Calculate HRA tax exemption in India for metro and non-metro cities. Enter basic salary, HRA received and rent paid to find exempt and taxable HRA instantly.
HRA exemption = least of (1) actual HRA received, (2) rent paid − 10% of basic salary, (3) 50% of basic in metro cities or 40% in non-metro citiesTaxable HRA = HRA received − exemptionNegative results are treated as zeroHRA is India's most-claimed salary exemption and most-miscalculated one: it is the least of actual HRA, rent minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic. On 50,000 basic with 20,000 HRA and 15,000 rent in a metro, only 10,000 is exempt, and this calculator shows exactly which leg binds you.
HRA exemption old vs new regime settles lakhs of tax decisions yearly: the new regime (115BAC) gives zero HRA benefit, so rent-payers often win with the old regime despite lower slabs. Recompute both sides every year.
Rent to parents HRA claim works with receipts they declare as income, while spouse rent is usually disallowed. Landlord PAN becomes mandatory above 1 lakh yearly rent, and no rent paid (own house) means zero exemption regardless of HRA in salary.
Delhi, Mumbai, Chennai and Kolkata get the 50% limit; all other cities use the 40% limit.
From your monthly rent, 10% of basic salary is subtracted first — only the balance counts toward exemption. If rent is below 10% of basic, this leg gives zero.
Keep monthly rent receipts, and your landlord's PAN if yearly rent exceeds ₹1 lakh. No PAN is needed below that limit.
No. The new regime under section 115BAC gives no HRA exemption at all. Compare both regimes yearly — HRA often makes the old regime better for rent-payers.
Rent paid to parents with proper receipts (which they must declare as income) is accepted. Rent paid to a spouse is usually disallowed by tax authorities.
No. HRA exemption needs actual rent paid for accommodation. Living in your own house gives zero exemption even if HRA is part of your salary.
Last updated: 14 Oct 2026, 00:13 IST