HRA Exemption Calculator
Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A) — find how much of your HRA is tax-free.
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How to use this calculator
- 1
Enter your monthly Basic Salary — HRA exemption is calculated as a percentage of this.
- 2
Enter the HRA component you receive in your salary slip every month.
- 3
Enter the actual rent you pay — you must be living in rented accommodation to claim this.
- 4
Select metro or non-metro based on the city you live in — metro cities get 50% of basic, others get 40%.
Frequently asked questions
What are the three conditions for HRA exemption?
The HRA exempt from tax is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities or 40% for non-metro cities. All three are calculated and the lowest becomes the exemption.
Which cities are classified as metro for HRA?
For HRA purposes, metro cities are Delhi, Mumbai (including Thane and Navi Mumbai), Kolkata, and Chennai. Bengaluru, Hyderabad, Pune, and Ahmedabad are not classified as metro for this purpose — they fall under the 40% non-metro rule.
Can I claim HRA if I live with my parents?
Yes — you can pay rent to your parents, get a rent receipt, and claim HRA exemption. Your parents will need to show this rental income in their tax return. Ensure you have a proper rent agreement and pay via bank transfer.
Do I need rent receipts?
Rent receipts are required if your annual rent exceeds ₹1 lakh. In practice, it is advisable to always maintain rent receipts and a rental agreement as proof for your employer and in case of tax scrutiny.
HRA Exemption Calculator — Section 10(13A) Tax Saving
How HRA exemption reduces your tax
If your employer pays HRA and you live in rented accommodation, the exempt portion of HRA is deducted from your gross income before applying tax slabs. For a person in the 30% bracket with ₹20,000 HRA and ₹15,000 exempt, they save ₹5,400 in annual tax from HRA alone.
HRA and the new tax regime
HRA exemption under Section 10(13A) is NOT available under the new tax regime. If you are opting for the new regime, you cannot claim HRA exemption. This is one of the key reasons why employees paying high rent may find the old regime more beneficial.
What if your employer doesn't give HRA?
If HRA is not part of your salary structure, you can claim deduction under Section 80GG (not 10(13A)) for rent paid — up to ₹5,000/month or 25% of total income, whichever is lower. This applies to both salaried (without HRA) and self-employed individuals.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →