Free · unlimited · old regime
HRA exemption calculator
Your house rent allowance is only partly tax-free. The exempt slice is the least of three figures — your HRA, your rent above 10% of salary, and 50% or 40% of salary. This works out all three and shows which one caps you.
Monthly figures
Salary for HRA means basic pay plus dearness allowance only.
Only rent above 10% of salary counts towards the exemption.
Metro cities (Delhi, Mumbai, Kolkata, Chennai) use 50% of salary; everywhere else 40%.
HRA exempt from tax · per year
₹1,56,000
₹13,000 a month · taxable HRA ₹84,000 a year
This is one salary, one city, one year.
Taxlabs keeps your HRA proof in order all year — rent receipts, agreement and landlord PAN filed as you go, ready when the return is due.
Frequently asked
How is the HRA exemption calculated?
It is the least of three figures: the HRA you actually receive; the rent you pay minus 10% of your salary (basic + DA); and 50% of salary if you live in a metro, 40% if you do not. Whichever is smallest is the exempt amount; the rest of your HRA is taxable. The calculator highlights which of the three is setting your limit.
What counts as a metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are metros for this rule, and they use 50% of salary. Every other city — including Bengaluru, Hyderabad and Pune — uses 40%. It is a fixed statutory list, not a question of city size.
Can I claim HRA under the new tax regime?
No. The HRA exemption under section 10(13A) is available only under the old regime. If you opt for the new regime, your entire house rent allowance is taxable and this calculation does not apply.
Can I claim HRA if I pay rent to my parents?
Yes, provided the arrangement is genuine — you actually pay the rent, ideally by bank transfer, and your parents own the home and report the rent as income in their own return. Keep a rent agreement and receipts; this is an area the department scrutinises.
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Computed under section 10(13A) and rule 2A. Available only under the old regime. Figures are monthly and annualised at ×12; a mid-year change in salary, rent or city should be worked out period by period. Nothing you type is sent to us or stored.