HRA Exemption Calculator
Calculate your HRA tax exemption using the min-of-three rule. Supports metro and non-metro cities with full breakup.
✓ Runs in your browser · Updated 2026-03-30Enter values and click Calculate HRA to see results
How to Use the HRA Calculator
Enter your annual basic salary, HRA received from employer, total annual rent paid, and select your city type (metro or non-metro). The calculator applies the min-of-three rule and shows your exact HRA exemption amount.
What is HRA Exemption?
House Rent Allowance (HRA) is a component of salary given to employees for accommodation expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA is exempt from tax if you are paying rent. The exemption is the minimum of three calculated values — this is known as the "min-of-three rule".
Min-of-Three Rule
Metro cities are Delhi, Mumbai, Chennai, and Kolkata. All other cities get the 40% rate.
Important Points
- You must actually pay rent to claim HRA exemption — merely receiving HRA is not enough
- If rent paid exceeds ₹1,00,000 per year, you must provide your landlord's PAN
- HRA exemption is only available under the Old Tax Regime. The New Regime does not allow this deduction
- If you live in your own house or don't pay rent, the entire HRA is taxable
Frequently Asked Questions
How is HRA exemption calculated in India?
HRA exemption is the minimum of: actual HRA received, 50% of basic salary for metro cities (40% for non-metro), or rent paid minus 10% of basic salary.
Which cities are considered metro for HRA calculation?
Under Indian income tax rules, only Delhi, Mumbai, Chennai, and Kolkata are classified as metro cities for HRA exemption purposes.
Can I claim HRA if I live in my own house?
No, HRA exemption can only be claimed if you are paying rent for your accommodation. If you live in your own house, the full HRA received is taxable.