HRA exemption calculator
Find out how much of your house rent allowance is tax-free. Enter annual figures for basic salary, HRA received, and rent paid.
How the exemption is decided
The tax-free HRA is the smallest of these three:
Whichever is lowest becomes your exemption; the rest of the HRA is taxable. This benefit is available under the old tax regime only.
FAQs about HRA exemption
How is HRA exemption calculated?
The exempt amount is the least of three figures: the HRA you actually received, your rent paid minus 10% of basic salary, and 50% of basic for metro cities (40% for non-metro).
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata, and Chennai are treated as metro cities, where the limit is 50% of basic. Every other city uses the 40% limit.
What counts as salary for HRA?
Salary here means basic pay plus dearness allowance (if it forms part of retirement benefits). It does not include other allowances or bonuses.
Can I claim HRA if I live with my parents?
Yes, if you genuinely pay them rent and they declare it as income. Keep rent receipts and ideally a simple rent agreement as proof.
What if I do not receive HRA?
If HRA is not part of your salary, you cannot claim this exemption, but you may be able to claim a separate deduction for rent under Section 80GG.
Does HRA exemption apply under the new tax regime?
No. The HRA exemption is available only under the old tax regime. If you opt for the new regime, this exemption does not apply.