HRA Calculator - Calculate House Rent Allowance Exemption
Calculate your HRA exemption amount for income tax. Find out how much of your House Rent Allowance is tax-free based on the 3-rule formula.
Calculate HRA
Monthly basic salary
Monthly HRA from employer
Actual monthly rent you pay
Metro cities get higher exemption
Annual HRA Exemption
₹1,80,000
Taxable HRA
₹1,20,000
Rule 1: Actual HRA
₹3,00,000
Rule 2: Rent - 10% Basic
₹1,80,000
Rule 3: 50%/40% of Basic
₹3,00,000
How to Use This HRA Calculator
Using our HRA Calculator is simple and takes just a few seconds. Enter your values using the sliders or input fields above, and the results will update instantly — no need to click a calculate button.
All calculations are performed in your browser using standard financial formulas. Your data is never stored or transmitted to any server, ensuring complete privacy.
The results shown are estimates based on the inputs you provide. For precise figures, consult with your bank or financial advisor. Use this tool for quick comparisons, planning, and understanding how different variables affect your financial outcomes.
Formula & Explanation
HRA Exemption = Minimum of (Actual HRA, Rent - 10% of Basic, 50%/40% of Basic)HRA exemption is the LOWEST of: Rule 1 — Actual HRA received from employer. Rule 2 — Actual rent paid minus 10% of basic salary. Rule 3 — 50% of basic salary (metro cities: Delhi, Mumbai, Chennai, Kolkata) or 40% of basic (non-metro). The remaining HRA above exemption is taxable.
Calculation Examples
Metro Employee
Basic ₹50K, HRA ₹25K, Rent ₹20K (Mumbai)
Exemption: ₹1,80,000/year | Taxable HRA: ₹1,20,000
Non-Metro Employee
Basic ₹35K, HRA ₹14K, Rent ₹12K (Pune)
Exemption: ₹1,02,000/year
Benefits
- Know exact HRA exemption
- See all 3 rules compared
- Plan rent for max tax saving
- Old vs new regime decision
- Avoid over/under claiming
Use Cases
- Annual tax planning
- Rent optimization
- Salary structure planning
- ITR filing
- Tax regime comparison
About HRA Calculator
Our HRA Calculator helps salaried employees calculate the exact House Rent Allowance exemption they can claim under Section 10(13A). HRA exemption is the minimum of three rules — this calculator shows all three and picks the lowest, helping you plan rent payments for maximum tax savings.
Frequently Asked Questions
No, HRA exemption is only available if you actually pay rent. If you live in your own house or don't pay rent, the entire HRA received is taxable. However, you can claim home loan interest deduction separately.
Yes, if you have a home loan on a property in one city but pay rent in another city (e.g., own house in hometown, renting in work city), you can claim both HRA exemption and home loan interest deduction under Section 24(b).
Rent receipts are mandatory if annual rent exceeds ₹1 lakh. You also need the landlord's PAN if annual rent exceeds ₹1 lakh. For rent below ₹1 lakh/year, a self-declaration may suffice.
No, HRA exemption is NOT available under the new tax regime (FY 2025-26). It's only available under the old regime. This is one of the key deductions that makes the old regime beneficial for those paying high rent.