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Tax & Salary

HRA Exemption Calculator

Calculate tax-exempt House Rent Allowance (HRA) under Section 10(13A) Rule 2A for metro and non-metro cities.

  • Runs entirely in your browser
  • No sign-up, nothing stored
  • Formula explained below

Salary and rent

Enter monthly figures from your payslip and rent agreement.

₹
₹10K₹3L
₹
₹2K₹1.5L
₹
₹2K₹2L
City of residence

Metro: Mumbai, Delhi, Kolkata, Chennai (50% rule)

Tax-exempt HRA per year · Section 10(13A)
₹1,92,000

₹16,000 per month tax-free. The remaining ₹1,08,000 a year is added to your taxable salary.

HRA received
₹3,00,000
Exempt
₹1,92,000
Taxable
₹1,08,000
  • Exempt HRA64%
  • Taxable HRA36%

The three limits — the lowest one wins

Annual amounts. Your exemption equals the highlighted bar.

  • Lowest limit = your exemption
  • Other limits
Capped by condition 3: rent paid minus 10% of basic
Each extra rupee of rent raises your exemption by a rupee until it reaches ₹3,00,000 a year — at about ₹31,000 a month in rent.

Share of your HRA that is tax-free

Exempt HRA as a percentage of the HRA your employer pays.

HRA received per month
₹25,000
Exempt per month
₹16,000
Taxable per month
₹9,000

The 3 statutory criteria evaluated under Rule 2A

Governed by Condition 3: Rent paid minus 10% of basic salary.

Condition 1 · Actual HRA receivedTotal HRA paid by employer
₹3,00,000
Condition 2 · 50% of Basic SalaryMetro city rate
₹3,60,000
Condition 3 · Rent Paid − 10% BasicExcess rent paid above 10% basic — lowest, so this is your exemption
₹1,92,000

Rules for claiming HRA exemption in India

Under Section 10(13A) of the Income Tax Act, salaried employees living in rented accommodation can claim tax exemption on their House Rent Allowance. The exempt amount is legally defined as the lowest of the three statutory conditions.

Exempt HRA = min( H, R − 10% × B, k × B )
H
HRA received from your employer
R
Actual rent paid
B
Basic salary + DA
k
50% in a metro city, 40% elsewhere
Do I need rent receipts and my landlord's PAN?
Keep rent receipts for every month. If your annual rent exceeds ₹1,00,000 (i.e. more than ₹8,333/month), your employer requires the landlord's PAN card to process the exemption.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption can only be claimed under the old tax regime. Under the new tax regime, no HRA exemption is allowed. See which regime suits you with the income tax calculator.

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