Calculator
HRA Exemption Calculator
House Rent Allowance (HRA) is partly exempt from tax under Section 10(13A) for salaried people who pay rent — but only if you opt for the old tax regime. The exempt amount is the least of three figures: the actual HRA you receive, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% (non-metro). This calculator applies all three limits and shows both your exempt HRA and the taxable portion. Enter annual figures for basic salary plus DA, HRA received and rent paid, and pick whether you live in a metro city.
Annual basic pay plus dearness allowance (if part of retirement benefits).
Total HRA component in your salary for the year.
Total rent you actually paid during the year.
Metro cities allow 50% of basic; non-metro allows 40%.
HRA: exempt vs taxable
- Exempt₹1,80,00075%
- Taxable₹60,00025%
HRA exemption under Section 10(13A) is available only if you opt for the OLD tax regime; the new regime does not allow it. You must actually pay rent and keep rent receipts; if annual rent exceeds ₹1,00,000 you also need the landlord’s PAN. “Basic salary” here means basic pay plus DA (where DA forms part of retirement benefits). This is an estimate — confirm with your employer or a tax professional.
What your result means
- Your exemption is the least of three figures — actual HRA, rent minus 10% of basic, and 50%/40% of basic — so it is capped by whichever is smallest.
- HRA exemption is available only under the old regime; if you are on the new regime, this benefit does not apply.
- For annual rent above ₹1 lakh you must report the landlord’s PAN, and you should keep rent receipts and proof of payment.
How to use this calculator
- Enter your annual basic salary plus DA (the figure your HRA is benchmarked to).
- Enter the total HRA you received for the year from your salary slip.
- Enter the total rent you actually paid during the year.
- Select metro or non-metro depending on the city you rent in.
- Read the exempt HRA and the taxable HRA — and remember this only helps under the old regime.
The formula
Exempt HRA = least of three amounts: (a) actual HRA received; (b) rent paid − 10% of basic salary; (c) 50% of basic salary for metro cities, or 40% for non-metro. Taxable HRA = HRA received − exempt HRA.
Worked example
Annual basic + DA ₹6,00,000, HRA received ₹2,40,000, rent paid ₹2,40,000, living in a metro: (a) HRA received = ₹2,40,000; (b) rent − 10% of basic = 2,40,000 − 60,000 = ₹1,80,000; (c) 50% of basic = ₹3,00,000. The least is ₹1,80,000, so that much HRA is exempt and the remaining ₹60,000 (2,40,000 − 1,80,000) is added to your taxable salary under the old regime.
When to use it
- A salaried renter checking how much HRA escapes tax under the old regime.
- Comparing old versus new regime when you pay significant rent.
- Deciding how much rent to declare in your investment proof submission.
- Estimating taxable salary before your employer finalises TDS.