HRA Exemption Calculator
Find out how much of your House Rent Allowance (HRA) is tax-free. All calculated in your browser.
For information only, not tax advice. The tax-free amount is the lowest of three limits and depends on your salary and rent. Check with a chartered accountant for your case. Your inputs never leave your device.
Work out how much of your House Rent Allowance (HRA) is tax-free. Useful for salaried employees who pay rent and want to plan their tax under the Old Regime.
How to use
- Enter your annual basic salary (plus DA if it counts toward retirement benefits).
- Enter the HRA you receive and the total rent you pay in the year.
- Pick metro or non-metro, then calculate to see your exempt and taxable HRA.
Frequently asked questions
How is HRA exemption calculated?
The exemption is the least of three amounts: the actual HRA received, rent paid minus 10% of basic salary, and 50% of basic for metro cities (40% for non-metro). This tool computes all three and takes the lowest.
Which cities count as metro for HRA?
For HRA purposes, the metro cities are Delhi, Mumbai, Kolkata and Chennai, which qualify for the 50% rate. Everywhere else uses 40%.
Can I claim HRA under the New Tax Regime?
No, the HRA exemption is only available under the Old Regime. If you opt for the New Regime you cannot claim it, which is one factor our Income Tax Calculator weighs when comparing the two.