Free HRA Calculator
Work out how much of your House Rent Allowance is tax free. Enter your salary, HRA and rent, pick metro or non-metro, and the tool applies the least of three rule to show your exempt and taxable HRA.
Metros allow up to 50% of salary, other cities up to 40%.
Salary for HRA means Basic plus Dearness Allowance. Leave DA at zero if it does not apply to you.
That is ₹1,68,000 exempt across the year
- HRA received
- ₹15,000
- Rent - 10% of salaryLowest
- ₹14,000
- 50% of salary
- ₹20,000
- Exempt HRA
- ₹14,000
- Taxable HRA
- ₹1,000
Handy for a quick estimate. Confirm the final exemption with your employer or accountant before you file.
Your HRA exemption in four steps.
Enter your pay and rent, pick your city type, and read the exempt HRA along with the amount that stays taxable. Everything updates as you type.
Enter your pay
Type your Basic salary, any Dearness Allowance, the HRA your employer pays and the rent you actually pay. Pick whether these are monthly or yearly figures.
Pick your city type
Choose metro if you live in Delhi, Mumbai, Kolkata or Chennai, otherwise non-metro. Metros allow up to 50% of salary, other cities up to 40%.
Read the exemption
The tool applies the least of three rule and shows your exempt HRA, the amount that stays taxable, and all three limits side by side.
Copy or reuse it
Copy the full breakdown in one tap for your tax return, your rent proof file or a quick check with your accountant.
The rules behind the exemption.
HRA looks simple until you claim it. These are the points that decide how much is tax free, and the proof you need to back it up.
The least of three
Your exemption is not just the HRA on your payslip. It is the smallest of three amounts: the HRA received, rent paid minus 10% of salary, and 50% or 40% of salary. Whichever is lowest is what you can claim.
What counts as salary
For HRA, salary means Basic pay plus Dearness Allowance if your DA forms part of retirement benefits. It does not include other allowances, bonuses or perks. That keeps the maths simple and consistent.
Metro vs non-metro
Only Delhi, Mumbai, Kolkata and Chennai are treated as metros for HRA, and they allow up to 50% of salary. Every other city, including Bengaluru, Hyderabad, Pune and Gurugram, is non-metro at 40%.
Rent receipts and landlord PAN
To claim HRA you need rent receipts, and if your rent crosses ₹1,00,000 in a year you also need your landlord’s PAN. Make clean receipts with our free rent receipt generator so your proof is ready.
Living with parents
You can claim HRA on rent paid to your parents if they own the home and you genuinely pay them. They must report that rent as income, and it helps to keep receipts and a bank trail.
Only the old regime
The HRA exemption applies under the old tax regime. If you opt for the new regime, HRA is fully taxable, so weigh both before you decide. Our income tax calculator compares the two side by side.
How the HRA maths works.
Three limits, each with a worked example. Your exemption is the smallest of the three, and the rest of your HRA is taxed.
Limit 1: HRA received
Exempt limit = HRA actually received from your employer
Example: If your payslip shows ₹15,000 HRA a month, that is ₹1,80,000 for the year, and this limit is ₹1,80,000.
Limit 2: rent over 10% of salary
Exempt limit = Rent paid - 10% of (Basic + DA)
Example: On ₹40,000 salary and ₹18,000 rent a month, 10% of salary is ₹4,000, so this limit is ₹14,000 a month.
Limit 3: 50% or 40% of salary
Metro city = 50% of (Basic + DA)
Non-metro city = 40% of (Basic + DA)
Example: On ₹40,000 salary in Mumbai, this limit is ₹20,000 a month. In a non-metro it would be ₹16,000.
Your exemption
Exempt HRA = the least of the three limits
Taxable HRA = HRA received - Exempt HRA
Example: With limits of ₹15,000, ₹14,000 and ₹20,000 a month, you can claim ₹14,000, and ₹1,000 stays taxable.
Choosing between regimes? Compare the new and old tax regimes. Need proof for your claim? Make rent receipts.
Payroll that handles HRA for you.
This tool is great for one employee or your own return. But running HRA, exemptions, declarations and Form 16 across a whole payroll, with proofs and compliance in one place, is a job for real software. That is the kind of payroll, HR and ERP system we build at Techliphant, shaped around how your business actually runs.
Comparing tax regimes? Try the income tax calculator.
Common HRA questions.
It is a free online tool that works out how much of your House Rent Allowance is exempt from income tax under Section 10(13A). You enter your Basic salary, Dearness Allowance, the HRA you receive and the rent you pay, and it applies the least of three rule to show your exempt and taxable HRA.
The exemption is the least of three amounts. First, the actual HRA received from your employer. Second, the rent you pay minus 10% of your salary (Basic plus DA). Third, 50% of salary if you live in a metro city or 40% if you do not. Whichever of these three is smallest is your exempt HRA, and the rest of the HRA is taxable.
It is the method the Income Tax Act uses to cap the HRA exemption. You work out three separate limits, the HRA received, rent minus 10% of salary, and 50% or 40% of salary, and you can only claim the smallest of them. This stops the exemption from being larger than the rent you actually pay or the HRA you actually get.
For HRA, only Delhi, Mumbai, Kolkata and Chennai are metros, and they allow up to 50% of salary. Every other city is treated as non-metro and allows up to 40%, including large cities like Bengaluru, Hyderabad, Pune, Ahmedabad and Gurugram. Pick the right city type in the tool so the third limit is correct.
Salary for HRA means your Basic pay plus Dearness Allowance, where the DA forms part of retirement benefits. It does not include other allowances, overtime, bonus or perquisites. The 10% deduction and the 50% or 40% limit are both worked out on this Basic plus DA figure.
Yes, if your parents own the home and you genuinely pay them rent. Transfer the rent to their account, keep receipts, and remember they must declare that rent as income in their own return. You cannot claim HRA for a home you or your spouse own and live in.
Your employer will usually ask for rent receipts to allow HRA, and if your annual rent is more than ₹1,00,000 you also need to give your landlord’s PAN. Keep receipts for every month you claim. You can make clean, consistent receipts with our free rent receipt generator.
Yes, in many cases. If you rent where you work and own a home elsewhere, or your own home is genuinely not livable from your workplace, you can claim HRA on the rent and the home loan interest and principal separately. It should reflect your real situation, so check the specifics with a tax adviser.
No. The HRA exemption under Section 10(13A) is only available under the old tax regime. If you choose the new regime for its lower slab rates, your HRA is fully taxable. It is worth comparing both, which our free income tax calculator does side by side.
Yes on both. It is free, there is no sign-up, and it runs entirely in your browser. Nothing you type is sent anywhere or saved, so your salary and rent figures stay on your own device.
It is great for a quick check on one employee or your own return. For running HRA, exemptions and Form 16 across a whole payroll, with declarations, proofs and compliance handled in one place, you want proper payroll or HR software. That is the kind of system we build at Techliphant.
Private by design: this calculator runs entirely in your browser, so nothing you type is uploaded or stored. It is provided free for quick estimates and educational use, and it follows the standard HRA rules under Section 10(13A). For your actual return, confirm the figures with your employer or a tax adviser.
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