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HRA exemption calculator

House Rent Allowance is taxable — except the exempt portion under Section 10(13A), which depends on your rent, basic salary, and city. The rule is 'least of three', and this platform applies it exactly inside the full tax computation.

Apply HRA to my salary

What it means

The exempt HRA is the minimum of: (1) actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic in a metro city or 40% elsewhere. Only the old regime allows this exemption.

The formula

Exempt HRA = min(HRA received, Rent − 10% × Basic, 50%|40% × Basic)

All three limbs are computed on the same period. If you pay no rent, limb two is negative and the exemption is zero. Metro means Delhi, Mumbai, Kolkata, or Chennai for this rule.

Worked example

  • Basic ₹8,00,000, HRA ₹4,00,000, rent ₹3,00,000 in a metro.
  • Limb 1: ₹4,00,000 · Limb 2: ₹3,00,000 − ₹80,000 = ₹2,20,000 · Limb 3: ₹4,00,000.
  • Exempt HRA = ₹2,20,000; the rest of the HRA is taxable.

How to use it

  1. 1Enter rent on the calculator. Annual rent actually paid, with receipts.
  2. 2Switch to the old regime. The exemption exists only there.
  3. 3Check the optimizer. It computes the exact rent at which your exemption maxes out — useful when negotiating rent or structure.

Frequently asked questions

Can I claim HRA in the new regime?

No. Section 10(13A) exemption is available only under the old regime.

Do I need my landlord's PAN?

If annual rent exceeds ₹1,00,000, yes — the landlord's PAN must be reported to your employer for the exemption.

I live in my own house — any HRA benefit?

No exemption without rent actually paid. Consider Section 24(b) home-loan interest instead, which the tax optimizer also evaluates.

Related tools & guides

Calculations on this site are based on official government provisions and should be verified against the latest government publications (incometax.gov.in).