HRA Calculator
Find your exact House Rent Allowance exemption based on your basic salary, rent paid and city — the way the Income Tax Department calculates it.
This calculator gives an indicative estimate based on standard rates and slabs. It isn't a substitute for professional advice — talk to a senior CA for a computation specific to your situation.
The three-way HRA exemption rule
HRA exemption is the lowest of three figures: the actual HRA you receive, the amount by which your rent exceeds 10% of your basic salary (plus DA), and 50% of basic salary (plus DA) if you live in a metro city or 40% if you don't. Whichever of the three is smallest is what you get to exempt.
Only available under the old regime
HRA exemption is one of the deductions that disappeared under the new tax regime — it's only available if you've opted for the old regime when filing your return.
Claiming it correctly
HRA exemption needs to be reported accurately alongside your other income and deductions — a step our income tax return service handles for you, with every claim backed by proof and reviewed by a senior CA.
Frequently asked questions
How is HRA exemption calculated?▾
HRA exemption is the lowest of three amounts: the actual HRA received, rent paid minus 10% of basic salary (plus DA), and 50% of basic salary (plus DA) for metro cities or 40% for non-metro cities.
Which cities count as metro for HRA purposes?▾
Delhi, Mumbai, Kolkata and Chennai are treated as metro cities, qualifying for the higher 50% exemption limit. All other cities fall under the 40% non-metro limit.
Can I claim HRA exemption under the new tax regime?▾
No — HRA exemption is available only under the old tax regime. If you've opted for the new regime, HRA received is fully taxable regardless of rent paid.
Do I need rent receipts to claim HRA exemption?▾
Yes — rent receipts are required, and if annual rent exceeds ₹1 lakh, you'll also need your landlord's PAN. If your landlord doesn't have a PAN, a declaration from them is required instead.
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