Our HRA Exemption Calculator works out exactly how much of your House Rent Allowance is tax-exempt under Section 10(13A) of the Income Tax Act — enter your basic salary, HRA received, rent paid and city type.
HRA Exemption Calculator
HRA Exemption Formula
The exempt HRA amount under Section 10(13A) is the lowest of these three:
- Actual HRA received from employer
- Rent paid − 10% of Basic Salary + DA
- 50% of Basic Salary + DA (metro cities) or 40% (non-metro cities)
Whatever amount is left after exemption gets added back to your taxable salary.
Which Cities Count as Metro for HRA?
For HRA exemption purposes, only Delhi, Mumbai, Kolkata and Chennai are classified as metro cities (eligible for the 50% rule). Every other city in India — including Bangalore, Hyderabad, Pune and Ahmedabad — uses the 40% non-metro rate.
Important HRA Rules
- You must actually be paying rent — HRA exemption isn’t available if you live in a self-owned house with no rent payment.
- Rent receipts/agreement required for claims, and PAN of the landlord is mandatory if annual rent exceeds ₹1,00,000.
- Only available under the old tax regime — the new tax regime (default from FY 2023-24) does not allow HRA exemption.
- Paying rent to parents is allowed if it’s genuine (bank transfer, receipts) and they declare it as rental income.
FAQs
Can I claim HRA exemption under the new tax regime?
No. HRA exemption under Section 10(13A) is only available if you opt for the old tax regime. The new regime doesn’t allow this deduction.
What if my rent is less than 10% of my basic salary?
Then your HRA exemption could be zero or very low, since “Rent − 10% of salary” would be negative or minimal — the calculator floors this at zero.
Can I claim HRA exemption if I live with my parents and pay them rent?
Yes, as long as the rent payment is genuine and documented (bank transfers, rent receipts, rental agreement) and your parents declare it as rental income on their own tax return.
Is HRA exemption different from the HRA deduction for self-employed people?
Yes — self-employed individuals and salaried people without HRA in their salary structure can claim rent paid under Section 80GG instead, which has different limits.