HRA Exemption Calculator (India)
Work out how much of your House Rent Allowance is exempt from income tax using the least-of-three rule. Enter annual figures for salary, HRA received and rent paid.
House Rent Allowance is a common part of Indian salary packages, and part of it can be exempt from income tax if you pay rent. The exempt amount isn't simply the HRA you receive — it's the lowest of three calculations set out in Section 10(13A). This calculator applies all three and returns the exempt figure and the taxable balance, so you know how much of your HRA actually reduces your tax.
How HRA exemption is calculated
The exemption is the least of three amounts: the HRA you actually receive, your rent minus 10% of salary, and 50% of salary for metro cities or 40% for non-metro. Salary here means basic pay plus dearness allowance.
1) Actual HRA received
2) Rent paid − 10% of (basic + DA)
3) 50% of (basic + DA) if metro, else 40%
| The three amounts | Example |
|---|---|
| Actual HRA received | ₹3,00,000 |
| Rent − 10% of salary | ₹1,80,000 |
| 50% of salary (metro) | ₹3,00,000 |
| Exempt = least of these | ₹1,80,000 |
Worked example
Basic + DA ₹6,00,000, HRA ₹3,00,000, rent ₹2,40,000, metro city:
| Rent − 10% salary = 2,40,000 − 60,000 | ₹1,80,000 |
| 50% of salary | ₹3,00,000 |
| Exempt (least) | ₹1,80,000 |
Points to remember
The HRA exemption is available only if you opt for the old tax regime and actually pay rent; it can't be claimed under the new regime. If your annual rent exceeds ₹1 lakh, you must report the landlord's PAN. You can claim HRA even while paying a home loan in some situations, and salaried people living in their own home get no exemption. Because rules and regimes change, confirm the current position with a tax adviser or the Income Tax Department before filing.