HRA Exemption Calculator

Calculate HRA exemption under Indian income tax rules. Shows all 3 rules and the minimum exemption amount.

Last updated: June 1, 2026

Basic Salary (₹/month)

HRA Received (₹/month)

Rent Paid (₹/month)

City Type

HRA Exemption Rules (Annual)

1. Actual HRA received₹2,40,000

2. 50% of Basic Salary₹3,00,000

3. Rent paid − 10% of Basic₹1,20,000

HRA Exemption (Annual)

₹1,20,000

Taxable HRA (Annual)

₹1,20,000

What is HRA Calculator?

An HRA (House Rent Allowance) exemption calculator determines how much of your HRA is tax-exempt under Indian income tax rules. HRA is a salary component for employees living in rented accommodation. The tax exemption is the minimum of three values: actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary (metro cities) or 40% (non-metro). This three-way minimum calculation is confusing to do manually, but crucial for accurate tax planning since HRA exemption can save thousands in taxes annually.

How It Works

Enter your basic salary, HRA received, actual rent paid, and city type (metro or non-metro). The tool calculates all three conditions: (1) actual HRA received from employer, (2) rent paid minus 10% of basic salary, and (3) 50% of basic for metro cities or 40% for non-metro. The exemption is the minimum of these three values. The remaining HRA (total received minus exempt amount) is taxable. The tool clearly shows all three calculations and which one determines your exemption.

Common Use Cases

•Calculating HRA tax exemption for income tax return filing and advance tax estimation
•Optimizing salary structure by understanding the tax benefit of different HRA amounts
•Deciding whether to claim HRA exemption or home loan deduction when you have both
•Planning rent expenditure to maximize tax benefit within the HRA exemption formula
•Verifying employer's HRA exemption calculation on Form 16 for accuracy
•Comparing tax impact between metro and non-metro city residence for relocation decisions