Find out how much of your house rent allowance (HRA) is tax-free under the old tax regime.
HRA Exemption Calculator
Find out how much of your House Rent Allowance is tax-free under the old regime, with the full least-of-three working.
- HRA received (year)
- ₹2,40,000₹2.4 lakh
- Taxable HRA (year)
- ₹84,000
- HRA exemption is available only under the old tax regime.
- Rent is above ₹1 lakh a year, so your employer will usually ask for your landlord's PAN.
- Metro cities for HRA: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
Results are estimates for educational purposes only and are not financial, tax or legal advice. For more details, do consult a lawyer or a subject-matter expert.
Tax-free vs taxable HRA
View chart data as a table
| Tax-free | ₹1,56,000 |
|---|---|
| Taxable | ₹84,000 |
Least-of-three working (yearly)
The smallest of these three amounts is exempt (highlighted).
| Rule | Amount |
|---|---|
| (a) Actual HRA received | ₹2,40,000 |
| (b) Rent paid − 10% of basic + DA | ₹1,56,000 |
| (c) 50% of basic + DA (metro) | ₹3,00,000 |
Explain this result
Salary for HRA means basic + DA: ₹6,00,000 a year. You received ₹2,40,000 as HRA and paid ₹2,16,000 as rent.
The exemption is the least of: (a) actual HRA, (b) rent paid minus 10% of salary, and (c) 50% of salary for your city type. That gives ₹1,56,000 tax-free; the remaining ₹84,000 is added to your taxable salary.
Formula: Exempt = min(HRA, Rent − 10% × Salary, 50% × Salary)
Frequently asked questions
How is HRA exemption calculated?
The tax-free part is the lowest of three amounts: the HRA you actually receive, rent paid minus 10% of basic + DA, and 50% (metro) or 40% (other cities) of basic + DA.
Can I claim HRA in the new tax regime?
No. HRA exemption is available only if you choose the old tax regime.
Can I pay rent to my parents and claim HRA?
Yes, if you genuinely pay rent and your parent owns the house and shows the rent as income. Keep a rent agreement and bank-transfer proof.
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The rule
The exempt HRA is the lowest of:
- Actual HRA received.
- Rent paid minus 10% of salary (basic + DA).
- 50% of salary in metro cities, or 40% elsewhere.
Worked example
Basic ₹50,000 a month, HRA ₹20,000, rent ₹18,000 in a metro. Yearly: HRA ₹2,40,000; rent minus 10% of salary = ₹2,16,000 − ₹60,000 = ₹1,56,000; 50% of salary = ₹3,00,000. The lowest is ₹1,56,000, so ₹13,000 a month is tax-free and ₹84,000 a year is taxable.
Tips
- HRA exemption is not available under the new regime.
- If yearly rent is above ₹1 lakh, give your employer the landlord’s PAN.
- Keep rent receipts and a rent agreement; paying by bank transfer creates a clean record.
Plug the exempt amount into the income tax calculator to compare regimes.