🏠 HRA Exemption Calculator
HRA exemption only applies under the Old Tax Regime, and it's the lowest of three numbers — not simply the HRA your employer pays you. This works out exactly how much of your HRA is tax-free.
HRA Exemption = the SMALLEST of:
1. Actual HRA received
2. Rent paid − 10% of Basic salary
3. 50% of Basic (Metro) or 40% of Basic (Non-Metro)
This three-way minimum is why simply receiving a large HRA from your employer doesn't guarantee a large exemption — if your actual rent is low relative to your basic salary, condition 2 often becomes the binding constraint.
Frequently Asked Questions
Do I need rent receipts to claim this?
Yes — your employer typically requires rent receipts (and PAN of the landlord if annual rent exceeds ₹1 lakh) to allow the exemption while computing TDS.
What counts as a 'metro city' for this calculation?
Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities for the 50% HRA exemption rate; all other cities use the 40% rate.
Can I claim HRA exemption under the New Tax Regime?
No — HRA exemption is only available under the Old Tax Regime. If you've opted into the New Regime, this exemption doesn't apply to your tax calculation.
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