Find out exactly how much HRA is tax-free. Enter your salary details and get instant results with AI-powered tips to save maximum tax on house rent.
Metro cities: 50% of Basic
Non-Metro: 40% of Basic
Only in Old Tax Regime
Section 10(13A)
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Usually 40–60% of your gross salary
As shown on your salary slip under HRA
Enter 0 if living in own house or not paying rent
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Your Annual HRA Exemption (Tax-Free)
₹0
Annual Basic Salary
Annual HRA Received
Annual Rent Paid
✅ HRA Exempt (Tax-Free)
❌ HRA Taxable
💰 Tax Saved (30% slab)
📐 How HRA Exemption is Calculated
The HRA exemption is the MINIMUM of these 3 amounts. The smallest of the three is your tax-free HRA.
AActual HRA received The full HRA component in your salary slip per year
▼ MINIMUM OF THESE THREE ▼
B50% of Basic (Metro) / 40% of Basic (Non-Metro) For Delhi, Mumbai, Kolkata, Chennai = 50% of annual basic. All other cities = 40%
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CRent Paid − 10% of Basic Salary Annual rent paid MINUS 10% of annual basic. If this is negative, it becomes ₹0
🎯 HRA Exemption = MIN (A, B, C) — enter your values above to calculate instantly
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AI Tax Tips — Maximise Your HRA Benefit
Smart strategies most people don't know about
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Pay Rent to Parents — Completely Legal!
If you live in your parents' house, you can pay rent to them and claim HRA exemption. Get a proper rent agreement and receipts. Your parents show it as rental income — but if they have no other income, they may pay zero tax on it!
💰 Potential saving: ₹30,000–1,00,000/year for many salaried employees
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PAN Required Above ₹1 Lakh Annual Rent
If your annual rent exceeds ₹1,00,000 (₹8,333/month), you must provide your landlord's PAN to your employer. Without this, your employer may not give you the full exemption.
⚠️ Action needed: Collect landlord PAN for rent above ₹8,333/month
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HRA Only Works in Old Tax Regime
HRA exemption is NOT available if you choose the New Tax Regime (FY 2025-26). Before choosing between Old vs New regime, calculate your HRA exemption — it might be worth staying in Old Regime if your rent is high.
To claim HRA: (1) Rent receipts for every month — even hand-written are valid. (2) Rent agreement on stamp paper. (3) Landlord's PAN if rent > ₹1L/year. (4) Bank transfer proof if rent paid digitally.
✅ Cash payments accepted but digital transfers are easier to prove
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Changed Residence During the Year?
If you moved from non-metro to metro or changed houses mid-year, calculate HRA separately for each period. For months in metro = 50% of basic applies. For months in non-metro = 40%. Add both to get annual exemption.
📌 Use "Calculation Period" option above to calculate each period separately
🌆 Metro vs Non-Metro Cities for HRA
City
HRA % of Basic
Classified As
Delhi / NCR (Noida, Gurgaon)
50%
Metro
Mumbai / Navi Mumbai / Thane
50%
Metro
Kolkata
50%
Metro
Chennai
50%
Metro
Bengaluru / Hyderabad / Pune
40%
Non-Metro
Ahmedabad / Jaipur / Lucknow
40%
Non-Metro
All other cities & towns
40%
Non-Metro
⚠️ Note: Only Delhi, Mumbai, Kolkata and Chennai are classified as "Metro" for HRA purposes under Section 10(13A). Bengaluru, Hyderabad, Pune etc. are treated as Non-Metro despite being major cities.
❓ Frequently Asked Questions
What is HRA and who can claim it?▼
HRA (House Rent Allowance) is a component of your salary given by your employer to help cover rent expenses. You can claim HRA exemption if: (1) You are a salaried employee, (2) You actually pay rent for accommodation, (3) You are NOT a homeowner in the city where you work, (4) You choose the Old Tax Regime. Self-employed individuals cannot claim HRA but can claim rent deduction under Section 80GG.
Can I claim HRA if I own a house?▼
Yes! If you own a house in City A but work and live on rent in City B, you can claim HRA exemption for the rent paid in City B. However, if you own and live in the same city where you work, you cannot claim HRA. In that case, consider the home loan interest deduction under Section 24(b) instead.
What if my salary slip doesn't show HRA separately?▼
If your employer does not provide HRA as a separate allowance, you cannot claim HRA exemption. However, you can still claim rent deduction under Section 80GG up to ₹60,000/year (₹5,000/month), subject to conditions. This is available to both salaried (without HRA) and self-employed individuals.
Is HRA fully tax-free?▼
No. Only a portion of HRA is tax-free, calculated as the minimum of 3 values (as shown above). The remaining HRA (called "taxable HRA") is added to your income and taxed at your slab rate. Use our calculator above to find exactly how much of your HRA is tax-free vs taxable.
Can husband and wife both claim HRA for the same house?▼
This is a grey area. Technically both can claim HRA if one pays rent to a landlord and the other also contributes, but they must have separate rent agreements or receipts. However, in practice it is risky and may attract scrutiny. It is generally safer for only one person to claim HRA for a single rented accommodation.
How to claim HRA when filing ITR?▼
Step 1: Submit rent receipts and rent agreement to your employer during the tax proof submission period (usually Jan–Feb). Your employer will calculate the exemption and reflect it in Form 16. Step 2: When filing ITR, check that the HRA exemption amount in your Form 16 matches your calculation. Step 3: If your employer did not give the full exemption, you can still claim it directly in your ITR by entering the correct exempt HRA amount in the Exempt Allowances section.