HRA Exemption Calculator: How Much Rent Is Tax-Free?

If you pay rent and get HRA, part of it is tax-exempt. This calculator shows how much — under the old regime.

What is it?

House Rent Allowance exemption reduces taxable salary for those who rent. It applies only under the old tax regime.

How is it calculated?

The exempt HRA is the least of: actual HRA received; rent paid minus 10% of basic; and 50% of basic (metro) or 40% (non-metro).

Example

On a ₹50,000 basic, ₹20,000 HRA and ₹18,000 rent in a metro, the exempt amount is about ₹13,000 a month.

Key things to know

• HRA exemption is only available in the old regime.
• Keep rent receipts and the landlord’s PAN if rent exceeds ₹1 lakh a year.
• Metro cities allow a higher (50%) limit.
• You can claim HRA and a home-loan benefit together in some cases.

What to do next

Compare old vs new regime to see if HRA tips the balance.

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Frequently asked questions

Is HRA fully tax-free?
No, only the least of the three formula amounts.

Available in the new regime?
No, only the old regime.

What if I live with parents?
You can pay them rent and claim HRA, with proper records.

Disclaimer: This article is for general information only and is not financial or tax advice. Consult a qualified advisor before making investment or tax decisions.