Tax Tools

HRA Exemption Calculator

House Rent Allowance is partly tax-exempt under Section 10(13A). The exempt amount is the lowest of three statutory limits — this calculator applies all three and tells you which one bites.

Salary & Rent Details

Enter monthly figures. We'll compute the annual HRA exemption.

₹50,000.00 per month

₹5 K₹5 L

₹25,000.00 per month

₹0₹3 L

₹20,000.00 per month

₹0₹3 L

HRA Exempt (Annual)

₹1,80,000

Deductible from taxable income

Taxable HRA (Annual)

₹1,20,000

HRA received minus exempt portion

The three conditions

HRA exemption is the lowest of these three values. The applied one is highlighted in teal.

  • 1Actual HRA received from employer
    ₹3,00,000
  • 2Rent paid minus 10% of basic salary
    ₹1,80,000
  • 350% of basic salary (metro)
    ₹3,00,000

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How HRA exemption works

If you live in rented accommodation and your employer pays you a House Rent Allowance, part of that HRA is exempt from income tax under Section 10(13A) read with Rule 2A. The exemption only applies under the old tax regime — choose the old regime in your tax declaration if HRA is a significant chunk of your CTC. Under the new regime, the entire HRA is fully taxable.

The exempt portion is the lowestof three amounts: the actual HRA your employer pays, rent paid minus 10% of basic salary, and 50% of basic salary if you live in a metro (Delhi, Mumbai, Kolkata, Chennai) or 40% if you live anywhere else. The smallest of those three caps your exemption — most salaried renters find the “rent minus 10% of basic” line is what limits them, which is why claiming HRA always requires actual rent receipts, not a notional figure.

To claim HRA you need rent receipts (or a rent agreement), and if your annual rent exceeds ₹1,00,000 you must also report your landlord's PAN to your employer. Paying rent to a parent is allowed and is a common tax-planning move — provided the parent owns the property, you have a genuine rent agreement, and the parent declares the rent as income on their own return. Rent paid to a spouse, by contrast, is not accepted by tax authorities. Salaried employees who don't receive HRA can still claim a deduction for rent under Section 80GG, though the limits are tighter.