HRA Exemption Calculator

Find out how much of your house rent allowance is tax-free, which rule limits you, the tax you save – and how much rent you’d need to pay to claim it all.

  • All three HRA rules
  • Tax saved
  • Rent for full exemption
  • Section 80GG
Salary
Rent

Calculated in your browser. Nothing is saved.

Tax-free HRA for the year –

 

    HRA received in the year– 
    Taxable HRA– 
    Tax saved (approx.)– 

      How to calculate HRA exemption

      1. Enter your salary and HRAType your basic salary, DA and the HRA you get – monthly or yearly. Add commission only if it’s a fixed percentage of turnover.
      2. Add your rent and cityEnter the rent you pay, how many months you paid it, and whether you live in Delhi, Mumbai, Kolkata or Chennai (metro).
      3. See your exemptionThe tax-free HRA is the lowest of the three amounts shown. See the tax you save and tips to claim more.

      HRA exemption example

      Priya lives in Mumbai. Her basic salary is ₹50,000 a month, she gets HRA of ₹20,000 a month and pays rent of ₹18,000 a month.

      RulePer monthPer year
      Actual HRA received₹20,000₹2,40,000
      Rent − 10% of salary (₹18,000 − ₹5,000)₹13,000₹1,56,000
      50% of salary (metro)₹25,000₹3,00,000

      The lowest is ₹1,56,000, so that much of her HRA is tax-free and ₹84,000 is taxable. If she paid ₹25,000 rent a month, her whole HRA would be tax-free.

      Documents to keep

      • Rent agreement and monthly rent receipts (or bank transfer records)
      • Landlord’s PAN if the yearly rent is more than ₹1,00,000
      • Form 10BA if you claim Section 80GG instead of HRA

      This calculator follows Section 10(13A) and Rule 2A of the Income-tax Rules. Rules can change with each Budget – confirm with your employer or a tax adviser.

      Frequently asked questions

      How is HRA exemption calculated?

      The tax-free part of HRA is the lowest of three amounts: the HRA you actually receive; the rent you pay minus 10% of your salary; and 50% of salary if you live in Delhi, Mumbai, Kolkata or Chennai (40% elsewhere). Salary here means basic pay plus DA (if it counts for retirement benefits) plus commission fixed as a percentage of turnover.

      Can I claim HRA in the new tax regime?

      No. HRA exemption, like most deductions, is available only under the old tax regime. In the new regime your whole HRA is taxable. Compare both regimes in our income tax calculator.

      Which cities count as metro for HRA?

      For the 50% limit, the rules name Delhi, Mumbai, Kolkata and Chennai. Every other city, including Bengaluru, Hyderabad and Pune, uses the 40% limit unless the rules are changed – check the rules for your assessment year.

      Do I need my landlord’s PAN?

      If the rent you pay is more than ₹1,00,000 a year, your employer will ask for your landlord’s PAN. Below that, rent receipts are usually enough.

      Can I claim HRA if I pay rent to my parents?

      Yes, if you genuinely pay them rent, they own the house and they show the rent as income in their tax return. Keep bank transfer records and a rent agreement. You can’t claim HRA for rent paid to your spouse.

      I don’t get HRA. Can I still save tax on rent?

      Yes – self-employed people and employees without HRA can claim Section 80GG under the old regime. Switch to the 80GG tab: the deduction is the lowest of ₹5,000 a month, 25% of total income, and rent minus 10% of total income.

      What if my rent changed during the year?

      Tick “Rent changed during the year” and enter the second rent and the months it applied. HRA exemption is worked out for each period and added up, as employers do.

      Is the HRA calculator free?

      Yes, completely free with no sign-up. Everything is calculated in your browser and nothing is saved.

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