Reviewed by Artha Research·Last updated 8 April 2026
HRA Exemption Calculator
Calculate the HRA exemption under the old tax regime using the classic three-limb rule.
Your salary & rent
Enter your monthly salary components and rent paid. The three-limb rule picks the binding exemption.
HRA exempt from tax (annual)
₹3L
₹25,000 exempt per month
The binding limb is the actual HRA received — the other two are higher.
Keep rent receipts and (if rent > ₹1L/year) the landlord's PAN ready before filing.
Actual HRA
₹3L
50% of salary
₹3L
Rent − 10% salary
₹3L
Final exemption
₹3L
Taxable HRA
₹0
Breakdown
- Actual HRA received₹3L33.3%
- 50% of salary₹3L33.3%
- Rent paid − 10% of salary₹3L33.3%
Meaningful HRA exemption worth claiming
Keep rent receipts, landlord PAN (if rent > ₹1L/year), and the rental agreement. The old regime lets you claim this exemption.
Next best actions
The result hints at what to look at next. Each link carries your current numbers so you never re-enter them.
At a glance
- What it does
- Computes the maximum HRA tax exemption you can claim in the old regime using the three-limb rule (actual HRA, 50%/40% of salary, and rent minus 10% of salary).
- Metro vs non-metro
- 50% of basic+DA for Delhi, Mumbai, Kolkata, Chennai. 40% for every other city (including Bengaluru, Hyderabad, Pune).
- Typical output
- On ₹50,000 basic + ₹25,000 HRA + ₹30,000 rent in a metro, the annual HRA exemption is ₹3L — and ₹60k of HRA remains taxable.
- Best used for
- Stress-testing the old regime benefit before choosing it, and computing rent receipts you need to justify at filing time.
How It Works
This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.
- HRA exemption = minimum of: (1) actual HRA received, (2) 50% of salary for metro (40% for non-metro), (3) rent paid − 10% of salary.
- Salary here means basic pay plus dearness allowance (DA), excluding other components.
- Only the old tax regime allows HRA exemption — the new regime does not.
Assumptions
The recommendation stays blunt, but the assumptions remain visible.
- Metro cities for HRA purposes are Delhi, Mumbai, Kolkata, and Chennai. Bengaluru, Hyderabad, and Pune are technically non-metro.
- Rent receipts are required; landlord PAN is mandatory when annual rent exceeds ₹1L.
- This exemption is only claimable when you actually pay rent and are not living in your own property.
FAQ
The follow-up questions people usually ask after the main recommendation is already clear.
Can I claim HRA exemption in the new tax regime?
No. Section 115BAC (the new regime) removes most deductions, including HRA. If HRA is a meaningful chunk of your tax savings, the old regime is usually better.
Can I claim HRA if I pay rent to my parents?
Yes, if the arrangement is genuine: your parents must own the property, you must actually pay rent, and they must declare it as income. Keep rent receipts and a rental agreement.
Is Bengaluru a metro for HRA?
No — for HRA purposes, only Delhi, Mumbai, Kolkata, and Chennai count as metro. Bengaluru uses the 40% limb despite being a major city.
Sources & references
Every formula and assumption above is grounded in these authoritative sources.
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