Calculate exactly how much HRA is tax-free under the Old Regime. Shows the full breakdown of all 3 calculations required by the Income Tax Act. Instant result, no signup.
💡 Basic salary = Basic pay + DA (if retirement-linked). Does NOT include allowances or bonuses.
HRA (House Rent Allowance) exemption under Section 10(13A) of the Income Tax Act is calculated as the least of the following three amounts:
Whichever of the three is lowest, that amount is tax-exempt. The remaining HRA (if any) is taxable along with your salary.
Only four cities are classified as "metro" for HRA calculation under Section 10(13A): Delhi, Mumbai, Chennai, Kolkata. All other Indian cities — including Bengaluru, Hyderabad, Pune, Ahmedabad, Jaipur, Gurgaon, Noida — are "non-metro" and get 40% instead of 50%. This classification is a quirk of the Income Tax Act and doesn't match how "metro city" is defined elsewhere.
HRA exemption is only available under the Old Tax Regime. The New Regime (default from FY 2023-24) removes HRA, 80C and most other exemptions in exchange for lower tax slabs. If you pay significant rent and have 80C/HRA/home loan benefits, the Old Regime is usually still better. Use our CTC to In-Hand Calculator to compare both regimes side-by-side.
Least of three: (1) actual HRA received, (2) rent paid − 10% of basic salary, (3) 50% of basic (metro) or 40% (non-metro). The lowest of the three is tax-exempt.
Only Delhi, Mumbai, Chennai, Kolkata. Everything else — including Bengaluru, Hyderabad, Pune, Ahmedabad — is non-metro (40%).
No. HRA exemption is only in the Old Regime.
Basic pay + Dearness Allowance (if retirement-linked) + commission on turnover. Does NOT include other allowances or bonuses.
Yes — mandatory. Submit to your employer during tax proof window (Jan–Feb) or keep for ITR filing. Use our Rent Receipt Generator.