Free HRA Calculator — Calculate House Rent Allowance Tax Exemption
Don't overpay income tax on HRA. Calculate the exact amount of House Rent Allowance exempt from income tax under Section 10(13A). Enter your salary, HRA received, and rent paid to see your tax exemption instantly.
HRA is one of the largest tax exemptions available to salaried employees. Getting it right saves thousands every year.
Section 10(13A) Exemption
Calculate the exact HRA exemption as per the Income Tax Act — minimum of three conditions tested automatically.
Metro vs Non-Metro
HRA exemption rules differ for metro cities (Mumbai, Delhi, Chennai, Kolkata) and non-metro cities — we handle both.
Tax Saving Estimate
See how much income tax you save through HRA exemption based on your tax bracket — a key tool for salary negotiation.
How to Use the HRA Calculator
Three inputs. Get your HRA exemption amount and tax saving in seconds.
1
Enter Basic Salary
Input your monthly basic salary — not CTC or gross salary. HRA exemption is calculated on basic salary, not total CTC.
2
Enter HRA Received & Rent Paid
Input monthly HRA amount mentioned in your salary slip and actual monthly rent paid to the landlord.
3
Select City Type
Choose metro (Delhi, Mumbai, Chennai, Kolkata) or non-metro. Metro cities get 50% of basic as HRA limit; non-metro gets 40%.
HRA Exemption Formula
The Income Tax Act uses the minimum of three amounts to determine your HRA exemption.
HRA Exemption Formula
Exempt HRA = Minimum of:
(1) Actual HRA received
(2) 50% of basic (metro) / 40% (non-metro)
(3) Rent paid minus 10% of basic salary
The Income Tax Department exempts the lowest of these three amounts. The taxable portion of HRA = HRA received − exempt HRA. You must have paid actual rent and should have rent receipts. HRA from employer above ₹1 lakh/year requires landlord's PAN.
Frequently Asked Questions
Everything you need to know about HRA exemption and how to maximise your tax savings.
HRA (House Rent Allowance) is a salary component provided by employers to employees living in rented accommodation. Under Section 10(13A) of the Income Tax Act, a portion of HRA is exempt from income tax. To claim HRA exemption: you must be a salaried employee (self-employed cannot claim HRA); you must actually be living in rented accommodation; you must be paying actual rent; your employer must provide HRA as part of your CTC. If your employer does not include HRA in salary structure, you can claim rent deduction under Section 80GG instead (subject to conditions).
For HRA exemption purposes, the Income Tax Act defines only four metro cities: Delhi (and NCR), Mumbai (and MMR), Chennai, Kolkata. For employees in these four cities, the metro rate of 50% of basic salary applies as the HRA limit. For all other cities — Bangalore, Hyderabad, Pune, Ahmedabad, Kochi, etc. — the non-metro rate of 40% of basic salary applies, even if they are large cities with high rents. This is a common source of confusion for IT employees in Bangalore and Hyderabad.
Yes. Rent receipts are required to claim HRA exemption. Minimum requirements: rent receipt for each month with landlord's name, amount paid, and landlord's signature; if annual rent exceeds ₹1 lakh (₹8,333/month), landlord's PAN must be collected and submitted. Digitally signed rent agreements from online portals (NoBroker, etc.) are accepted. If paying rent to parents, you can claim HRA — but parents must declare rental income in their own ITR. You cannot claim HRA if paying rent to spouse.
Yes, in certain situations. If you own a house in one city but rent a home in another city where you work, you can claim HRA for the rented accommodation. However, if you own and occupy a house in the same city where you work, you cannot claim HRA exemption. Some employees own property in their hometown and rent in their work city — this is valid. Additionally, you can simultaneously claim Home Loan interest deduction (Section 24) for the owned property and HRA exemption for the rented property if both conditions are genuinely met.
Section 80GG allows tax deduction for house rent paid by individuals who do not receive HRA — typically self-employed, freelancers, or salaried employees whose employer does not provide HRA. The 80GG deduction is the minimum of: (1) Rent paid minus 10% of total income, (2) ₹5,000 per month (₹60,000 per year), (3) 25% of total income. Conditions: neither you, your spouse, nor your minor child should own residential property in the city of employment; you must not own a self-occupied property anywhere. File Form 10BA with your ITR.
Under the new tax regime (Section 115BAC), HRA exemption is NOT available. The new regime offers lower tax slabs but removes most deductions and exemptions including HRA, Section 80C, House Loan Interest (Section 24), and LTA. Under the old tax regime, all these exemptions apply but the tax slabs are higher. For employees with high HRA and significant deductions (home loan, PPF, insurance), the old regime often results in lower tax. Use a tax regime comparison tool or consult a CA to determine which regime saves more tax based on your specific salary structure.
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