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HRA Exemption Calculator
Work out how much of your house rent allowance escapes tax. Enter your salary, HRA, rent and city type, then press Calculate to see the exempt and taxable portions.
Written by TopicDrill Editorial Team·Updated June 2026
The three exemption limits
Exemption is the smallest barAdvertisement
How the HRA exemption calculator works
House rent allowance is partly tax-free under Section 10(13A) when you actually pay rent. The exempt slice is not a fixed percentage; instead the law caps it at the smallest of three competing limits. This tool computes all three from your annual figures and picks the lowest, which is the amount you can leave out of your taxable income.
The three limits are the actual HRA you received, the rent you paid minus 10 percent of your salary, and a percentage of salary that depends on your city. The chart highlights the smallest bar so you can see at a glance which rule is limiting your exemption, and the rest of the HRA is added back as taxable.
A quick example
Imagine a metro employee with 6,00,000 rupees of basic pay plus DA, 2,40,000 rupees of HRA and 3,00,000 rupees of annual rent. The three limits are 2,40,000 actual HRA, 2,40,000 rent minus 10 percent of salary, and 3,00,000 being 50 percent of salary. The exemption is the least, 2,40,000 rupees, so the entire HRA is tax-free and nothing stays taxable here.
Things to keep in mind
Salary for this rule means basic pay plus dearness allowance, not your full package, and the exemption only exists under the old tax regime. For the official wording, see the Income Tax Department. Once you know your exempt HRA, estimate the rest of your pay with our gross to net salary calculator.
Frequently asked questions
How is HRA exemption calculated?
The exempt amount is the least of three figures: the actual HRA you received, the rent you paid minus 10 percent of your salary, and either 50 percent of salary if you live in a metro city or 40 percent if you do not. Salary here means basic pay plus dearness allowance.
Which cities count as metro for HRA?
For HRA purposes the metro cities are Delhi, Mumbai, Kolkata and Chennai, where the limit is 50 percent of salary. Every other city, including large ones like Bengaluru and Hyderabad, is treated as non-metro with a 40 percent limit.
Can I claim HRA exemption if I pay rent to my parents?
Yes, you can claim it if you genuinely pay rent to a parent who owns the home and reports that rent as income. Keep proof such as a rent agreement and bank transfers, since paying rent to yourself or to a co-owned home you live in is not allowed.
Does HRA exemption apply under the new tax regime?
No. The HRA exemption under Section 10(13A) is available only under the old tax regime. If you opt for the new concessional regime you give up this exemption, so compare both regimes before deciding which one lowers your overall tax.
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