Free Calculator

How much of your HRA is actually tax-free?

House Rent Allowance exemption isn't just your HRA amount — it's the lowest of three specific calculations under the tax rules. Work out your real exemption in seconds.

Calculate Now Book Consultation →

Before you calculate

What is HRA exemption?

If you're a salaried employee who receives House Rent Allowance and pays rent, part of that HRA can be exempt from tax under Section 10(13A) of the Income Tax Act. The exemption isn't simply what you receive — it's calculated as the lowest of three amounts, based on your salary, your actual rent, and the city you live in. This exemption is only available if you're filing under the Old Tax Regime — it isn't available under the New Regime.

Try it now

Calculate your HRA exemption

Enter your monthly figures below — for a precise number tailored to your full return, book a consultation

City of residence

Basic salary + DA, monthly (₹)

HRA received, monthly (₹)

Rent paid, monthly (₹)

Monthly HRA exemption

₹ 17,000

Actual HRA received₹ 20,000

Rent paid − 10% of salary₹ 17,000

50% of salary (metro)₹ 25,000

Taxable HRA (remainder)₹ 3,000

Exemption = the lowest of the three figures above, on a monthly basis

Illustrative estimate only — assumes “salary” is Basic + DA (forming part of retirement benefits), with no other allowances factored in, and applies under the Old Tax Regime only. Book a consultation to confirm the exact figure for your return.

In plain language

Why it's the lowest of three numbers, not just your HRA

Actual HRA received

The full House Rent Allowance your employer pays you each month, as shown on your payslip.

Rent paid, minus 10% of salary

Only the portion of your rent that exceeds 10% of your basic salary counts — the first 10% is treated as something you'd spend regardless of renting.

50% or 40% of salary

A cap based on your basic salary — 50% if you live in Delhi, Mumbai, Kolkata or Chennai, 40% everywhere else.

Questions

Frequently asked

01Can I claim HRA if I live with my parents and pay them rent?

Yes, as long as the arrangement is genuine — you actually pay rent, ideally through a bank transfer, and your parents declare it as rental income. A rent agreement and receipts help support the claim.

02My employer doesn't pay me HRA, but I pay rent — can I still get an exemption?

Not under Section 10(13A), since that requires HRA as part of your salary structure. You may instead be able to claim a deduction under Section 80GG, which has its own limits and conditions — worth checking which applies to you.

03Is HRA exemption available under the new tax regime?

No — the HRA exemption under Section 10(13A) is not available if you opt for the New Tax Regime. If HRA is a significant part of your salary, this is worth factoring into your regime choice.

04What documents do I need to claim HRA exemption?

Rent receipts are essential, and a rent agreement is strongly recommended. If your annual rent exceeds ₹1,00,000, your landlord's PAN is also required — missing this is a common reason claims get flagged.

Recommended for you

Where to go next

ITR-1 Return Filing

For straightforward salaried income — one employer, one house property, no capital gains.

2–3 daysExplore Service

Tax Planning & Advisory

Make sure HRA, 80C, 80D and your regime choice are all working together, not against each other.

OngoingExplore Service

Salaried Employees

Everything else salaried filers usually need to check before submitting their return.

GuideExplore Service

Learn more

Vol. 01How HRA Exemption Actually Works: A Complete GuideThe full rule explained, with worked examples for different salary and rent combinations.Guide01 / 03 Vol. 02Metro vs Non-Metro Cities for HRA: The Full ListOnly four cities qualify for the 50% rate — here's exactly which ones, and why it matters.Guide02 / 03 Vol. 03Old vs New Tax Regime: Which Should You Pick?A plain-language comparison to help you decide what actually saves you money.Guide03 / 03

Selected · Vol. 02

Metro vs Non-Metro Cities for HRA: The Full List — Only four cities qualify for the 50% rate — here's exactly which ones, and why it matters.

Read article

Ready when you are

Let's figure out exactly what your situation needs.

Book a consultation and we'll walk through it together — clear next steps, no obligation. No pressure, no jargon, just a clear read on what applies to you.

No spam
Your details stay private
Response within 24 hours

Thank you — we've received your details.

One of our Chartered Accountants will get back to you within 24 hours.

Rashmi Singh & Co.

How much of your HRA is actually tax-free?

What is HRA exemption?

Calculate your HRA exemption

Why it's the lowest of three numbers, not just your HRA

Actual HRA received

Rent paid, minus 10% of salary

50% or 40% of salary

Frequently asked

Where to go next

ITR-1 Return Filing

Tax Planning & Advisory

Salaried Employees

Related articles

Let's figure out exactly what your situation needs.

Thank you — we've received your details.

How much of your HRA is actually tax-free?

What is HRA exemption?

Calculate your HRA exemption

Why it's the lowest of three numbers, not just your HRA

Actual HRA received

Rent paid, minus 10% of salary

50% or 40% of salary

Frequently asked

Where to go next

ITR-1 Return Filing

Tax Planning & Advisory

Salaried Employees

Related articles

Let's figure out exactly what your situation needs.

Thank you — we've received your details.