HRA Exemption Calculator
Calculate your tax-exempt House Rent Allowance under Section 10(13A).
HRA exemption applies under the old regime only. The new regime taxes the full HRA.
About the HRA Exemption Calculator
If you live in rented accommodation and receive HRA as part of your salary, a chunk of it is exempt from income tax under Section 10(13A) — but only if you calculate it correctly. The AlarmDaddy HRA Exemption Calculator applies the three-part rule the Income Tax Act uses and shows you the exempt amount and the taxable balance.
Enter your basic salary, the HRA you receive, the rent you actually pay, and whether you live in a metro city. The calculator computes the minimum of the three statutory limits — actual HRA received, rent paid minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic — and that minimum is your exemption. This matters only under the old tax regime; the new regime does not allow HRA exemption, which the calculator notes.
How to use this calculator
- 1Enter your annual basic salary.
- 2Enter the annual HRA you receive.
- 3Enter the annual rent you pay.
- 4Select whether you live in a metro city (Delhi, Mumbai, Kolkata, Chennai).
- 5Read your exempt HRA and the taxable portion.
The formula
The exemption is the least of three amounts: (1) the actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic for metro cities or 40% for non-metro. Whatever is smallest becomes your tax-free HRA; the rest is taxable.