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House Rent Allowance (HRA) Calculator

House Rent Allowance (HRA) is a common component of a salaried individual's compensation. If you live in a rented house, you can claim tax exemption on HRA under Section 10(13A) of the Income Tax Act. Use this calculator to find out exactly how much of your HRA is exempt and how much is taxable.

Annual Salary & Rent Details
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Delhi, Mumbai, Kolkata, Chennai

Exempt HRA

₹1,80,000

Tax-free amount

Taxable HRA

₹60,000

Added to taxable income

Exemption Rules Breakdown

The HRA exemption is the lowest of the following three amounts:

Rule 1Actual HRA received
₹2,40,000
Rule 250% of Basic Salary
₹3,00,000
Rule 3Actual Rent minus 10% of Basic
₹1,80,000

How is HRA Exemption Calculated?

The HRA exemption is calculated as the minimum of the following three conditions: 1. Actual HRA received from your employer. 2. 50% of Basic Salary for Metro cities (Mumbai, Delhi, Kolkata, Chennai) OR 40% for Non-Metro cities. 3. Actual rent paid minus 10% of Basic Salary. The lowest of these three amounts is completely exempt from income tax, and the remaining HRA is added to your taxable income.

Important Rules for Claiming HRA

If your annual rent exceeds ₹1,00,000, you must report your landlord's PAN to your employer to claim the exemption. Furthermore, if you own a house in the same city where you work, you generally cannot claim HRA exemption unless you can prove you live in a rented accommodation due to valid reasons.

Frequently Asked Questions

What is considered as a Metro city for HRA?

For the purpose of HRA calculation under the Income Tax Act, only four cities are considered Metros: Delhi, Mumbai, Kolkata, and Chennai. If you live in any of these four cities, you are eligible for 50% of Basic Salary as an exemption cap. For all other cities, including Bangalore, Hyderabad, and Pune, the cap is 40%.

Can I claim HRA if I live with my parents?

Yes, you can claim HRA exemption if you live with your parents, provided you pay rent to them and they show this rental income in their income tax returns. Your parents must be the legal owners of the house.

Can I claim both Home Loan benefits and HRA?

Yes, if you own a house and are paying a home loan EMI, but you are living in a rented house in a different city (or even the same city, for genuine reasons like distance to workplace), you can claim both HRA exemption and Home Loan interest/principal tax benefits.

Is HRA exemption available in the New Tax Regime?

No. The HRA tax exemption under Section 10(13A) is only available if you opt for the Old Tax Regime. If you choose the New Tax Regime, your entire HRA becomes fully taxable.