HRA Exemption Calculator
Find how much of your HRA is tax-exempt with the 3-rule test.
Least of: actual HRA ₹20,000 · rent − 10% of basic ₹11,000 · 50% of basic ₹20,000. HRA exemption applies under the old tax regime only.
Results are estimates for information only, not financial advice. See how we build and verify our calculators.
Work out how much of your House Rent Allowance escapes income tax. The exemption is the least of three amounts — actual HRA received, rent paid minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic salary. This calculator shows all three and the binding one.
How to use the HRA Calculator
- Enter your monthly basic + DA, the HRA you receive, and the rent you pay.
- Pick metro or non-metro city.
- Read the exempt and taxable HRA per month and per year.
Frequently asked questions
How is HRA exemption calculated?
It is the least of: (1) actual HRA received, (2) rent paid minus 10% of basic + DA, and (3) 50% of basic + DA in a metro (40% elsewhere). Whatever remains of your HRA is taxable.
Does HRA exemption work under the new tax regime?
No — HRA exemption is available only under the old tax regime. Under the new regime, HRA is fully taxable, which is one factor when choosing between regimes.
Which cities count as metro for HRA?
Delhi, Mumbai, Kolkata and Chennai qualify for the 50% limit; all other cities use 40%.