HRA Calculator

Calculating your HRA exemption takes less than a minute:

1. Enter your basic salary per month.
2. Enter the HRA received from your employer per month as part of your salary structure.
3. Enter the actual rent paid per month for your accommodation.
4. Select your city type — metro (Delhi, Mumbai, Chennai, Kolkata) or non-metro.
5. Click Calculate to instantly see your HRA exemption amount and the taxable portion of HRA.

The calculator applies all three conditions prescribed under Section 10(13A) and shows you the minimum value, which is your actual tax-exempt HRA amount.

HRA (House Rent Allowance) is a component of your salary provided by your employer to help cover accommodation expenses. It is one of the most significant tax-saving components in a salary structure, as a portion or the entire HRA can be claimed as exempt from income tax under Section 10(13A) of the Income Tax Act, provided you are living in a rented accommodation.

HRA exemption is only available under the old tax regime. If you have opted for the new tax regime, HRA exemption cannot be claimed, though you still receive HRA as part of your salary.

The HRA exemption is calculated as the minimum of the following three amounts:

• Condition 1 — Actual HRA received from employer
• Condition 2 — 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities)
• Condition 3 — Actual rent paid minus 10% of basic salary

HRA Exemption = Minimum of (Condition 1, Condition 2, Condition 3)

For example, if your monthly basic salary is ₹30,000, HRA received is ₹15,000, rent paid is ₹12,000, and you live in a non-metro city:

• Condition 1 = ₹15,000
• Condition 2 = 40% of ₹30,000 = ₹12,000
• Condition 3 = ₹12,000 − 10% of ₹30,000 = ₹12,000 − ₹3,000 = ₹9,000
• HRA Exemption = ₹9,000 per month (minimum of the three)

City classification significantly affects your HRA exemption calculation:

• Metro Cities — Delhi, Mumbai, Chennai, and Kolkata are classified as metro cities for HRA purposes. Employees in these cities can claim up to 50% of basic salary as HRA exemption under Condition 2.
• Non-Metro Cities — All other cities, including Bangalore, Hyderabad, Pune, and Ahmedabad, are classified as non-metro for HRA purposes. The limit under Condition 2 is 40% of basic salary.

Note: The classification is based on the city where you actually reside and pay rent, not where your employer's office is located.

To be eligible to claim HRA exemption, you must meet the following conditions:

1. You must be a salaried employee receiving HRA as part of your salary structure — self-employed individuals cannot claim HRA exemption under Section 10(13A).
2. You must be living in rented accommodation — HRA exemption cannot be claimed if you are living in your own house.
3. You must actually pay rent — The rent must be genuinely paid, not just claimed on paper.
4. Rent receipts required above ₹1 lakh per year — If your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer for HRA exemption.
5. Old tax regime only — HRA exemption is not available if you have opted for the new tax regime.

Our calculator helps you maximize your HRA tax savings by allowing you to:

• Get instant, accurate HRA exemption calculations applying all three conditions
• Understand exactly how much of your HRA is tax-exempt vs taxable
• Compare HRA exemption for different rent amounts to optimize your tax saving
• Plan your salary structure and rental arrangements more effectively