HRA Exemption Calculator (Metro & Non-Metro)
See exactly how to calculate the tax-free part of your House Rent Allowance under Section 10(13A) — with the metro / non-metro rule applied automatically. (Note: HRA is not allowed in the new tax regime.)
Your HRA exemption
Tax-free (exempt)
₹0
per year · ₹0/mo
Taxable HRA
₹0
per year · ₹0/mo
Why this amount?
Your exemption is the least of these three legal limits — the shortest bar wins.
Next step: generate your rent receipts
You'll need monthly receipts as proof for this HRA claim. Create a full financial year in seconds — free.
How to calculate HRA exemption
House Rent Allowance (HRA) is a common part of a salaried employee's pay, and a portion of it is exempt from income tax under Section 10(13A) of the Income Tax Act. The catch is that HRA is not fully tax-free — the exempt amount is the least of the following three:
- The actual HRA you receive from your employer.
- The rent you pay minus 10% of your salary (basic + DA).
- 50% of your salary if you live in a metro city, or 40% if you live in a non-metro city.
Whichever of these is smallest becomes your exempt HRA; the remaining amount is added to your taxable income. This calculator computes all three limits for you and highlights the winning one.
What counts as "salary" for HRA?
For this calculation, salary = basic pay + dearness allowance (DA) (where DA forms part of retirement benefits) + any commission that is a fixed percentage of turnover. Most private-sector employees have no DA or commission, so their salary for HRA purposes is simply the basic pay shown on the salary slip.
Which cities are "metro" for HRA?
For HRA, only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities and qualify for the higher 50% limit. Every other city in India — including Bengaluru, Hyderabad, Pune, Ahmedabad and Gurgaon — is treated as non-metro, where the limit is 40% of salary. This is a common point of confusion, so the calculator makes the choice explicit.
HRA in the new tax regime
Important: the HRA exemption is a feature of the old tax regime only. If you opt for thenew tax regime, your House Rent Allowance is fully taxable and Section 10(13A) does not apply. Because HRA can be a large exemption for tenants, it is often the deciding factor when youcompare the old and new regimes — run both before you choose.
Documents you need to claim HRA
To claim the exemption, keep monthly rent receipts for the full year. If your annual rent is above ₹1,00,000, you must also report your landlord's PAN to your employer. You can create a whole year of receipts in seconds with our free Rent Receipt Generator.
Frequently asked questions
How is HRA exemption calculated?
Under Section 10(13A), the tax-free portion of your HRA is the least of three amounts: (1) the actual HRA you receive, (2) the rent you pay minus 10% of your salary (basic + DA), and (3) 50% of your salary if you live in a metro city, or 40% if you live anywhere else. Whichever of these three is smallest is your exempt amount; the rest of your HRA is taxable.
What counts as "salary" for the HRA calculation?
For HRA, salary means your basic salary plus dearness allowance (DA), if the DA forms part of your retirement benefits, plus any commission that is a fixed percentage of turnover. For most private-sector employees who receive no DA or commission, salary is simply the basic pay.
Which cities are treated as metro cities for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are metro cities for HRA, and they qualify for the 50% limit. Every other city — including Bengaluru, Hyderabad, Pune, Ahmedabad and Gurgaon — is treated as non-metro, where the limit is 40% of salary.
Can I claim HRA and a home loan at the same time?
Yes. If you have genuinely taken a home loan for one property and pay rent for the house you actually live in (for example, in a different city), you can claim both the HRA exemption and the home loan interest deduction under Section 24. The claims should reflect your real situation.
What if I do not receive HRA from my employer?
If you pay rent but your salary does not include an HRA component (or you are self-employed), you cannot use Section 10(13A). Instead you may be able to claim a deduction under Section 80GG, subject to its own limits and conditions.
Do I need rent receipts to claim HRA?
Yes. Employers require rent receipts as proof, and if your total rent for the year exceeds Rs 1,00,000 you must also report your landlord’s PAN. You can create a full year of receipts for free with our Rent Receipt Generator.
Is HRA exemption available in the new tax regime?
No. The HRA exemption under Section 10(13A) is only available in the old tax regime. If you opt for the new tax regime, your entire House Rent Allowance is fully taxable and this exemption does not apply. So HRA is a key reason many tenants still compare the old regime before choosing.
Is Bangalore or Hyderabad a metro city for HRA?
No. For HRA, only Delhi, Mumbai, Kolkata and Chennai count as metro cities (50% of salary limit). Bangalore (Bengaluru) and Hyderabad are treated as non-metro cities, so their HRA limit is 40% of salary — even though they are large metropolitan areas in every other sense.
What percentage of salary is HRA?
Employers typically set HRA at 40% to 50% of your basic salary, though there is no fixed legal percentage. For the tax exemption, what matters is not the percentage but the least of the three limits under Section 10(13A) — actual HRA, rent minus 10% of salary, and 50% (metro) or 40% (non-metro) of salary.