HRA Exemption Calculator

Work out how much of your House Rent Allowance is tax-exempt under Section 10(13A). Enter your salary, HRA, and rent to see the exempt and taxable amounts, with the complete three-way breakdown the law prescribes.

On an annual HRA of ₹3,00,000 with ₹2.4 L of rent in a metro city, ₹1.8 L of your HRA is tax-exempt under Section 10(13A) and the remaining ₹1.2 L is taxable.

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₹50K ₹1Cr
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₹0 ₹50L
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₹0 ₹50L
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How HRA exemption works

House Rent Allowance is a salary component meant to cover rented accommodation. Under Section 10(13A) of the Income Tax Act, a part of it escapes tax — but only the part genuinely linked to rent you pay. The law caps the exemption at the lowest of three tests, ensuring the benefit stays proportionate to your actual rent and salary.

The three-way test

  • Actual HRA received from your employer during the year.
  • Rent paid − 10% of basic salary, recognising that some housing cost is your own.
  • 50% of basic for metro residents, or 40% for non-metro.

The smallest of these three is your exempt HRA; whatever HRA remains is added to taxable salary.

Important conditions

  • HRA exemption is available only under the old tax regime, not the new regime.
  • You must actually pay rent — owning the home you live in disqualifies the claim.
  • Quote your landlord’s PAN to your employer if annual rent exceeds ₹1 lakh.
  • If you also have a home loan, you can claim HRA and the Section 24(b) interest deduction together under specific conditions.

Frequently asked questions

What is HRA exemption under Section 10(13A)?
House Rent Allowance exemption under Section 10(13A) lets salaried individuals reduce their taxable income by the portion of HRA used to pay rent. The exemption is available only under the old tax regime and only if you actually pay rent for accommodation you occupy. It is not available under the new regime.
How is the HRA exemption calculated?
The exempt HRA is the least of three amounts: (1) the actual HRA received from your employer, (2) the rent you pay minus 10% of your basic salary, and (3) 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% if you live elsewhere. The lowest of these three is exempt; the rest of your HRA is taxable.
Which cities count as metro for HRA?
For HRA purposes, only the four metros — Delhi, Mumbai, Kolkata, and Chennai — qualify for the 50% of basic limit. All other cities, including Bengaluru, Hyderabad, and Pune, are treated as non-metro with a 40% limit, regardless of their size or cost of living.
Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA on rent paid to parents who own the property, provided the arrangement is genuine — there should be an actual rent transfer, ideally via bank, and your parents must declare the rent as income in their return. You cannot claim HRA for rent paid to a spouse.
Do I need a landlord’s PAN to claim HRA?
If your annual rent exceeds ₹1 lakh (₹8,333 a month), you must report your landlord’s PAN to your employer to claim the HRA exemption. Keep rent receipts and the rent agreement as supporting evidence in case of scrutiny.
Can I claim both HRA and a home loan deduction together?
Yes. You can claim HRA on the rent you pay and, simultaneously, claim home loan interest under Section 24b and principal under 80C for a house you own — for example, if your owned home is in another city, is let out, or is genuinely too far to commute from. The two benefits operate independently, but the arrangement must be bona fide and not just a tax-saving paper exercise.
Can I claim HRA if I live in my own house?
No. The HRA exemption under Section 10(13A) is available only when you actually pay rent for accommodation you occupy. If you live in a house you own and pay no rent, the entire HRA component of your salary is fully taxable. You would instead look to claim home loan interest and principal deductions if applicable.
Is HRA exemption available under the new tax regime?
No. The HRA exemption is one of the deductions disallowed under the new tax regime. You can claim it only if you opt for the old regime. So when comparing the two regimes, a salaried person paying significant rent should weigh the HRA exemption they would forfeit by moving to the new regime.
What documents do I need to claim HRA?
You need rent receipts (typically monthly or quarterly), a rent agreement, and proof of payment such as bank transfers. If your annual rent crosses ₹1 lakh, your landlord’s PAN is mandatory; if the landlord has no PAN, a signed declaration is required. Paying rent by bank transfer rather than cash makes the claim far easier to defend during assessment.

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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.

Exempt HRA
₹1,80,000
Taxable HRA
₹1.2 L