HRA Calculator
How much of your House Rent Allowance is tax-free, using the standard three-way rule.
Which cities count as metro is set by the income tax rules. Check the current list, and choose Metro only if your city is on it.
The exemption is the lowest of these three amounts (per year):
| 1. Actual HRA received | — |
| 2. Rent paid minus 10% of salary | — |
| 3. 50% of salary (metro city) | — |
This is the HRA exemption available under the old tax regime and applies only if you actually pay rent. It is not available under the new regime. Tax rules change, so confirm with your employer's payroll team or a tax adviser. “Salary” here means basic pay plus dearness allowance that counts for retirement benefits, and commission fixed as a percentage of sales if any.
Frequently asked questions
How is HRA exemption calculated?
The exempt amount is the least of three figures: the actual HRA you receive, the rent you pay minus 10% of your salary, and 50% of your salary if you live in a metro city (40% elsewhere). Whatever HRA is left over is added to your taxable income.
What counts as salary for HRA?
Basic pay plus dearness allowance if it forms part of your pay for retirement benefits, plus any commission fixed as a percentage of turnover. Other allowances such as special allowance and bonus are not counted.
Can I claim HRA if I live with my parents?
You can if you actually pay rent to them, they declare it as income, and there is a genuine arrangement such as a rent agreement and payments by bank transfer. Keep records, because your employer or the tax department may ask for them.
Do I need the landlord's PAN?
Under the usual rules, if the rent you pay is above ₹1,00,000 in a year, you need to give your landlord's PAN to your employer to claim HRA. Check the current rules for any change.