HRA Exemption Calculator
Calculate how much of your House Rent Allowance is exempt from income tax under the old regime.
The HRA exemption rule
The exempt amount is the lowest of three figures:
- The actual HRA your employer pays you.
- Rent paid minus 10% of your salary (basic plus DA).
- 50% of salary if you live in a metro, otherwise 40%.
Whatever HRA is above this exempt amount is added to your taxable income.
Example
With a basic of ₹8 lakh, HRA of ₹3.2 lakh and rent of ₹3 lakh in a metro: option 1 is ₹3.2 lakh, option 2 is ₹2.2 lakh and option 3 is ₹4 lakh. The exempt HRA is ₹2.2 lakh.
Conditions
- HRA exemption applies under the old tax regime only.
- Keep rent receipts; for yearly rent above ₹1 lakh, you must give your landlord's PAN to your employer.
- Rules on which cities count as metros may change, so verify with the Income Tax Department.
Frequently asked questions
Can I claim HRA if I live with my parents?
Yes, if you actually pay rent to them and they report it as income, with proper proof.
Is HRA available in the new regime?
No, HRA exemption is not available in the new tax regime.
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Last reviewed: October 2026. Results are estimates, not financial advice.