HRA exemption calculator
Enter your monthly basic, HRA and rent to see exactly how much of your house rent allowance is tax-free under the three-limb rule. Everything runs in your browser — no signup, no upload.
HRA exemption is available only in the old tax regime. Under the new regime, HRA is fully taxable.
Frequently asked questions
How is HRA exemption calculated?
The exempt portion of HRA is the least of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary + dearness allowance, and (3) 50% of basic + DA if you live in a metro city, or 40% if non-metro. Whatever remains of your HRA after subtracting the exempt amount is taxable.
Which cities count as metro for HRA?
Only four cities qualify as metros for HRA purposes: Delhi, Mumbai, Kolkata and Chennai. Everywhere else — including Bengaluru, Hyderabad, Pune, Gurugram and Noida — is treated as non-metro, so the 40% limit applies.
Do I need rent receipts to claim HRA?
Yes, employers typically ask for rent receipts as proof before allowing HRA exemption in TDS. If your annual rent exceeds ₹1,00,000, you must also provide your landlord's PAN. Keep receipts and, ideally, pay rent through bank transfer so there is a clear trail.
Can I claim HRA if I live with my parents?
Yes, provided you genuinely pay rent to them. Pay by bank transfer, get rent receipts, and your parents must declare the rent as income in their tax returns. A paper-only arrangement with no actual payment can be rejected in scrutiny.
Is HRA exemption available in the new tax regime?
No. HRA exemption under Section 10(13A) is available only in the old tax regime. If you opt for the new regime, the entire HRA you receive is taxable as salary.
What if my salary has no HRA component but I pay rent?
You can claim a deduction under Section 80GG (old regime only): the least of ₹5,000 per month, 25% of total income, or rent paid minus 10% of total income. You must not receive HRA and must not own a house in the city where you live.