HRA calculator: House rent allowance exemption

Q: At what rent amount does the landlord's PAN become required?

Only when annual rent crosses ₹1 lakh. Income tax rules set that threshold. No PAN? A signed declaration with rent receipts works instead.

Calculate your exact HRA tax exemption under Section 10(13A). Supports mid-year job changes with different salaries, cities, and rent amounts.

Last updated: May 2026

HRA Calculator: House rent allowance exemption calculator

HRA is one of the larger components in a salaried employee's pay package in India. Under Section 10(13A) of the Income Tax Act, part of what you receive as HRA is tax-exempt. This means you save significant income tax by renting your home.

The challenge is figuring out the exact tax-free portion because the government applies three separate rules. Changed jobs mid-year or moved cities? The calculations get more complicated. This tool runs all three formulas instantly to show your exact exemption.

How can an online HRA calculator help you?

Rent paid to a landlord reduces your tax liability, but the HRA rules require precise monthly calculations.

Here is what this calculator does for you.

✓Calculate your exact tax-exempt HRA portion instantly.
✓Find out the taxable portion of your House Rent Allowance.
✓Supports multiple employers for mid-year job switches.
✓Handles metro and non-metro city calculations side by side.
✓Completely free to use with zero logins or registration steps.

This HRA calculator removes all the guesswork. If you want to calculate rent tax exemption for any salary structure (metro or non-metro cities, single or multiple employers). Just enter your salary, rent, and city details above.

How to use this HRA calculator

Provide your basic salary, HRA component, and monthly rent paid. Enable the mid-year switch option if you changed employers. The tax-free allowance displays right away. No login needed.

The formula to calculate HRA exemption (Section 10(13a))

The HRA exemption is the minimum of three distinct calculations specified by tax laws.

Calculation rule	Formula representation
Rule 1	Actual HRA received
Rule 2	50% of Basic (Metro) OR 40% of Basic (Non-Metro)
Rule 3	Rent paid − (10% of Basic salary)

This calculator computes all three rules for every month. Put in your numbers above and the minimum shows up as your tax-exempt HRA.

Factors affecting your HRA exemption

Four components determine how much HRA is tax-exempt. Change any one value and the calculation shifts. Adjust the inputs above to see this in real time.

Basic salary

Basic salary is the primary anchor. Since Rules 2 and 3 calculate percentages of your basic pay, a higher basic salary can reduce your exemption under Rule 3.

Actual HRA received

This acts as the absolute ceiling. You cannot claim more HRA exemption than the actual allowance paid by your employer.

Rent paid

Rent paid directly impacts your exemption. If your monthly rent is less than 10% of your monthly basic salary, your HRA tax exemption drops to zero.

City of residence

Your city decides the cap. Metros allow up to 50% of basic salary. Non-metro cities work on 40% instead. Metro or non-metro. That single label changes your exemption cap. Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Pune, Hyderabad, and Ahmedabad are metro. Every other city is not.

Worked example

Take a Mumbai-based employee. Basic salary Rs. 40,000 a month, HRA received Rs. 20,000, rent paid Rs. 18,000. Mumbai is metro, so the 50% basic cap applies.

Calculation rule	Monthly value	Annualized
Rule 1: Actual HRA	Rs. 20,000	Rs. 2,40,000
Rule 2: 50% of Basic	Rs. 20,000	Rs. 2,40,000
Rule 3: Rent - 10% of Basic	Rs. 14,000	Rs. 1,68,000
Final HRA exemption (Min)	Rs. 14,000	Rs. 1,68,000

Out of Rs. 2,40,000 received as HRA for the year, Rs. 1,68,000 is tax-free. The remaining Rs. 72,000 gets added to taxable salary.

Frequently asked questions

Is HRA claimable if the house is yours?

Not applicable. HRA exemption requires actual rent paid on a property you do not own. No rent means no exemption. The full HRA amount becomes taxable under Section 10(13A).

Why does rent paid to parents qualify for HRA?

Parents are separate tax entities. If you pay them actual rent and they declare it as rental income in their returns, the exemption is valid. A formal rent agreement and bank transfer records are what tax authorities typically ask for during scrutiny.

HRA Vs Section 80gg: What is the difference?

