What is a HRA Calculator?
House Rent Allowance exemption (available only under the old tax regime) is the least of three separate amounts — not simply the rent you pay or the HRA your employer gives you. That "minimum of three" rule is what trips most people up when estimating it by hand.
Enter your Basic + DA, the HRA you actually receive, the rent you pay, and whether you live in a metro city (Delhi, Mumbai, Kolkata or Chennai) to see the exempt and taxable portions.
How the exemption is calculated
Whichever of the three is smallest becomes your exempt amount; the rest of your HRA is added back to your taxable salary. Basic here means Basic + Dearness Allowance (DA), not your full CTC.
Frequently asked questions
Which cities count as "metro" for this rule?
Only Delhi, Mumbai, Kolkata and Chennai get the higher 50% exemption ceiling. Every other city — including Bengaluru, Hyderabad, Pune and Ahmedabad — uses the 40% ceiling, regardless of how expensive rent actually is there.
Can I claim HRA exemption under the new tax regime?
No — HRA exemption is only available if you’ve opted for the old tax regime. Under the new regime, your full HRA is taxable as regular salary income.
What if I don’t pay any rent?
Then your exemption is zero — the "rent paid minus 10% of Basic" term becomes zero or negative, which makes it the minimum of the three, regardless of your HRA or Basic.
Do I need rent receipts?
Yes, and a PAN of the landlord if your annual rent exceeds ₹1 lakh — your employer will typically ask for these to process the exemption in your Form 16.