HRA Calculator
Compute your House Rent Allowance exemption and taxable HRA under section 10(13A).
- Actual HRA received
- ₹2,00,000.00
- Rent paid − 10% of basic (applies)
- ₹1,90,000.00
- 50% of basic salary
- ₹2,50,000.00
- Exempt HRA
- ₹1,90,000.00
- Taxable HRA
- ₹10,000.00
HRA exemption under section 10(13A) / Rule 2A is the least of the three amounts above. Metro (Delhi, Mumbai, Kolkata, Chennai) uses 50% of basic, other cities 40%. Amounts are per year. Available only under the old tax regime — the 10(13A) exemption is not allowed under the new regime u/s 115BAC, which has been the default since AY 2024-25.
Independent · No commissions · No fund-house data — how the numbers are computed
How it works
This calculator computes how much of your House Rent Allowance is exempt from income tax under section 10(13A) and Rule 2A. Enter your annual basic salary plus DA, the HRA you receive, the rent you pay, and whether you live in a metro city — it shows the exempt and taxable portions of your HRA and which of the three statutory limits is the binding one.
The exemption is the least of three amounts: the actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for all other cities. Whichever of the three is smallest is what escapes tax; the rest of the HRA is added to taxable salary. All amounts are annual, and basic salary includes dearness allowance.
The exemption is available only under the old tax regime. The new regime under §115BAC — the default since AY 2024-25 — disallows the 10(13A) exemption entirely, so HRA is fully taxable there. This makes HRA one of the largest single reasons a taxpayer paying substantial rent may still be better off on the old regime.
Exempt HRA = min( HRA received, Rent − 10% × Basic, 50% × Basic (metro) or 40% × Basic (non-metro) )HRA received is the annual allowance paid by the employer; Rent is annual rent paid; Basic is annual basic salary plus dearness allowance. The exemption is the least of the three amounts, and the balance of the HRA is taxable.
Frequently asked questions
Is HRA exemption available in the new tax regime?
No. The HRA exemption under section 10(13A) is available only under the old tax regime. The new regime under §115BAC — the default since AY 2024-25 — disallows it along with most other exemptions and deductions, so the entire HRA is taxable there. A taxpayer paying substantial rent should compare regimes with the exemption included on the old-regime side before choosing.
How is the HRA exemption calculated?
The exempt HRA under section 10(13A) / Rule 2A is the least of three annual amounts: the actual HRA received from the employer, rent paid minus 10% of basic salary (including DA), and 50% of basic salary in a metro city or 40% elsewhere. Whichever is smallest is exempt; the remainder of the HRA received is added to taxable salary. For example, on a ₹5 lakh basic, ₹2 lakh HRA and ₹2.4 lakh rent in a metro, the exemption is ₹1.9 lakh — rent minus 10% of basic binds.
Which cities count as metro for HRA?
Only four cities count as metro for the HRA exemption: Delhi, Mumbai, Kolkata and Chennai, where the third limit is 50% of basic salary. Every other city — including Bengaluru, Hyderabad, Pune, Gurugram and Noida, despite their rent levels — is non-metro for this rule, with a 40% limit. The classification comes from Rule 2A and has not been expanded.
Can I claim HRA if I live with my parents?
The exemption requires rent actually paid for accommodation you occupy but do not own. Paying documented rent to a parent who owns the house can qualify, provided the arrangement is genuine — rent actually transferred, ideally under a rent agreement, and the parent declaring it as rental income in their return. Rent paid to a spouse is generally not accepted. Without any rent paid, no exemption is available.
Why is 10% of basic subtracted from rent in the HRA formula?
Rule 2A treats the first 10% of basic salary as the amount anyone is expected to spend on housing regardless of allowances, so only rent above that level is considered driven by the HRA. That is why the second limit is rent paid minus 10% of basic (floored at zero): if your annual rent does not exceed 10% of basic plus DA, the exemption is nil however large the HRA received.
Go further
See what the old regime with your HRA exemption costs versus the new regime.
Where HRA sits inside the CTC-to-take-home pipeline.
High rent can trigger TDS obligations of its own under §194I.
The other big old-regime deduction usually weighed alongside HRA.