Does HRA exemption apply outside India?

No, House Rent Allowance and its tax exemption are specific to India's Income Tax Act, with no directly comparable structure elsewhere.

Can I claim HRA exemption if I don't pay rent?

No, if you do not pay rent you generally cannot claim an HRA exemption.

Is HRA exemption available under both tax regimes?

HRA exemption is available only under the old tax regime, not the new regime.

HRA Calculator

Calculate the House Rent Allowance exemption you can claim (India only)

Basic Salary (Monthly, ₹)

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HRA Received (Monthly, ₹)

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Actual Rent Paid (Monthly, ₹)

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City Type

What is the HRA Calculator?

House Rent Allowance (HRA) is a salary component many Indian employers pay toward an employee's rent, part of which can be exempt from income tax. This calculator is based on India's HRA tax exemption rules under the Income Tax Act and is not applicable outside India — most other countries handle housing costs and payroll allowances very differently, with no equivalent HRA exemption mechanism.

How to Use the HRA Calculator

Enter your monthly basic salary.
Enter the monthly HRA you actually receive from your employer.
Enter the actual monthly rent you pay.
Select your city type — metro cities (Delhi, Mumbai, Kolkata, Chennai) get a higher exemption percentage than non-metro cities.
Read the result — the annual HRA exemption and the remaining taxable portion, plus a breakdown of the three comparison amounts.

HRA Exemption Rule

Under Indian tax rules, the HRA exemption is the minimum of these three amounts:

1. Actual HRA received from employer
2. 50% of basic salary (metro city) or 40% of basic salary (non-metro city)
3. Actual rent paid minus 10% of basic salary

Example Calculation

An employee in Mumbai (a metro city) has a basic salary of ₹30,000/month, receives ₹15,000/month HRA, and pays ₹12,000/month rent. The three amounts are: (1) HRA received = ₹15,000, (2) 50% of basic = ₹15,000, (3) Rent − 10% of basic = ₹12,000 − ₹3,000 = ₹9,000. The exemption is the minimum of these three: ₹9,000/month, or ₹1,08,000 for the year. The remaining ₹6,000/month of HRA received is taxable.

Frequently Asked Questions

No, House Rent Allowance and its tax exemption are specific to India's Income Tax Act. Employees in the US, UK, Canada or Australia don't have a directly comparable payroll allowance or exemption structure.

No. If you don't pay rent (for example, you live in your own home), you generally can't claim an HRA exemption, since one of the three comparison amounts — rent paid minus 10% of basic — would be zero or negative.

HRA exemption is available only under the old tax regime. Under the new (default) tax regime, most exemptions and deductions, including HRA, are not available. Check the Income Tax Calculator to compare both regimes.

Results are estimates for general reference only, not tax advice — confirm your exact exemption with a tax professional or your employer's payroll team.