HRA Exemption Calculator

The House Rent Allowance (HRA) exemption is the least of three amounts: the actual HRA received, rent paid minus 10% of salary, and 50% of salary for metro cities (40% for non-metro). Enter your monthly figures below (salary means basic + DA). The HRA exemption applies under the old tax regime.

Monthly Basic + DA (₹) Monthly HRA received (₹) Monthly rent paid (₹) City

1. Actual HRA received—

2. Rent − 10% of salary—

3. 50%/40% of salary—

HRA exempt (monthly)—

HRA exempt (yearly)—

Taxable HRA (monthly)—

How HRA exemption is calculated

The exemption under Section 10(13A) is the least of these three:

Actual HRA received from your employer.
Rent paid − 10% of salary (basic + DA).
50% of salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% otherwise.

Fact box. HRA exemption = the least of (a) actual HRA, (b) rent paid minus 10% of salary, and (c) 50% (metro) or 40% (non-metro) of salary. The balance of HRA is taxable.

Worked example

Basic + DA ₹30,000, HRA ₹15,000, rent ₹14,000, metro: (1) ₹15,000; (2) 14,000 − 3,000 = ₹11,000; (3) 50% × 30,000 = ₹15,000. Least = ₹11,000 exempt per month; ₹4,000 of HRA is taxable.

Frequently asked questions

How is HRA exemption calculated? It is the least of the actual HRA received, rent paid minus 10% of salary, and 50% (metro) or 40% (non-metro) of salary.

Is HRA exemption available in the new tax regime? No — the HRA exemption is available only under the old regime. The new regime does not allow it.

What counts as salary for HRA? Basic salary plus dearness allowance (and commission based on a fixed percentage of turnover, if applicable).

Sources

Income Tax Act, Section 10(13A) and Rule 2A — incometax.gov.in.

General information, not professional advice. Confirm your eligibility with a qualified professional. See our Disclaimer.