HRA Calculator — Calculate House Rent Allowance Exemption
Calculate your exact HRA tax exemption under Section 10(13A). Enter basic salary, HRA received, and rent paid — get the tax-free HRA amount, taxable portion, and estimated tax savings at each slab rate. Old tax regime only. Free, instant, no sign-up.
This HRA calculator applies the three-condition formula prescribed under Section 10(13A) of the Income Tax Act read with Rule 2A of the Income Tax Rules. Metro city classification (Delhi, Mumbai, Kolkata, Chennai) follows the statutory definition. PAN requirement for rent above ₹1 lakh per year per CBDT Circular No. 08/2013. HRA exemption is unavailable under the new tax regime per Finance Act 2020. All calculations are client-side. Last reviewed: June 2026.
HRA Calculator India — Section 10(13A) Exemption Explained
For most Indian salaried employees paying rent, HRA (House Rent Allowance) exemption is the single largest tax-saving opportunity — often more valuable than the entire Section 80C investments combined. Yet calculating the exact exempt amount is confusing because it requires applying three different conditions and taking the minimum. This calculator does that instantly, shows you all three conditions, identifies which one is limiting your exemption, and tells you exactly how much you\'re saving in tax.
HRA exemption is governed by Section 10(13A) of the Income Tax Act read with Rule 2A of the Income Tax Rules, 1962. It is available exclusively under the old tax regime. Under the new regime (default from FY 2024-25), HRA is fully taxable as part of gross salary.
HRA Exemption Formula — All Three Conditions
Example: Basic ₹40,000/mo, HRA ₹20,000/mo, Rent ₹15,000/mo, Metro. C1 = ₹2,40,000 | C2 = ₹2,40,000 | C3 = (₹1,80,000 − ₹48,000) = ₹1,32,000. Exemption = ₹1,32,000. Taxable HRA = ₹2,40,000 − ₹1,32,000 = ₹1,08,000.
HRA Exemption Reference — Basic Salary vs Annual Rent (Metro)
| Monthly Basic | HRA (50%) | Rent ₹9K/mo | Rent ₹12K/mo | Rent ₹16K/mo | Rent ₹20K/mo |
|---|---|---|---|---|---|
| ₹25,000 | ₹12,500 | ₹78,000 | ₹1,14,000 | ₹1,50,000 | ₹1,50,000* |
| ₹40,000 | ₹20,000 | ₹60,000 | ₹96,000 | ₹1,44,000 | ₹1,92,000 |
| ₹60,000 | ₹30,000 | ₹36,000 | ₹72,000 | ₹1,20,000 | ₹1,68,000 |
| ₹80,000 | ₹40,000 | ₹12,000 | ₹48,000 | ₹96,000 | ₹1,44,000 |
| ₹1,00,000 | ₹50,000 | ₹0 | ₹24,000 | ₹72,000 | ₹1,20,000 |
*Capped by Condition 1 or 2 where applicable. Annual exemption amounts shown. Use calculator above for exact figures.
Which Condition Most Commonly Limits HRA Exemption?
Condition 3 limits most often — especially when your rent is low relative to your basic salary. The 10% of basic "floor" that must be subtracted can be significant: on ₹80,000 basic, you must pay more than ₹8,000/month in rent before Condition 3 becomes positive. Many employees in tier-2 cities pay rent of ₹8,000–₹12,000 on salaries where basic exceeds ₹50,000 — leaving Condition 3 far below Conditions 1 and 2, and severely limiting the exemption. Increasing your actual rent paid (into genuine accommodation) is the most direct way to increase your HRA exemption.
How HRA Affects Your Total Tax Picture
HRA exemption works alongside other old-regime deductions: Section 80C (₹1.5L limit — PF, PPF, ELSS, life insurance), Section 24(b) (home loan interest up to ₹2L for self-occupied), Professional Tax (₹2,400/year), and Standard Deduction (₹50,000). The combined effect can dramatically reduce your taxable income. Use our In-Hand Salary Calculator to see your complete tax picture under old and new regime and decide which saves you more.
Can I Claim HRA and Home Loan Deduction Together?
Yes — if you own a house in City A but work and rent in City B, you can simultaneously claim HRA exemption for rent paid in City B and the home loan interest deduction under Section 24(b) for the property in City A. This is a powerful combination for employees who have bought a house in their hometown but work in a different city. The IT Department has accepted such dual claims consistently when the circumstances are genuine. If both the owned property and rented accommodation are in the same city, the claim is harder to sustain unless you can demonstrate a genuine reason (significant distance, occupancy by dependents, etc.). For home loan calculations alongside HRA, use the Home Loan EMI Calculator.
HRA-Related Banking Tools You May Need
- In-Hand Salary Calculator — Compare total take-home under old vs new regime with HRA exemption factored in.
- TDS Calculator — Calculate TDS your employer should deduct after HRA exemption is applied.
- Home Loan EMI Calculator — If claiming both HRA and home loan interest deduction simultaneously.
- Gratuity Calculator — Other salary benefit to plan alongside HRA and EPF.
- IFSC Code Lookup — Needed when transferring rent to landlord bank account for NACH-linked rent payments.
HRA exemption formula per Income Tax Department Section 10(13A) and Rule 2A. PAN requirement per CBDT Circular 08/2013. Metro city classification per Income Tax Act statutory definition. New regime restriction per Finance Act 2020. Last reviewed Jun 2026 by BankZop Financial Editorial Team.