Two different provisions, two different situations. HRA is a salary component your employer builds into the CTC. Section 80GG is for people who pay rent but do not receive HRA at all. That covers most self-employed individuals and salaried employees whose companies do not structure HRA into the pay. The deduction cap under 80GG is Rs. 5,000 per month.

At what rent amount does the landlord's pan become required?

Only when annual rent crosses Rs. 1 lakh. Income tax rules set that threshold. No PAN? A signed declaration with rent receipts works instead.

HRA And home loan interest: Can both be claimed together?

Yes, completely. This works if you rent in the city where you work but own a home in another city or one that is still under construction. HRA covers the rent paid, and Section 24(b) covers the home loan interest separately.

The calculator showed x but my employer exempted y. Why?

Employers check exact proof. If you failed to submit rent receipts on time or if your landlord's PAN was invalid, your employer will tax the full HRA. The correct exemption can still be claimed directly when filing the ITR.

Mid-year job change or city move: How does that work?

Split calculations are required. The HRA exemption is worked out separately for each employment period because the basic salary, HRA component, city type, and rent can all change. The calculator handles these multi-period situations automatically.

Is HRA exemption available under the new tax regime?

No. The new regime removes almost all popular tax exemptions in exchange for lower tax slab rates. If you pay substantial rent, you should compare both regimes using our CTC Calculator to see which one saves you more money.

See how a mid-year job switch impacts HRA in a real example below!

Mid-year job switch: Example calculation

When an employee switches jobs mid-year, the HRA exemption must be split into separate periods. Here is a step-by-step example of a developer who switched jobs in October, moving to a new city with a different salary structure.

🏢 Employer 1 (APR – sep, 6 months)

City: Jaipur (Non-Metro)
Monthly Basic: Rs. 50,000
Monthly HRA received: Rs. 20,000
Monthly Rent paid: Rs. 18,000

🏢 Employer 2 (oct – mar, 6 months)

City: Mumbai (Metro)
Monthly Basic: Rs. 70,000
Monthly HRA received: Rs. 30,000
Monthly Rent paid: Rs. 28,000

Calculation for employer 1 (6 months, non-metro):

Annual Basic (6m) = Rs. 50,000 × 6 = Rs. 3,00,000

Annual HRA (6m) = Rs. 20,000 × 6 = Rs. 1,20,000

Annual Rent (6m) = Rs. 18,000 × 6 = Rs. 1,08,000

Rule 1 (HRA received) = Rs. 1,20,000

Rule 2 (40% of Basic) = Rs. 1,20,000

Rule 3 (Rent - 10% of Basic) = Rs. 1,08,000 − Rs. 30,000 = Rs. 78,000

Exemption (Employer 1) = Min(Rs. 1,20,000, Rs. 1,20,000, Rs. 78,000) = Rs. 78,000

Calculation for employer 2 (6 months, metro):

Annual Basic (6m) = Rs. 70,000 × 6 = Rs. 4,20,000

Annual HRA (6m) = Rs. 30,000 × 6 = Rs. 1,80,000

Annual Rent (6m) = Rs. 28,000 × 6 = Rs. 1,68,000

Rule 1 (HRA received) = Rs. 1,80,000

Rule 2 (50% of Basic) = Rs. 2,10,000

Rule 3 (Rent - 10% of Basic) = Rs. 1,68,000 − Rs. 42,000 = Rs. 1,26,000

Exemption (Employer 2) = Min(Rs. 1,80,000, Rs. 2,10,000, Rs. 1,26,000) = Rs. 1,26,000

Total HRA received

Rs. 3,00,000

Total HRA Exempt

Rs. 2,04,000

Taxable HRA

Rs. 96,000

Out of Rs. 3,00,000 HRA received, Rs. 2,04,000 is tax-free, and Rs. 96,000 is taxable. Determining this manually requires running separate calculations with different city rules, basic salaries, and rents. The calculator completes the entire process instantly.

HRA exemption is only available under the Old tax regime. Use our CTC Calculator to see how the two regimes compare for your salary.

Important note

HRA exemption is only available under the Old tax regime. This calculator is for estimation purposes only. For precise tax filings, consult a chartered accountant. Actual exemption may vary based on actual rent receipts submitted and employer computation.

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This calculator is for informational purposes only and does not constitute financial, tax, or investment advice.