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HRA Exemption exact answer.

Section 10(13A) exemption — minimum of three conditions, metro vs non-metro rules, and the tax saved at your slab. Old regime only.

Your HRA exemption under Section 10(13A) is the minimum of three figures: actual HRA received, rent paid minus 10% of basic, and 50% of basic (metro) or 40% (non-metro). Whatever is lowest is tax-free — only under the old tax regime. This calculator computes all three and shows your exact exemption and tax saved. See how HRA fits your full package in the In-Hand Salary Calculator →
INPUTS
Metro = Delhi, Mumbai, Chennai, Kolkata only
ANNUAL HRA EXEMPTION
₹2,04,000
Tax saved ≈ ₹63,648 at 30% slab (incl. cess)
ALL 3 CONDITIONS (MIN WINS)
1.Actual HRA received₹3,00,000
2.Rent paid – 10% of (Basic + DA)₹2,04,000
3.50% of (Basic + DA)₹3,00,000
BREAKDOWN
HRA received (annual)₹3,00,000
Exempt portion₹2,04,000
Taxable HRA₹96,000

How HRA exemption works under Section 10(13A)

Your HRA exemption is the minimum of three values: the actual HRA you received, your annual rent minus 10% of (Basic + DA), and 50% of (Basic + DA) if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) or 40% for any other city — note that Bangalore, Hyderabad and Pune are treated as non-metro for this calculation.

HRA exemption is available only under the old tax regime. Under the new regime, HRA is fully taxable, so the exemption calculation does not apply.

Frequently asked questions

How much HRA is tax-free?
Your HRA exemption is the least of three figures: the actual HRA received, rent paid minus 10% of basic salary, and 50% of basic (metro) or 40% (non-metro). The lowest of the three is tax-free.
Can I claim HRA in the new tax regime?
No. The HRA exemption under Section 10(13A) is available only under the old tax regime. Under the new regime, HRA is fully taxable.
Are Bangalore, Hyderabad and Pune metros for HRA?
No. Only Delhi, Mumbai, Chennai and Kolkata count as metros (50% of basic). All other cities, including Bangalore, Hyderabad and Pune, use the 40% rate.

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HRA Exemption Calculator India 2026 — Section 10(13A) | ClearRound