HRA Exemption Calculator

Dynamic HRA Exemption Calculator

HRA Exemption Calculator Live

Inputs (Monthly)

Use this if you paid rent for fewer than 12 months.
Annual Breakdown
Total HRA Received₹0
Exempt HRA (Tax Free)₹0
Taxable HRA₹0
Monthly Exemption: ₹0
Calculation Logic (Monthly)
Salary for HRA = Basic + DA = ₹0

Exemption is the lowest of these three:

Metro (50%) 12 Months Rent: 0
How it works: The Income Tax Act exempts the least of: 1) Actual HRA, 2) Rent paid minus 10% of salary, or 3) 50% of salary (Metro) / 40% (Non-Metro). Metro cities defined as Delhi, Mumbai, Kolkata, and Chennai.

HRA Exemption Guide

How HRA Exemption Works

HRA (House Rent Allowance) exemption is calculated under Section 10(13A). The exempt amount is the lowest of the following three conditions:

Actual HRA Received from Employer
Rent – 10% Salary Excess Rent Paid
Salary Limit 50% (Metro) or 40% (Non-Metro)
Salary = Basic + DA
Example Calculation

Consider a person living in Mumbai (Metro):

Basic + DA
₹50,000
Rent Paid
₹20,000
HRA Recd
₹15,000
10% Salary
₹5,000
Exempt Amount ₹ 15,000
(In this case, Actual HRA was the lowest value)
Benefits & Use Cases
Tax Optimization

Calculate exactly how much rent you need to pay to fully claim your HRA component as tax-free.

Rent Planning

Understand the tax impact before negotiating rent with your landlord or deciding to move.

Regime Comparison

HRA is only available in the Old Regime. Use this to check if Old Regime saves you more tax than New Regime.

Frequently Asked Questions
Q1: Who can claim HRA exemption?

Salaried individuals who receive HRA as part of their salary structure and live in rented accommodation can claim this exemption.

Q2: Can I claim HRA if I live with parents?

Yes, if you actually pay rent to them via bank transfer and they declare it as “Income from House Property” in their IT returns.

Q3: Is HRA available in the New Tax Regime?

No. HRA exemption is available only if you opt for the Old Tax Regime. The New Regime offers lower rates but fewer deductions.

Q4: Do I need landlord’s PAN?

Yes, if the annual rent payment exceeds ₹1,00,000, you must provide your landlord’s PAN to your employer.

Authority Sources: Income Tax IndiaClearTax Guide