Which cities are metros for HRA?

Only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities for HRA, where the limit is 50% of basic plus DA. Every other city, including Bengaluru, Hyderabad and Pune, is non-metro at 40%.

Is HRA exemption available in the new tax regime?

No. The HRA exemption is available only under the old tax regime. Under the new regime it is not allowed, so compare both regimes before choosing.

Do I need my landlord's PAN to claim HRA?

If your total annual rent exceeds Rs 1,00,000, you must report the landlord's PAN. Below that, rent receipts and a rent agreement are usually enough.

HRA Exemption Calculator — House Rent Allowance Tax Exemption

Q: How is HRA exemption calculated?

HRA exemption is the least of three amounts: the actual HRA received, rent paid minus 10% of basic plus DA, and 50% of basic plus DA for a metro city or 40% for a non-metro city. Whatever is smallest is exempt from tax; the rest of the HRA is taxable.

A free HRA exemption calculator for salaried employees in India. Educational tool — confirm your figures with your payslip and Form 16.

Quick answer: Your tax-exempt HRA is the least of three: (1) the actual HRA you receive, (2) rent paid − 10% of (basic + DA), and (3) 50% of (basic + DA) in a metro city or 40% in a non-metro city. Whatever is smallest is exempt; the rest of your HRA is taxed. It applies only under the old tax regime. Enter your figures below.

HRA Exemption Calculator (monthly figures)

Basic + DA per month (Rs) HRA received per month (Rs) Rent paid per month (Rs) City

Exempt HRA / month—

Exempt HRA / year—

Taxable HRA / year—

HRA exemption is the least of three amounts — the actual HRA received, rent paid minus 10 percent of basic plus DA, and 50 percent of basic in a metro city or 40 percent in a non-metro city, and it is available only under the old tax regime

Your exemption is whichever of the three is smallest.

Key takeaways

Exempt HRA = least of actual HRA, rent − 10% of (basic+DA), and 50%/40% of (basic+DA).
Metro = 50% (Delhi, Mumbai, Kolkata, Chennai); everywhere else 40%.
Only under the old tax regime.
Landlord's PAN needed if annual rent exceeds Rs 1,00,000.

How HRA exemption is calculated

House Rent Allowance (HRA) is partly tax-free if you pay rent. The exempt portion is the least of these three:

the actual HRA your employer pays;
rent paid − 10% of (basic + DA); and
50% of (basic + DA) in a metro, or 40% in a non-metro city.

A worked example

Basic + DA ₹40,000/month, HRA ₹20,000, rent ₹18,000, in Chennai (metro): actual HRA = ₹20,000; rent − 10% = ₹18,000 − ₹4,000 = ₹14,000; 50% of basic = ₹20,000. The least is ₹14,000/month exempt (₹1,68,000/year), and the remaining ₹6,000/month of HRA is taxable.

Metro vs non-metro, and the old-regime rule

Only Delhi, Mumbai, Kolkata and Chennai count as metros (50%); every other city is 40%. And crucially, HRA exemption exists only under the old tax regime — under the new regime it's gone, so run both before you choose. If you changed jobs mid-year, the exemption is worked out period-by-period — our partner site explains this in HRA after a job switch and the full method in how HRA is calculated step by step.

Related calculators

Comparing regimes? See the Section 80D calculator and 234B/234C interest calculator. Quick maths? Use the percentage calculator.

Frequently asked questions

How is HRA exemption calculated?

Least of: actual HRA, rent − 10% of (basic+DA), and 50% (metro) / 40% (non-metro) of (basic+DA).

Which cities are metros?

Only Delhi, Mumbai, Kolkata and Chennai (50%); all others are 40%.

Is HRA allowed in the new regime?

No — only the old regime.

Do I need my landlord's PAN?

Yes if annual rent exceeds Rs 1,00,000; otherwise receipts and an agreement suffice.

About ComplyKraft. Built by Dinesh Kumar S in Chennai — B.Sc. Mathematics, M.Sc. IT. Free calculators and plain-language guides.

Disclaimer: Educational information only, not tax advice. Confirm your HRA exemption with your Form 16 and a tax professional where needed.