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finance2026-07-163 min read
How to Calculate HRA Exemption: Tax Rules
Learn how House Rent Allowance (HRA) tax exemption is calculated under Section 10(13A) of the Income Tax Act with 3 simple rules.
Salaried individuals living in rented accommodations can claim HRA exemption to lower their taxable income.
The 3 Rules of HRA Exemption The exempt HRA is the minimum of the following three amounts: 1. Actual HRA received from the employer. 2. 50% of basic salary (for metro cities) or 40% (for non-metros). 3. Actual rent paid minus 10% of basic salary.
Calculate your tax-exempt house rent allowance instantly using our HRA Calculator.