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Calculate your HRA exemption using the least-of-three rule. Enter basic salary, HRA and rent to see exempt and taxable amounts for metro and non-metro cities.
Estimated HRA exemption
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HRA results are estimates for planning and should be checked against current official rules or professional advice where applicable.
Your payslip shows a house rent allowance, but only part of it may escape tax. The exempt portion depends on the rent you pay, your salary and the city you live in. This HRA calculator applies the Section 10(13A) rules and shows the exempt and taxable amounts for the year.
Your exemption is the lowest of these three figures:
Under the rules applied for FY 2025-26, the metros are Delhi, Mumbai, Kolkata and Chennai. Bengaluru, Hyderabad and Pune use the 40% limit. Proposals to widen the list have been discussed, so check for updates in later years.
Priya earns a basic salary of Rs 50,000 a month with no DA. Her HRA is Rs 25,000 a month and she pays Rs 22,000 in rent. Over the year, that is Rs 6,00,000 basic, Rs 3,00,000 HRA and Rs 2,64,000 rent.
| Rule | Calculation | Amount |
|---|---|---|
| Actual HRA received | 25,000 x 12 | Rs 3,00,000 |
| 50% of basic (metro) | 6,00,000 x 50% | Rs 3,00,000 |
| Rent minus 10% of basic | 2,64,000 - 60,000 | Rs 2,04,000 |
The lowest figure is Rs 2,04,000, so that is her exemption. The remaining Rs 96,000 of HRA is taxable. Had she lived in Jaipur, rule two would drop to Rs 2,40,000. Her answer would not change, because rent is the limiting factor here.
HRA exemption is available only under the old tax regime. If you opt for the new regime, your entire HRA becomes taxable. In return, the new regime offers lower slab rates and a Rs 75,000 standard deduction. It also gives a rebate up to Rs 12 lakh of taxable income.
So the real question is which regime leaves you better off. A large HRA exemption, combined with 80C investments and home loan interest, can tip the balance towards the old regime. Run the HRA calculator first, then compare both regimes using all your deductions.
The arithmetic is simple, but your employer and the tax department decide what proof is enough. Keep rent records for a few years after filing, in case a notice asks for them.
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Common HRA exemption is the least of eligible HRA, rent minus 10% of salary, and the applicable salary percentage.This describes the core logic used by the tool. Check any assumptions that may affect your result.
Use accurate inputs and keep units consistent.
Review the assumptions before using the result for a decision.
Compare important results with an independent or official source.
No. The HRA exemption needs you to pay rent for the home you live in. If you stay in a house you own, the full HRA received is taxable. You may claim home loan deductions instead under the old regime.
Not under the rules applied for FY 2025-26. Only Delhi, Mumbai, Kolkata and Chennai get the 50% limit. Bengaluru, Hyderabad and Pune use 40%, though widening the list has been proposed, so check the latest notification.
Employers often accept a simple declaration without receipts when monthly rent is up to Rs 3,000. Above that, receipts or a rent agreement are normally required. Even if nobody asks, keep proof in case the tax department questions your claim.
Yes, as long as your parents own the property and you transfer the rent to them. They must report this rent as income in their own tax return. A written agreement and bank transfers make the claim far stronger.
You cannot claim the HRA exemption without HRA in your salary. Under the old regime, Section 80GG may allow a deduction for rent paid instead. It carries a lower cap of Rs 5,000 a month plus a few other conditions.
It uses basic salary plus dearness allowance, where the DA counts towards retirement benefits. Commission fixed as a percentage of turnover is also included. Gross salary, special allowance and bonuses are not part of the HRA exemption calculation.
Yes. If your employer missed it, you can still claim the exemption while filing your return. This works only under the old regime. Keep rent receipts and the landlord's PAN ready, since your Form 16 will not reflect it.
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