HRA Calculator
Calculate how much of your House Rent Allowance (HRA) is exempt from income tax under the old tax regime, based on your salary, rent paid and city of residence.
The Three Factors Compared (Annual)
| Factor | Amount |
|---|---|
| (a) Actual HRA Received | ₹2,40,000 |
| (b) 50% of Basic + DA | ₹2,40,000 |
| (c) Rent Paid − 10% of Basic + DA | ₹1,68,000 |
The exemption is the smallest (minimum) of these three amounts.
How to Use the HRA Calculator
- 1Enter your monthly Basic Salary and Dearness Allowance (DA), if any.
- 2Enter the monthly HRA you actually receive from your employer.
- 3Enter the actual monthly rent you pay.
- 4Select whether you live in a metro city (Delhi, Mumbai, Kolkata or Chennai) or a non-metro city.
- 5Your annual HRA exemption, taxable HRA, and the three underlying factors compared appear instantly.
HRA Exemption Formula Used
Important: HRA exemption is available only under the old tax regime. If you have opted for the new tax regime, this exemption does not apply — the new regime does not allow an HRA deduction at all.
Under the old regime, the HRA exemption you can claim is the minimum of these three amounts:
- (a) Actual HRA received from your employer
- (b) 50% of (Basic Salary + DA) if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% of (Basic Salary + DA) for a non-metro city
- (c) Actual rent paid minus 10% of (Basic Salary + DA) — if this comes out negative, it is treated as zero
Whichever of the three is smallest becomes your exempt HRA. The remainder — HRA Received minus Exemption — is your taxable HRA, added to your taxable salary income.
You must actually be paying rent to claim this exemption, and if your annual rent exceeds ₹1,00,000, you are required to provide your landlord's PAN to your employer (or a declaration if the landlord doesn't have a PAN).
Worked example: Basic Salary + DA = ₹40,000/month, HRA Received = ₹20,000/month, Rent Paid = ₹18,000/month, Metro city.
- (a) Actual HRA received = ₹20,000
- (b) 50% of ₹40,000 = ₹20,000
- (c) ₹18,000 − 10% of ₹40,000 (₹4,000) = ₹14,000
The smallest of the three is (c), ₹14,000/month, so the monthly HRA exemption is ₹14,000 (₹1,68,000/year), and the taxable portion is ₹20,000 − ₹14,000 = ₹6,000/month (₹72,000/year).
Frequently Asked Questions
Formula and figures on this page were checked against official sources as of August 2026. See our editorial process. This tool is for informational purposes only and isn't financial, tax or medical advice.