HRA Calculator
Find out how much of your House Rent Allowance is tax-exempt under Section 10(13A), and how much remains taxable.
HRA Exemption
₹1,68,000/year exempt from tax
The Three Limbs of Section 10(13A) — Lowest Wins
Taxable Portion
HRA exemption is only available under the old tax regime. If you've opted for the new regime, your full HRA is taxable regardless of rent paid.
How HRA Exemption Works
Most Indian salary structures include House Rent Allowance as a separate component, but not all of it is automatically tax-free. The exemption is governed by Section 10(13A) of the Income Tax Act, and is capped at the lowest of three competing limits: what you actually received as HRA, a percentage of your basic salary tied to your city, and your actual rent expense above a 10%-of-basic threshold. This three-way comparison means someone with a high HRA component but low rent might only get a small exemption, while someone paying high rent in a smaller city might be capped by the city-percentage limb instead.
Metro vs. Non-Metro Limits
The government recognizes only four cities — Delhi, Mumbai, Kolkata, and Chennai — as metros for HRA purposes, qualifying for the 50% of Basic + DA limit. Every other city in India, including major tech hubs like Bangalore, Hyderabad, and Pune, falls under the 40% non-metro limit, regardless of how expensive rent actually is there.
Frequently Asked Questions
How is HRA exemption calculated?
HRA exemption under Section 10(13A) is the lowest of three figures: the actual HRA you receive, 50% of Basic + DA for metro cities (40% for non-metro), or your rent paid minus 10% of Basic + DA. Whichever of these three is smallest becomes your tax-exempt HRA.
Which cities count as 'metro' for HRA purposes?
Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities for HRA exemption, qualifying for the higher 50% limit. All other cities, including Bangalore, Hyderabad, and Pune, use the 40% non-metro limit.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption under Section 10(13A) is only available if you opt for the old tax regime. The new regime offers a higher standard deduction instead, but doesn't allow HRA, 80C, or most other exemptions.
What if I don't pay rent or live in my own house?
If you don't pay rent, your entire HRA received becomes taxable — there's no exemption without rent payments. If you live in a house you own, you also can't claim HRA exemption for that property.
Do I need rent receipts to claim HRA exemption?
Yes. Your employer will typically require rent receipts (and your landlord's PAN if annual rent exceeds ₹1,00,000) to process the exemption through payroll. Keep these documents for your own records even after submission.