HRA Exemption Calculator
Find how much of your House Rent Allowance is tax-free under Section 10(13A) — the least of three limits.
Your numbers
Tax-free HRA (exempt)
₹2,40,000The exemption is capped by the smallest of the three rules — here that's Rent paid − 10% of basic.
Exempt HRA
₹2,40,000
Taxable HRA
₹60,000
The three limits (least one applies)
How HRA exemption works
If you receive House Rent Allowance and pay rent, part of that HRA is tax-free under Section 10(13A). The exempt amount is the least of three limits:
- Actual HRA received
- Rent paid − 10% of basic salary
- 50% of basic (metro cities) or 40% of basic (non-metro)
Whichever is smallest is your exemption; the rest of the HRA is added to your taxable income. The chart above shows all three so you can see which one is capping your benefit.
Why your exemption might be lower than expected
- You pay low rent — limit 2 (rent − 10% of basic) shrinks, dragging the exemption down.
- Your basic is low — many components sit outside "basic", reducing limits 2 and 3.
- You live in a non-metro — the 40% cap applies instead of 50%.
Important conditions
- HRA exemption is available only under the old tax regime — the new regime doesn't allow it.
- You must actually pay rent (to a landlord, including sometimes to parents, with genuine transactions). Rent above ₹1 lakh/year requires the landlord's PAN.
- If you own the home you live in, or don't pay rent, no HRA exemption applies.
Related tools
- Old vs New Tax Regime — HRA only helps in the old regime; see if that's better for you.
- Take-Home Salary — how allowances affect your in-hand pay.
- Rent vs Buy — the bigger housing decision.
Frequently asked questions
How is HRA exemption calculated?
It's the least of three amounts: actual HRA received; rent paid minus 10% of basic salary; and 50% of basic for metro cities (40% for non-metro). The smallest of these is exempt from tax.
Is HRA exemption available in the new tax regime?
No. HRA exemption under Section 10(13A) is available only under the old tax regime. The new regime does not allow it.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent to a parent who owns the home and they declare it as income. Keep proper proof such as a rent agreement and bank transfers.
What if my rent is low compared to my HRA?
Then the "rent minus 10% of basic" limit will likely be the smallest, capping your exemption below the HRA you receive — so the balance becomes taxable.