculator
Maximise your HRA tax exemption under Section 10(13A)
Compute the tax-exempt portion of your House Rent Allowance. Works for metro and non-metro cities, old regime.
Maximize HRA + 80GG together.
We rebuild your salary structure so you claim the maximum exemption your employer missed. Free review.
What is a HRA Exemption Calculator?
House Rent Allowance (HRA) is a component of most salary structures in India. If you live in a rented home and receive HRA, a part of it is exempt from income tax under Section 10(13A) of the Income Tax Act. The exempt portion is the lowest of three numbers — and that's where most employees leave money on the table.
The three numbers are: (1) the actual HRA received, (2) 50% of basic salary for metro cities or 40% for non-metros, and (3) rent paid minus 10% of basic salary. Whichever is smallest becomes your tax-free HRA. Anything above that is fully taxable.
HRA exemption is available only under the Old Regime. The New Regime removes it entirely. Use this calculator before picking your regime for FY 2026-27 — if your HRA exemption is substantial, the Old Regime may still win.
Why use this HRA Exemption Calculator
Built for Indians, by Indians. Every number, every formula, every slab — tuned to FY 2026-27 reality.
All three limbs
Computes actual HRA, 50%/40% of basic, and rent minus 10% basic — shows which one wins.
Metro toggle
One-click switch between metro (50%) and non-metro (40%) cities.
Taxable split
Instantly shows exempt vs taxable HRA, so you know what to declare to payroll.
100% private
Runs in-browser. Your salary and rent never leave your device.
Using the HRA Exemption Calculator in 4 steps
No onboarding, no signup. Answer three fields and the numbers update live.
Enter annual basic salary
Use basic salary only (not CTC). Dearness allowance counts if it's part of retirement benefits.
Enter HRA received
The actual House Rent Allowance received annually, straight from your salary slip or Form 16.
Enter rent paid
Total annual rent paid. Rent paid to parents qualifies if they declare it as income.
Pick city type
Metro (Delhi, Mumbai, Kolkata, Chennai) = 50% of basic. All others = 40%. See the exempt amount instantly.
Tips to get the most out of it
Collect rent receipts every month — you'll need them if rent exceeds ₹1 lakh/year. PAN of landlord is mandatory too.
Pay rent via bank transfer, not cash, to create a paper trail for future scrutiny.
If you own a home in the same city and also claim HRA, expect notice. The tax department cross-references.
Rent paid to parents is allowed, but they must report it as income and you need a genuine rent agreement.
Under the New Regime, HRA exemption is gone. If your HRA saves more than ~₹1.5 lakh in tax, the Old Regime may still win.
Real-world scenarios
How Indians actually use this calculator — concrete inputs, concrete outcomes.
Metro, ₹6L basic, ₹2.4L HRA, ₹3L rent
Three limbs: HRA ₹2.4L, 50% basic ₹3L, rent − 10% basic ₹2.4L. Exempt = ₹2.4L. No taxable HRA.
Non-metro, ₹6L basic, ₹2L HRA, ₹1.8L rent
Three limbs: HRA ₹2L, 40% basic ₹2.4L, rent − 10% basic ₹1.2L. Exempt = ₹1.2L. Taxable HRA = ₹80K.
Metro, ₹12L basic, ₹4L HRA, ₹2.4L rent
Three limbs: HRA ₹4L, 50% basic ₹6L, rent − 10% basic ₹1.2L. Exempt = ₹1.2L. Taxable HRA = ₹2.8L.
Frequently Asked Questions
Still have a question? Our team replies within a business day.
HRA exemption = minimum of three amounts: (1) actual HRA received, (2) 50% of basic if you live in a metro (40% for non-metro), and (3) rent paid minus 10% of basic. The smallest of these three is tax-exempt; the rest is taxable.
Only four cities qualify as metro for HRA purposes — Delhi, Mumbai, Kolkata, and Chennai. Bangalore, Hyderabad, Pune, Ahmedabad and others are treated as non-metro (40%). This is historical; the definition may be revised in future budgets.
Yes — if you genuinely pay rent to your parents and they treat it as income. Execute a rent agreement, transfer rent via bank, and keep PAN of the parent on record.
No. The New Regime removes HRA exemption along with most other deductions. If your HRA exemption is substantial, compare both regimes using our income tax calculator before filing.
Yes, to your employer for TDS. If annual rent exceeds ₹1 lakh, you must provide the landlord's PAN as well. For self-filing (non-salaried), keep receipts for 6+ years in case of scrutiny.
You can still claim up to ₹60,000/year under Section 80GG. Not as generous as HRA, but useful for self-employed or employees without an HRA component.
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