HRA Exemption Calculator — Calculate Your Tax-Free HRA
Find out exactly how much House Rent Allowance is exempt from income tax under Section 10(13A) of the Income Tax Act.
How to Use the HRA Exemption Calculator
- Enter your Basic Salary and Dearness Allowance (DA) per month.
- Enter the HRA amount you receive from your employer each month.
- Enter your actual monthly rent paid.
- Select whether you live in a Metro or Non-Metro city.
- Results appear instantly — showing the exempt HRA and your taxable HRA component.
How is HRA Exemption Calculated?
What is HRA Exemption?
House Rent Allowance (HRA) is a component of your salary paid by your employer to cover rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of the HRA you receive can be exempt from income tax, reducing your overall tax liability. The exemption is the least of three amounts computed from your salary, rent paid, and city of residence.
Key Terms
- HRA (House Rent Allowance)
- A salary component paid by employers to help employees cover rental housing costs.
- Basic + DA
- The base salary and Dearness Allowance form the foundation for computing the HRA exemption limit.
- Metro Cities
- Delhi, Mumbai, Chennai, and Kolkata — qualifying for the higher 50% exemption limit.
- Section 10(13A)
- The Income Tax Act provision under which salaried employees claim HRA exemption.
- Taxable HRA
- The portion of HRA received that exceeds the exempt amount — added to your gross taxable income.
Frequently Asked Questions
HRA (House Rent Allowance) exemption reduces your taxable income. You can claim it under Section 10(13A) if you receive HRA from your employer and pay rent for your accommodation.
Any salaried employee receiving HRA who lives in rented accommodation. Self-employed individuals cannot claim HRA exemption — they can use Section 80GG instead.
Delhi, Mumbai, Chennai, and Kolkata are classified as metro cities, qualifying for 50% of Basic+DA as the exemption limit. All other cities get 40%.
Rent receipts are mandatory for claims above ₹3,000/month. Your landlord’s PAN is required if annual rent exceeds ₹1 lakh (as per Income Tax circular).
If you live in your own home, you cannot claim HRA exemption — even if your employer pays it as part of your salary package.
Yes, built per Section 10(13A) of the Income Tax Act and Finance Act 2025. For complex situations involving multiple employers or partial-year renting, verify with a CA.