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Calculate how much of your House Rent Allowance is exempt from income tax under Section 10(13A), using the standard three-way minimum of actual HRA, rent paid minus 10% of basic, and a percentage of basic salary.
Last updated 5 September 2026
HRA exempt from tax
₹1,80,000
Taxable HRA
₹1,20,000
The least of these three is exempt — in your case, Rent paid minus 10% of basic.
Your annual basic salary plus dearness allowance, if any.
The annual HRA your employer pays you, and the annual rent you actually pay.
Metro (Delhi, Mumbai, Kolkata, Chennai) uses 50% of basic; other cities use 40%. The exempt and taxable HRA are shown instantly, along with which of the three factors limited the exemption.
Exempt HRA = minimum of (Actual HRA, Rent paid − 10% of basic, 50%/40% of basic)
HRA exemption is available only under the old tax regime; the new regime does not allow it.
The three candidates are: actual HRA ₹4,00,000, rent minus 10% of basic = 3,00,000 − 60,000 = ₹2,40,000, and 50% of basic = ₹3,00,000. The smallest, ₹2,40,000, is exempt; the remaining ₹1,60,000 of HRA received is added to taxable income.
To actually claim this exemption, most employers require rent receipts and, if annual rent exceeds ₹1,00,000, your landlord's PAN for their records. Without proof, HRA received may be taxed in full even though you are genuinely paying rent.
If you own the home you live in, you cannot claim HRA exemption on it — HRA exemption requires that you actually pay rent for the accommodation you occupy.
It is legally possible to claim HRA exemption while paying rent to a parent or other family member who owns the home you live in, provided the arrangement is genuine — a real rental agreement, actual rent payments (ideally by bank transfer, not cash), and the recipient declaring that rent as their own taxable income. Tax authorities do scrutinise these arrangements more closely than a payment to an unrelated landlord.
No. HRA exemption under Section 10(13A) is available only if you opt for the old tax regime.
Then your exempt HRA is zero — the "rent paid minus 10% of basic" factor becomes zero or negative (floored at zero), which is always the smallest of the three, so nothing is exempt.
Yes, if you rent a home in one city while owning and paying a home loan on a property elsewhere (or renting it out) — the two are independent claims under the old regime.
No. Only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities for this 50% rule; Gurugram and Noida use the 40% non-metro rate.
Most employers ask for rent receipts (and landlord PAN above ₹1 lakh/year) during the year to apply the exemption to your monthly TDS. If you don't submit it there, you can still claim it directly when filing your return.
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