HRA Exemption Calculator India
Work out how much of your house rent allowance escapes tax, and which of the three tests decides it.
HRA Exemption Calculator
HRA exempt from tax
₹1,80,000.00
that is about 1.8 lakh
- HRA that stays taxable₹1,20,000.00
- Actual HRA received₹3,00,000.00
- Rent paid above 10% of basic₹1,80,000.00
- Share of basic pay allowed₹3,00,000.00
Works out in your browser. Nothing you type is sent anywhere.
In short: HRA Exemption Calculator
On basic pay of ₹6,00,000 with ₹3,00,000 of HRA and ₹2,40,000 of rent, the exempt amount is ₹1,80,000.00 and ₹1,20,000.00 stays taxable. The three tests give ₹3,00,000.00, ₹1,80,000.00 and ₹3,00,000.00, and the smallest of them is what the law allows.
What is HRA Exemption?
The house rent allowance exemption is the part of your HRA that is not taxed, set at the smallest of three amounts laid down in Rule 2A.
How is HRA Exemption calculated?
Work out three amounts and take the smallest: the HRA actually received, the rent paid less a tenth of basic pay, and a share of basic pay that depends on whether you live in a metro city. Whichever is lowest is the exemption.
- HRAthe house rent allowance you actually received
- Rthe rent you actually paid in the year
- Bbasic pay plus dearness allowance for the year
- kthe share of basic pay allowed, which is higher in a metro city
A worked example
| Yearly basic pay plus DA | ₹6,00,000 |
|---|---|
| Yearly HRA received | ₹3,00,000 |
| Yearly rent paid | ₹2,40,000 |
| City | Delhi, Mumbai, Kolkata or Chennai |
| Result | |
| HRA exempt from tax | ₹1,80,000.00 |
| HRA that stays taxable | ₹1,20,000.00 |
| Actual HRA received | ₹3,00,000.00 |
| Rent paid above 10% of basic | ₹1,80,000.00 |
| Share of basic pay allowed | ₹3,00,000.00 |
Every figure in this table is produced by the same calculation the tool above runs.
How to use this HRA exemption calculator
- Enter your yearly basic pay plus dearness allowance.
- Enter the HRA your salary slip shows for the year.
- Enter the rent you actually paid in the year.
- Choose whether your city counts as a metro under the rule.
Questions people ask
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities for this rule, which allows a higher share of basic pay. Every other city, including Bengaluru, Hyderabad and Pune, is treated as non-metro. The classification is fixed by the rule, not by city size.
Can I claim HRA under the new regime?
No. The exemption is one of the allowances the new regime does not permit, so it only reduces tax if you choose the old regime. The income tax tool on this site compares the two with your HRA exemption included.
Do I need rent receipts?
Employers generally ask for receipts, and for the landlord's PAN once the yearly rent crosses a threshold. Paying by bank transfer leaves a record that supports the claim. Keep both the receipts and the proof of payment.
Can I claim HRA if I pay rent to my parents?
Yes, provided the arrangement is genuine, the money is actually paid, and your parents declare the rent as their income. Assessing officers do examine such claims. A written agreement and bank transfers make the claim much easier to defend.
Accuracy and sources
Where the figures come from
Estimate only. Not financial or tax advice.
Checked by the Daytoolz team on 16 October 2026. How we check our tools.
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