HRA Calculator
Calculate your HRA tax exemption under Section 10(13A) of the Income Tax Act. Enter your basic salary, HRA received, rent paid, and city to find out how much HRA is tax-free.
How is HRA Exemption Calculated?
House Rent Allowance (HRA) is a component of your salary that helps cover the cost of rented accommodation. Under Section 10(13A) of the Income Tax Act, a part of the HRA you receive is exempt from tax, provided you actually pay rent. The exempt amount is the lowest of three values: (1) Actual HRA received from your employer, (2) 50% of your Basic salary if you live in a metro city (Delhi, Mumbai, Chennai, or Kolkata) or 40% for non-metro cities, and (3) Rent paid minus 10% of your Basic salary.
The HRA exemption applies only if you are a salaried individual paying rent for accommodation. Self-employed individuals and those who live in their own home are not eligible for this exemption. If your annual rent exceeds ₹1 lakh, you must provide your landlord's PAN to claim the exemption.
Under the new tax regime introduced in Budget 2023, HRA exemption is not available — it is applicable only under the old (existing) tax regime. If you are evaluating which regime to opt into, compare the tax impact with and without HRA exemption based on your actual rent and salary.
This calculator is for educational purposes only and covers the standard HRA exemption formula under the old tax regime. Individual tax outcomes may vary. Consult a qualified tax adviser for personalised advice.