HRA Exemption Calculator
Find out exactly how much of your House Rent Allowance is tax-free — instantly.
Enter Your Details
Base salary excluding allowances
Usually 0 for private-sector employees
Check your salary slip for this figure
Monthly rent × 12 for the financial year
Your HRA Breakdown
Exempted HRA (Tax-Free)
₹0
of your HRA is completely tax-free
Taxable HRA
Added to your gross taxable income
₹0
of your HRA is tax-free · will be added to your taxable income.
How it was calculated
What is HRA (House Rent Allowance)?
House Rent Allowance (HRA) is a component of your salary package provided by your employer to help cover the cost of rented accommodation. For salaried employees living in rented housing, a portion of the HRA received can be claimed as an exemption under Section 10(13A) of the Income Tax Act, 1961, read with Rule 2A of the Income Tax Rules.
This exemption directly reduces your gross taxable income — meaning you pay income tax only on the non-exempt portion of your HRA. Employees who live in their own homes or do not pay rent cannot claim this exemption.
How HRA Exemption is Calculated
The exempt amount is the lowest of the following three values:
Formula
A = Actual HRA received from employer
B = Rent Paid − 10% × (Basic Salary + DA)
C = k × (Basic Salary + DA)
Exempt HRA = Minimum (A, B, C)
where k = 0.50 for metro cities (Delhi, Mumbai, Kolkata, Chennai)
k = 0.40 for all other cities
Worked Example
Basic Salary = ₹6,00,000 / year
DA = ₹0
HRA Received = ₹2,40,000 / year
Rent Paid = ₹1,80,000 / year
City = Mumbai (Metro)
A = ₹2,40,000
B = ₹1,80,000 − ₹60,000 = ₹1,20,000
C = 50% × ₹6,00,000 = ₹3,00,000
Exempt HRA = Min(₹2,40,000, ₹1,20,000, ₹3,00,000) = ₹1,20,000
Taxable HRA = ₹2,40,000 − ₹1,20,000 = ₹1,20,000
Who Can Claim HRA Exemption?
- You must be a salaried individual — HRA exemption is not available to self-employed persons (they may claim deduction under Section 80GG instead).
- HRA must be an actual component of your salary structure as per your offer letter or employment contract.
- You must be actually living in rented accommodation and paying rent.
- If your annual rent exceeds ₹1,00,000, you must furnish the landlord's PAN to your employer.
- You cannot claim HRA exemption if you own the house in which you live, even if HRA forms part of your salary.
- You can claim HRA exemption and simultaneously avail a home loan deduction under Section 24(b) — provided you pay rent for a different house than the one you own.
Documents Required for HRA Claim
Rent Receipts
Original or digital rent receipts for each month, signed by the landlord. Must mention amount, period, and address.
Rent Agreement / Lease Deed
A signed agreement between you and your landlord specifying the rent amount, tenure, and address.
Landlord's PAN Card
Mandatory if annual rent exceeds ₹1,00,000. Submit a copy along with a declaration form to your employer.
Bank Transfer Proof
Bank statements or UPI transaction records as proof of actual rent payment — advisable for all amounts.