HRA Calculator – House Rent Allowance Exemption Calculator
Find out how much of your HRA is tax-exempt under the Income Tax Act.
HRA Exemption (per month)
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Taxable HRA (per month)
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Rule Breakdown
How Does the HRA Exemption Calculator Work?
House Rent Allowance (HRA) is a component of salary provided by employers to help employees meet rental housing expenses. Under Section 10(13A) of the Income Tax Act read with Rule 2A, a portion of your HRA can be claimed as a tax exemption, provided you actually pay rent for your accommodation.
The exempt amount is the minimum of three values calculated each month: (1) the actual HRA received from your employer, (2) the rent you pay minus 10% of your basic salary, and (3) 50% of your basic salary if you live in a metro city (Delhi, Mumbai, Chennai, or Kolkata) or 40% if you live in a non-metro city. Whichever rule produces the smallest figure becomes your exempt HRA for that period.
The remaining HRA, after subtracting the exemption, is added to your taxable income and taxed at your applicable income-tax slab rate. To claim this exemption you must be a salaried individual, actually pay rent, and not own the property you are renting. If rent exceeds ₹1,00,000 per year, the landlord's PAN must be provided to the employer.
This calculator highlights which of the three rules determines your exemption so you can understand exactly how your tax benefit is derived. Adjust the inputs to compare scenarios such as changing cities, renegotiating rent, or evaluating a salary restructuring offer from your employer.
This calculator is for informational purposes only and does not constitute financial, tax, or investment advice. Consult a qualified professional before making any financial decisions. Results are estimates based on the inputs provided and may not reflect actual outcomes.
Frequently Asked Questions
What is HRA exemption?
HRA exemption is the portion of House Rent Allowance received from your employer that is exempt from income tax under Section 10(13A) of the Income Tax Act, provided you actually pay rent for your accommodation.
How is HRA exemption calculated?
HRA exemption is the minimum of three values: (1) actual HRA received, (2) rent paid minus 10% of basic salary, and (3) 50% of basic salary for metro cities or 40% for non-metro cities.
Can I claim HRA if I live in my own house?
No, you cannot claim HRA exemption if you live in your own house. The exemption requires you to actually pay rent for your accommodation. You must not own the property you are residing in to claim the benefit.
What is the difference between metro and non-metro HRA?
For metro cities (Delhi, Mumbai, Chennai, Kolkata), the HRA exemption cap is 50% of basic salary. For non-metro cities, it is 40% of basic salary. This is one of the three rules used to determine exemption; the lowest value among all three applies.