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Tax · Free & private

HRA Calculator: rent allowance exemption

Paying rent? Find out how much of your house rent allowance is tax-free, and which of the three limits decides it.

Do you live in a metro city?

Metro traditionally means Delhi, Mumbai, Kolkata and Chennai. Check whether your city qualifies under the current rules.

HRA exempt from tax (per year)

₹2,40,000

Old tax regime only. The new regime does not allow HRA exemption.

Exempt per month

₹20,000

Taxable HRA / year

₹0

The exemption is the lowest of these three

  • Actual HRA receivedLowest₹2,40,000
  • Rent paid − 10% of basic + DA₹2,40,000
  • 50% of basic + DA₹3,00,000

HRA exemption ₹2,40,000 a year. Taxable HRA ₹0.

Results are estimates based on the figures you enter and standard formulas. They are for information only and are not financial, investment, tax or legal advice. Rates and rules change, so confirm with your bank, fund house, employer or tax adviser before you decide. Read the full disclaimer.

The HRA rule

Under Section 10(13A), the tax-free part of your HRA is the lowest of:

  1. The actual HRA you receive from your employer.
  2. Rent paid minus 10% of your basic salary plus DA.
  3. 50% of basic plus DA if you live in a metro, or 40% elsewhere.

The rest of your HRA is added to your taxable salary.

Example

Basic + DA of ₹50,000 a month, HRA of ₹20,000 a month, rent of ₹25,000 a month, living in a metro. Per year, the three limits are ₹2,40,000, ₹2,40,000 and ₹3,00,000. The lowest is ₹2,40,000, so that much HRA is tax-free.

Tips to claim HRA

  • Submit rent receipts to your employer before the deadline so less TDS is deducted.
  • Keep a rental agreement and pay rent by bank transfer where possible.
  • If you missed it at work, you can still claim the exemption when filing your return under the old regime.

See how HRA fits into your take-home pay with the salary calculator.

Last reviewed:

Frequently asked questions

How is HRA exemption calculated?
The exempt amount is the lowest of three: (1) the actual HRA you receive, (2) rent paid minus 10% of basic salary plus DA, and (3) 50% of basic plus DA in a metro city or 40% elsewhere.
Can I claim HRA in the new tax regime?
No. HRA exemption is available only in the old tax regime. Use the income tax calculator to see which regime is better for you.
Do I need my landlord’s PAN?
If your rent is more than ₹1 lakh a year, employers ask for the landlord’s PAN. Keep rent receipts and a rental agreement as proof.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay them rent and they own the house. Your parents must show the rent as income in their own tax return.
What if I do not get HRA from my employer?
Self-employed people and salaried people without HRA may be able to claim a deduction for rent under Section 80GG in the old regime, with its own limits.