HRA Exemption Calculator

How much of your HRA is tax-exempt.

Overview

Calculates the tax-exempt House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act to minimize taxable salary income.

Formula & Calculation Method

Exempt HRA = Minimum of: (1) Actual HRA received, (2) Rent paid - 10% of Basic, (3) 50% of Basic (Metro) or 40% (Non-Metro)

Taxable HRA equals total HRA received minus the calculated exempt HRA amount. Metro cities are Delhi, Mumbai, Kolkata, and Chennai.

Worked Example: Salaried Employee in Metro Paying ₹25,000 Monthly Rent

Inputs: Basic Salary = ₹60,000/mo | HRA Received = ₹30,000/mo | Rent Paid = ₹25,000/mo | Location = Metro

  • Condition 1: Actual HRA received = ₹30,000
  • Condition 2: Rent paid minus 10% basic = ₹25,000 - (10% of ₹60,000) = ₹25,000 - ₹6,000 = ₹19,000
  • Condition 3: 50% of basic salary = 50% of ₹60,000 = ₹30,000
  • Exempt HRA is the lowest figure = ₹19,000 per month (₹2,28,000 annually)

Summary: Annual HRA Received = ₹3,60,000 | Tax-Exempt HRA = ₹2,28,000 | Taxable HRA = ₹1,32,000

Common Use Cases

  • Income Tax Declaration: Submit accurate HRA rent proofs to employer payroll portals before February cutoffs.
  • Rent Optimization: Calculate how much rent you need to pay to claim 100% of your allotted HRA tax-free.
  • Old vs New Regime Decision: Determine if substantial HRA exemptions make the Old Tax Regime more beneficial.

Frequently Asked Questions

Which cities qualify for the 50% metro HRA rule?

Under Income Tax rules, only Mumbai, Delhi, Kolkata, and Chennai qualify for 50%; all other cities (including Bengaluru and Hyderabad) are 40%.

Is landlord PAN mandatory for claiming HRA?

Yes, if annual rent paid exceeds ₹1,00,000 (roughly ₹8,333/month), landlord's PAN must be submitted.

Can I pay rent to my parents and claim HRA?

Yes, provided parents own the property, you execute a genuine rental agreement, and parents declare rental income in their tax returns.

Related Calculators & Tools

  • EMI Calculator - Work out your monthly loan instalment from principal, rate and tenure.
  • SIP Calculator - Project the maturity value of a monthly SIP investment.
  • GST Calculator - Add or remove GST from an amount at any slab rate.
  • FD Calculator - Estimate fixed deposit maturity with compounding.
  • Loan Calculator - Compare total interest and payoff across loan terms.
  • Income Tax Calculator - Estimate tax payable under the old and new regimes (FY 2026-27 slabs).