HRA Exemption Calculator
Calculate the exempt portion of your House Rent Allowance based on your basic salary, HRA received, actual rent paid, and whether you live in a metro or non-metro city.
- 1Enter your basic salary and actual HRA received
- 2Enter the actual rent you pay
- 3Select whether you live in a metro or non-metro city
- 4Click Calculate to see your HRA exemption and taxable HRA amount
Who needs to claim an HRA exemption
If you receive House Rent Allowance and pay rent, part of that allowance can be excluded from your taxable salary. This page estimates how much, using the formula tax rules prescribe: the exemption is capped at whichever of the following is smallest.
- Actual HRA received from the employer.
- Rent paid less 10% of basic salary. If you pay little rent relative to salary, this figure shrinks or becomes zero.
- 50% of basic (metro) or 40% (non-metro). From 1 April 2026 the metro cities are Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.
Reading the result
The tool prints the exempt amount and the taxable HRA. If rent is lower than 10% of basic, the exemption is zero and the whole HRA is taxable. Raising the rent figure beyond the other two limits does not increase the exemption, since the smallest value controls.
Practical points
- Keep rent receipts or the rental agreement. Employers ask for proof, and you will need it if you claim at return filing.
- Paying rent to a parent is allowed if they actually receive it and declare it as income.
- You cannot claim HRA exemption without paying rent, but a separate deduction exists for people who receive no HRA.
- Employees who opt for the new tax regime generally lose this exemption.
To see the effect on pay after tax, try the CTC to take-home calculator.