HRA exemption calculator
How much of your house-rent allowance is actually tax-free.
Quick answer
An HRA calculator computes the tax-exempt portion of House Rent Allowance under India's old tax regime. Exemption is the least of: actual HRA, rent minus 10% of basic, or 50%/40% of basic for metro/non-metro cities.
Tax-free HRA
This much of your HRA escapes tax. The rest is added to your taxable income.
- Taxable HRA
- ₹60,000
HRA exemption only helps under the OLD regime. The new regime ignores it — worth checking both.
Rates & rules checked on 15 June 2026 · based on FY 2025-26 (AY 2026-27).
What this tells you
House Rent Allowance is one of the biggest tax savers for renters — but only part of it is exempt, and only under the old regime.
How it's calculated
The exemption is the least of three: actual HRA received, rent paid minus 10% of (Basic+DA), and 50% of (Basic+DA) for metros / 40% for non-metros. Whatever's left over is taxable.
Common questions
- Can I claim HRA in the new regime?
- No. The new regime removes the HRA exemption entirely. If you pay significant rent, run both regimes before deciding — HRA can tip the balance toward the old one.
- Can I claim HRA while paying rent to my parents?
- Yes, if you genuinely pay rent and they declare it as income. Keep proof — bank transfers and a rent agreement.
Jargon, explained
More tax tools
Sources
For general education, not personalised financial advice. Verify current rates and rules before acting — tax laws and interest rates change.