HRA Exemption Calculator
Updated 20 August 2026
Calculate your tax-exempt House Rent Allowance under the old tax regime, based on the least of the three standard rules.
Open the Live HRA Exemption Calculator →Frequently asked questions
What is House Rent Allowance (HRA)?
HRA is a component of salary paid by employers to help employees cover rental housing costs, and a portion of it can be claimed as tax-exempt under the old tax regime if you actually pay rent for accommodation.
What are the three conditions used to calculate HRA exemption?
The exempt amount is the least of: the actual HRA received from your employer, the actual rent paid minus 10% of your basic salary plus dearness allowance, or 50% of basic+DA for a metro city (40% for non-metro).
Which cities count as 'metro' for the higher 50% HRA exemption limit?
For HRA exemption purposes, only Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities, entitling residents there to the 50% of basic+DA limit; all other cities fall under the 40% non-metro limit.
Can I claim HRA exemption under the new tax regime?
No, HRA exemption is available only under the old tax regime; if you opt for the new regime, any HRA received is fully taxable as part of your salary income with no exemption available.