Calculate your House Rent Allowance exemption instantly. Find out how much HRA you can claim, tax savings and state-wise rent percentages. Free, accurate & no signup required.
HRA Exemption
₹24,000
Taxable HRA
₹1,000
Est. Tax Saved (30% slab)
₹7,200
Calculation Breakdown
Actual HRA: ₹25,000
50% of (Basic + DA): ₹30,000
Rent Paid - 10% of (Basic + DA): ₹24,000
HRA Exemption = Min: ₹24,000
HRA Exemption = Min of:
1) Actual HRA
2) 50/40% × (Basic+DA)
3) Rent - 10%×(Basic+DA)
Metro: 50% rate
Non-metro: 40% rate
✓Document rent receipts properly
✓Get landlord PAN mandatory
✓Higher rent = More exemption
✓Verify city classification
✓File ITR with HRA claim
HRA exemption percentage by city. Metro cities have 50% rate, others have 40%.
| City | Exemption Rate | Type |
|---|---|---|
| Delhi | 50% | Metro |
| Mumbai | 50% | Metro |
| Bangalore | 50% | Metro |
| Chennai | 50% | Metro |
| Kolkata | 40% | Non-Metro |
| Hyderabad | 40% | Non-Metro |
| Pune | 40% | Non-Metro |
| Ahmedabad | 40% | Non-Metro |
HRA stands for House Rent Allowance — a component of your salary provided by your employer to help pay rent. The income tax department allows you to claim an exemption on HRA, which means a portion of it is not taxed.
The HRA exemption is calculated as the minimum of: (1) Actual HRA received, (2) 50% of basic + DA (in metro) or 40% (non-metro), and (3) Rent paid minus 10% of basic + DA.
Step 1 — Enter your Basic Salary from your salary slip.
Step 2 — Enter Dearness Allowance (DA) if applicable.
Step 3 — Enter the HRA amount you receive from employer.
Step 4 — Enter the actual rent you pay monthly.
Step 5 — Select if you live in a metro or non-metro city.
Step 6 — Get instant calculation of HRA exemption and tax savings.
Must Be in Rental Accommodation
You should be living in a rented property. If you own the property you live in, you cannot claim HRA exemption.
Receiving HRA from Employer
HRA should be explicitly mentioned in your salary structure. Some employers do not provide HRA.
Have Valid Rent Agreement
A proper rental agreement signed by both landlord and tenant is required for claiming HRA.
Landlord PAN Required
From FY 2022-23, landlord's PAN is mandatory for HRA claims above ₹1 lakh per annum.
File ITR
You must file an income tax return (ITR) to claim HRA exemption.
Direct Tax Savings
HRA exemption directly reduces your taxable income, resulting in significant tax savings at year-end.
Complements Other Deductions
HRA works well with other deductions like 80C, 80D, and medical expenses.
No Spending Required
Unlike other deductions, HRA saving doesn't require you to spend more — you already pay the rent.
Higher in Metro Cities
Metro cities offer 50% exemption vs 40% in non-metro areas, benefiting city dwellers more.
Easy to Claim
With proper documentation, HRA is straightforward to claim and rarely audited.
HRA exemption is the amount of House Rent Allowance that is exempt from income tax. It is the minimum of: (i) Actual HRA received, (ii) 50% of basic salary + DA (in metro) or 40% (non-metro), or (iii) Rent paid minus 10% of basic salary + DA.
Metro cities include Delhi, Mumbai, Bangalore, and Chennai. In these cities, HRA exemption is calculated at 50% of salary. In non-metro cities, it is 40%.
No, HRA exemption is only available if you live in a rented property. If you own the property you live in, you cannot claim HRA exemption.
You need: (i) Rent receipt from landlord, (ii) Rent agreement, (iii) Landlord's PAN and bank details, (iv) Self-declaration form.
HRA reduces your taxable income, which directly reduces your income tax liability. More HRA exemption means lower taxable income and lower tax to pay.
Yes, you can file a revised ITR if your HRA changes due to relocation. The new HRA exemption applies from the month of relocation.
🎯
Instant Calculation
Get HRA exemption and tax savings instantly.
📊
Detailed Breakdown
See all three criteria compared clearly.
🌍
Metro/Non-metro Aware
Auto-calculates different rates by city type.
📱
Mobile Friendly
Works perfectly on phone, tablet & desktop.
Learn more about HRA and tax-saving strategies
Use this free HRA calculator to instantly find out your House Rent Allowance tax exemption under the old income tax regime. Enter your basic salary, the HRA component in your salary, your monthly rent, and your city type (metro or non-metro) — the calculator applies all three conditions and shows the exact exempt amount, taxable HRA, and annual tax saving.
HRA exemption is one of the most valuable tax benefits available to salaried employees in India. For someone paying ₹25,000/month in rent in a metro city with a basic salary of ₹60,000/month, the annual HRA exemption can reduce taxable income by ₹2.4–3 lakh — saving ₹72,000–93,600 in tax for someone in the 30% bracket.
The HRA exemption is the minimum of these three amounts:
| Condition | Formula | Example (₹60K basic, ₹20K HRA, ₹18K rent, Metro) |
|---|---|---|
| Condition 1 | Actual HRA received | ₹20,000/month |
| Condition 2 | 50% of basic (metro) / 40% (non-metro) | ₹30,000/month (50% of ₹60,000) |
| Condition 3 | Rent paid − 10% of basic salary | ₹18,000 − ₹6,000 = ₹12,000/month |
| ✅ HRA Exemption = Minimum of all three | ₹12,000/month = ₹1,44,000/year | |
| Basic Salary | HRA Received | Monthly Rent | City | HRA Exempt/month | Annual Tax Saving (30%) |
|---|---|---|---|---|---|
| ₹40,000 | ₹16,000 | ₹12,000 | Non-Metro | ₹8,000 | ₹29,952/yr |
| ₹60,000 | ₹24,000 | ₹18,000 | Metro | ₹12,000 | ₹44,928/yr |
| ₹80,000 | ₹32,000 | ₹25,000 | Metro | ₹17,000 | ₹63,648/yr |
| ₹1,00,000 | ₹40,000 | ₹30,000 | Metro | ₹20,000 | ₹74,880/yr |
| ₹1,50,000 | ₹60,000 | ₹50,000 | Metro | ₹35,000 | ₹1,31,040/yr |
HRA exemption is the tax-free portion of the House Rent Allowance you receive from your employer. The exempt amount is the minimum of three values: (1) actual HRA received from employer, (2) 50% of basic salary if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities, and (3) actual rent paid minus 10% of basic salary. The lowest of these three is your HRA exemption.
For HRA calculation, only four cities are classified as metro: Delhi, Mumbai, Chennai, and Kolkata. Residents of these cities get 50% of basic salary as the HRA exemption threshold. All other cities — including Bengaluru, Hyderabad, Pune, Ahmedabad, Jaipur — are classified as non-metro and get 40% of basic salary.
No. HRA exemption is only available for rented accommodation. If you live in your own property, you cannot claim HRA exemption even if your employer pays you HRA — the full HRA becomes taxable. However, you can still claim home loan tax benefits under Section 80C (principal) and Section 24(b) (interest).
You need: rent receipts (monthly) showing landlord name, amount, and address; rent agreement; if annual rent exceeds ₹1 lakh, the landlord's PAN is mandatory. Submit these to your employer's HR/payroll team before the deadline (usually January–February). If you miss the employer deadline, claim the exemption directly when filing your ITR.
Yes, in specific situations. You can claim HRA (for rented residence) and home loan benefits (Section 80C + Section 24b) simultaneously if: your rented home and the property under loan are in different cities, OR the home loan property is under construction, OR you live on rent while your owned property is in another city for valid reasons. Both claims must be genuine and documentable.
No. HRA exemption is not available under the new tax regime (the default regime from FY 2024-25 onwards). It is only available under the old tax regime. If you are on the new regime, your entire HRA component is taxable. This is one of the key reasons salaried employees who pay significant rent often prefer the old tax regime.