HRA Exemption Calculator — How Much HRA is Tax-Free?
Calculate your House Rent Allowance exemption using the correct three-condition formula. Old tax regime only — HRA exemption is not available in the new regime.
🔒 your calculator inputs never leave this device
🏙️ Important — Correct Metro Cities: Under the Income Tax Act, metro cities = Delhi, Mumbai, Chennai, Kolkata ONLY. Bangalore, Pune, Hyderabad, Ahmedabad are NOT metros for HRA purposes, even though they are large cities. Using the wrong city type is a common error.
🏠 Enter Your HRA Details
₹
₹
As per your payslip
₹
✅ Metro — 50% cap
HRA Exemption Breakdown (Annual)
📌 Remember: If rent paid exceeds ₹1 lakh per year (₹8,333/month), your landlord's PAN is mandatory to claim HRA exemption.
Frequently Asked Questions
HRA exemption = minimum of: (1) Actual HRA received, (2) 50% of basic salary (metro) or 40% (non-metro), and (3) Rent paid minus 10% of basic salary. HRA exemption is the lowest of these three values.
Under the Income Tax Act Section 10(13A), only 4 cities qualify as metro for HRA purposes — giving employees a 50% cap:
✅ Metro (50% cap): Delhi, Mumbai, Kolkata, Chennai — plus their extensions: Gurgaon, Noida, Faridabad, Ghaziabad (Delhi NCR) and Navi Mumbai, Thane (Mumbai metro area).
❌ Non-Metro (40% cap): Bangalore, Hyderabad, Pune, Ahmedabad, Surat, Jaipur, Kochi, Chandigarh, Indore, Coimbatore, and all other cities.
This list has not changed since 1961, despite multiple petitions to include Bangalore and Hyderabad.
✅ Metro (50% cap): Delhi, Mumbai, Kolkata, Chennai — plus their extensions: Gurgaon, Noida, Faridabad, Ghaziabad (Delhi NCR) and Navi Mumbai, Thane (Mumbai metro area).
❌ Non-Metro (40% cap): Bangalore, Hyderabad, Pune, Ahmedabad, Surat, Jaipur, Kochi, Chandigarh, Indore, Coimbatore, and all other cities.
This list has not changed since 1961, despite multiple petitions to include Bangalore and Hyderabad.
No. HRA exemption is only available under the old tax regime. If you opt for the new tax regime, you cannot claim HRA exemption regardless of how much rent you pay or HRA you receive.
Yes! You can pay rent to parents and claim HRA, provided: (1) You have a proper rent agreement, (2) You pay rent via bank transfer, and (3) Your parents declare the rental income in their ITR. This is legal and commonly used tax planning.