HRA Calculator
What This Tool Does
This calculator finds how much of your House Rent Allowance (HRA) is tax-exempt, based on your basic salary, HRA received, actual rent paid, and whether you live in a metro city — under Section 10(13A) of the Income Tax Act.
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How It’s Calculated
HRA exemption is the lowest of three amounts:
- Actual HRA received from your employer
- Rent paid minus 10% of salary (basic + DA)
- 50% of salary (basic + DA) if you live in a metro city, or 40% if not
Worked example: Basic salary ₹30,000/month, no DA, HRA received ₹12,000/month, rent paid ₹14,000/month, living in a metro city.
Annual figures: Basic ₹3,60,000 | HRA received ₹1,44,000 | Rent paid ₹1,68,000
- Actual HRA received: ₹1,44,000
- Rent − 10% of salary: 1,68,000 − 36,000 = ₹1,32,000
- 50% of salary (metro): ₹1,80,000
The lowest of these three is ₹1,32,000 — that’s the exempt (tax-free) HRA.
Taxable HRA = HRA Received − Exempt HRA = 1,44,000 − 1,32,000 = ₹12,000/year
So of the ₹1,44,000 in HRA received, ₹1,32,000 is tax-free and ₹12,000 is added to taxable income.
Edge Cases and Special Rules
- Only available under the old tax regime: HRA exemption under Section 10(13A) isn’t available at all if you’ve opted for the new tax regime — HRA received is fully taxable there regardless of rent paid.
- Metro cities are specifically defined: For this exemption, only Delhi, Mumbai, Kolkata, and Chennai count as metro cities (50% rate); every other city uses the 40% rate.
- Three conditions must all be met: You must be salaried with HRA as part of your salary, actually live in rented accommodation, and your rent must exceed 10% of your salary — self-employed individuals can’t use this exemption.
- Salary means basic + DA: For this calculation, “salary” specifically refers to basic pay plus dearness allowance (if part of retirement benefits), not your full gross salary.
HRA Tax Exemption vs. Central Government HRA Pay Scale
These are two completely different systems that share the same name. The Section 10(13A) exemption covered above applies to any salaried employee (private or government) under the old tax regime, based on actual rent paid and salary. Separately, Central Government employees receive HRA itself as a salary component under 7th Pay Commission rules — calculated as a percentage of Basic Pay only (not DA), based on their city’s official classification (X, Y, or Z, by population). With Dearness Allowance having crossed the 50% threshold, the current rates are 30% for X cities, 20% for Y cities, and 10% for Z cities of Basic Pay. This is how much HRA a government employee receives, entirely separate from how much of it is later tax-exempt under Section 10(13A).
Who Uses This
- Salaried employees living in rented accommodation wanting to know their tax-exempt HRA
- Anyone comparing take-home pay impact between the old and new tax regimes
- Central Government employees wanting to understand their HRA pay slab separately from tax exemption
- Employees planning rent payments with tax efficiency in mind
Exempt HRA vs. Taxable HRA
These are the two pieces of HRA received, and understanding the split matters for filing accurately. Exempt HRA is the portion excluded from taxable income — the lowest of the three conditions above. Taxable HRA is simply what’s left: total HRA received minus the exempt portion, which gets added to your taxable salary just like any other income component.
FAQ
How much of my HRA is tax-exempt?
The lowest of: actual HRA received, rent paid minus 10% of salary, or 50%/40% of salary depending on whether you live in a metro city.
Can I claim HRA exemption under the new tax regime?
No, HRA exemption under Section 10(13A) is only available under the old tax regime.
Which cities count as metro for HRA purposes?
Only Delhi, Mumbai, Kolkata, and Chennai qualify for the 50% rate; all other cities use 40%.
Is DA included when calculating HRA exemption?
Yes, “salary” for this calculation means basic pay plus dearness allowance where applicable.
Is HRA for government employees calculated the same way as the tax exemption?
No, Central Government HRA pay is a separate calculation based on Basic Pay and city classification (X/Y/Z) under 7th CPC rules, distinct from the Section 10(13A) tax exemption.
Try It Above
Enter your basic salary, DA, HRA received, rent paid, and city type in the calculator above to get your exempt and taxable HRA instantly. Figures are for general estimation only — confirm your exact tax treatment with a tax professional or your employer’s payroll team.