Find how much of your House Rent Allowance is tax-free.
What is HRA exemption? House Rent Allowance (HRA) is part of many Indian salaries. Under the old income-tax regime, a portion of it is exempt from tax under Section 10(13A) — the rest is taxable. This calculator applies the standard formula to your numbers.
Exempt HRA (monthly)
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Taxable HRA (monthly)
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Exempt HRA (annual)
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Taxable HRA (annual)
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Binding limit
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Old-regime rules (Section 10(13A)). The new tax regime allows no HRA exemption — verify current rules before filing.
Tip: calculate first — your result is included when you share.
Enter your monthly basic salary, dearness allowance (if any), the HRA you actually receive, the rent you pay, and whether you live in a metro city. Press Calculate Exemption to see your monthly and annual exempt HRA, how much of it is taxable, and which of the three legal limits is binding your number.
The useful insight here: most people’s exemption is capped by the “rent minus 10% of salary” leg, not by the 50%/40% salary cap. That means your rent receipts are the main lever — but only up to the salary cap, beyond which extra rent buys you nothing.
Two caveats: this uses old-regime rules — under the new regime the exemption is zero — and tax rules do get revised, so treat this as a planning estimate, not tax advice. For rent above ₹1,00,000 a year you’ll also need your landlord’s PAN when claiming.
HRA exemption is the portion of your House Rent Allowance that is not taxed, under Section 10(13A) of the Indian Income-tax Act. It applies only under the old tax regime — the new regime does not allow it.
How is HRA exemption calculated?
It is the least of three amounts: (1) the actual HRA you receive, (2) rent paid minus 10% of (basic salary + DA), and (3) 50% of (basic + DA) in metro cities or 40% elsewhere. Whatever HRA remains after the exemption is taxable.
Which cities count as metro for HRA?
For the 50% limit, the metros are Delhi, Mumbai, Kolkata and Chennai. Everywhere else uses the 40% limit.
What if my rent is low compared to my salary?
Then the “rent minus 10% of salary” leg becomes the smallest and caps your exemption. Paying more rent raises the exemption — but only up to the 50%/40% salary cap, so there is a ceiling.
Does this apply under the new tax regime?
No. The new regime (Section 115BAC) offers lower slab rates but disallows HRA exemption, so this calculator only applies if you opt for the old regime. Tax rules change — verify the current slabs before filing.
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