# HRA Exemption Calculator

URL: https://speedycalculator.com/calculators/finance/hra-exemption/
Last updated: 2026-10-25

> The HRA exemption calculator works out how much of your house rent allowance is tax-exempt under Section 10(13A) – the lowest of the actual HRA, rent paid minus 10% of salary, and 50% (metro) or 40% (non-metro) of salary – and the taxable HRA.

## Inputs

- Basic salary + DA (yearly)
- HRA received (yearly)
- Rent paid (yearly)
- City

## Results

- Rent paid − 10% of salary
- 50% / 40% of salary
- HRA exemption
- Taxable HRA

## Formula

```
Exempt HRA = minimum of:
1. Actual HRA received
2. Rent paid − 10% of (basic + DA)
3. 50% of (basic + DA) in metros (Delhi, Mumbai, Kolkata, Chennai), 40% elsewhere
```

## Explanation

HRA exemption is available only under the old tax regime. If your annual rent exceeds ₹1 lakh you must give your employer the landlord's PAN. Self-employed people can claim Section 80GG instead.

### How to use the HRA Exemption Calculator

- **Basic salary + DA (yearly)**
- **HRA received (yearly)**
- **Rent paid (yearly)**
- **City**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter your annual basic salary plus DA, HRA received, rent paid and whether you live in a metro city.

### Tips

- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.

### Common mistakes to avoid

- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.

### Inputs explained

FieldWhat to enterBasic salary + DA (yearly)Amount in ₹HRA received (yearly)Amount in ₹Rent paid (yearly)Amount in ₹CityChoose one: Metro (Delhi, Mumbai, Kolkata, Chennai), Non-metro

### What each result means

- **Rent paid − 10% of salary** = max([Rent paid (yearly)] - 0.1×[Basic salary + DA (yearly)], 0)
- **HRA exemption** = min([HRA received (yearly)], min([Rent paid − 10% of salary], [50% ÷ 40% of salary]))
- **Taxable HRA** = [HRA received (yearly)] - [HRA exemption]

### Example values

How the main result changes when **Basic salary + DA** changes and everything else stays at the example values above:

Basic salary + DA (yearly)HRA exemption300,000150,000450,000171,000600,000156,000750,000141,000900,000126,0001,200,00096,000

## Worked example

Inputs — Basic salary + DA (yearly): ₹600,000; HRA received (yearly): ₹240,000; Rent paid (yearly): ₹216,000; City: Metro (Delhi, Mumbai, Kolkata, Chennai).

Results — Rent paid − 10% of salary = ₹156,000.00; 50% / 40% of salary = ₹300,000.00; **HRA exemption = ₹156,000.00**; Taxable HRA = ₹84,000.00.

## FAQ

**How is HRA exemption calculated?**
The lowest of actual HRA, rent minus 10% of salary, and 50%/40% of salary.

**Can I claim HRA in the new tax regime?**
No – only in the old regime.

**Do I need rent receipts?**
Yes, and the landlord's PAN if rent exceeds ₹1 lakh a year.

**What formula does the HRA Exemption Calculator use?**
Exempt HRA = minimum of:.


## Sources

- [Income Tax Department – House rent allowance](https://www.incometax.gov.in/)