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SEBI-compliant formulas·Methodology disclosed·Updated May 2026·Free · No signup

HRA Exemption Calculator

Calculate your tax-exempt House Rent Allowance under Section 10(13A). Compare the three-rule formula and see exactly how much tax you save. Metro vs non-metro rates.

SEBI-compliant formulas·Methodology disclosed·Updated May 2026·Free · No signup
1,00,00050,00,000
025,00,000
030,00,000
0%30%
HRA Exempt from Tax
₹2.40 L
Tax saved ₹72,000 · Taxable HRA ₹0
100%EXEMPT
Taxable0%
Exempt100%
Binding Cap

Your exemption is capped by rent − 10% basic — at ₹2.40 L. The other two limits are ₹2.40 L / ₹3.00 L.

Cap (city %)
₹3.00 L
Cap (rent − 10% basic)
₹2.40 L
The Verdict

On ₹2.40 L annual HRA, you can claim ₹2.40 L as tax-exempt under Section 10(13A) — saving ₹72,000 at your 30% slab.

Rent−10%-basic is the binding cap. Higher rent = more exemption (up to the city % ceiling). Make sure you keep rent receipts.

Rent above ₹1 L/year requires landlord's PAN on Form 12BB. Without PAN, employer can't grant exemption — only refundable at ITR.

Section 10(13A), Income Tax ActMethodology →

How exemption scales with rent

TaxableExempt
What if you lived in a different city?

Frequently Asked Questions

How is HRA exemption calculated?
HRA exemption is the MINIMUM of three values: (1) Actual HRA received from employer, (2) 50% of Basic+DA for metro cities or 40% for non-metro, (3) Actual rent paid minus 10% of Basic+DA. The lowest of these three is your tax-exempt HRA under Section 10(13A).
Which cities are considered metro for HRA?
Only 4 cities qualify as metro for HRA exemption: Delhi (NCR), Mumbai, Chennai, and Kolkata. Employees in these cities get 50% of Basic+DA as the Rule 2 calculation. All other Indian cities (including Bangalore, Hyderabad, Pune) are classified as non-metro and get 40%.
Can I claim HRA if I live in my own house?
No. HRA exemption requires you to actually pay rent and live in a rented accommodation. If you own the house you live in, you cannot claim HRA. However, you can claim HRA if you live in a rented house in one city while owning property in another city.
Is HRA available in the new tax regime?
No. HRA exemption under Section 10(13A) is NOT available in the new tax regime (Section 115BAC). If you choose the new regime, your entire HRA becomes taxable. Compare both regimes before deciding — use our Old vs New Tax Regime calculator.
Do I need rent receipts for HRA claim?
Rent receipts are mandatory if annual rent exceeds ₹1,00,000. For rent above ₹1,00,000/month, you must also provide the landlord's PAN. Revenue stamps on receipts are recommended but not legally required. Keep lease agreement as supporting document.

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