HRA (House Rent Allowance) Calculator
Estimate HRA tax exemption under Section 10(13A) for India.
Use this free HRA calculator to compare salary, rent, and metro/non-metro city category. See exempt HRA, taxable HRA, and the rule that limits your exemption under the old regime.
Configure your HRA
Enter salary and rent details.
Salary & rent parameters
Mode
Advanced mode adds DA input, tax slab rate, city comparison, and rent increase settings.
Salary & Rent
Location & Period
City type
Metro (50%): Delhi, Mumbai, Chennai, Kolkata. Non-metro (40%): all other cities.
Results summary
HRA exemption
₹1,20,000
≈ 1.20 L
With a basic salary of ₹50,000, receiving ₹20,000/month HRA and paying ₹15,000/month rent in a metro city for 12 months, your annual HRA exemption is ₹1,20,000. This saves you ₹36,000 in taxes at the 30.0% slab.
Monthly exemption
₹10,000
Taxable HRA
₹1,20,000
≈ 1.20 L
Tax saving
₹36,000
Limiting condition
Rent paid − 10% of Basic + DA
Total HRA received
₹2,40,000
≈ 2.40 L
Total rent paid
₹1,80,000
≈ 1.80 L
Exemption Breakdown
Condition 1
Actual HRA received
₹2,40,000
Condition 2
50% of Basic + DA
₹3,00,000
Condition 3
Rent − 10% of Basic + DA
₹1,20,000
Limiting factor
HRA exemption is available only under the old tax regime. Under the new tax regime (Section 115BAC), HRA exemption cannot be claimed. If your HRA exemption is significant, compare both regimes before choosing.
Monthly breakdown
Month-wise HRA exemption schedule
See how the three conditions are calculated each month and which one limits your exemption.
| Month | Basic + DA | HRA received | Rent paid | Cond. 1 | Cond. 2 | Cond. 3 | Exempt | Taxable |
|---|---|---|---|---|---|---|---|---|
| 1 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 2 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 3 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 4 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 5 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 6 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 7 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 8 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 9 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 10 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 11 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
| 12 | ₹50,000 | ₹20,000 | ₹15,000 | ₹20,000 | ₹25,000 | ₹10,000 | ₹10,000 | ₹10,000 |
Overview
What is an HRA Calculator? How It Works in India
An HRA calculator estimates how much of your House Rent Allowance can qualify for tax exemption under Section 10(13A) based on salary, actual rent paid, and metro or non-metro city status. It is useful for salaried taxpayers in India who live in rented accommodation under the old tax regime.
Key Features of This Calculator
Calculates HRA exemption using the standard rule comparison.
Shows exempt HRA and taxable HRA separately.
Supports metro and non-metro city logic.
Useful for salary planning and old-regime tax estimation.
How it works
HRA Exemption Formula Explained for India
The HRA exemption is determined by comparing three values. The lowest eligible value becomes exempt, while any remaining HRA is taxable under the old regime.
HRA Exemption Formula
Exempt HRA = Lowest of: Actual HRA received, Rent paid - 10% of salary, or 50% / 40% of salary
Actual HRA
H1
Received from employer
Salary limit
H2
40% or 50% rule
Rent excess
H3
Rent minus 10% salary
Exempt HRA
H
Lowest of the three
Formula context
Review the formula flow to see how the core inputs combine into the final output.
1. Enter salary and rent inputs
Provide basic salary, HRA received, rent paid, and whether you live in a metro or non-metro city.
2. Apply the three-rule comparison
The calculator compares actual HRA received, rent minus 10% of salary, and 40% or 50% of salary depending on city category.
3. Identify exempt and taxable HRA
The lowest of the eligible values is treated as exempt and the balance, if any, remains taxable.
Quick guide
HRA Example: ₹50,000 Basic Salary in a Metro City
If your basic salary is ₹50,000 per month, HRA received is ₹20,000, and rent paid is ₹18,000 in a metro city (Mumbai, Delhi, Kolkata, Chennai), the calculator compares all three rule-based values to determine the exemption.
Worked example
Actual HRA
Rs. 20,000 per month
Basic + DA
Rs. 40,000 per month
Rent paid
Rs. 22,000 per month
Exempt HRA
Rs. 2.16 lakh per year
Condition check
Condition 1 = Actual HRA = Rs. 20,000 x 12 = Rs. 2,40,000
Condition 2 = 50% of salary = Rs. 20,000 x 12 = Rs. 2,40,000
Condition 3 = (22,000 - 4,000) x 12 = Rs. 2,16,000
Exempt HRA = lowest of the three = Rs. 2,16,000
Keep rent receipts and landlord details aligned with the return you file, especially if the exemption claim is substantial.
Tax information
Tax information
HRA exemption is typically relevant under the old tax regime and depends on salary structure, actual rent paid, and whether the location is classified as metro or non-metro.
Rent paid relative to salary, HRA received, and city classification drive the result. A change in any one of these can materially alter the exemption amount.
Calculator education
How HRA exemption is estimated
This calculator compares your salary details, rent paid, and city type against the HRA exemption formula used under the old tax regime.
1. Enter salary and rent inputs
Provide basic salary, HRA received, rent paid, and whether you live in a metro or non-metro city.
2. Apply the three-rule comparison
The calculator compares actual HRA received, rent minus 10% of salary, and 40% or 50% of salary depending on city category.
3. Identify exempt and taxable HRA
The lowest of the eligible values is treated as exempt and the balance, if any, remains taxable.
Tax Information
Tax information
HRA exemption is typically relevant under the old tax regime and depends on salary structure, actual rent paid, and whether the location is classified as metro or non-metro.
Key Drivers
What affects the estimate
Rent paid relative to salary, HRA received, and city classification drive the result. A change in any one of these can materially alter the exemption amount.
Planning Note
Good to know
Keep rent receipts and landlord details aligned with the return you file, especially if the exemption claim is substantial.
Use cases
HRA Scenarios: Metro Rent, Salary Structure & Tax Planning
HRA calculations are especially relevant for Indian salaried employees during salary structuring and annual tax declaration planning.
Metro City: ₹25,000 Rent in Mumbai or Delhi
With ₹60,000 basic salary and ₹25,000 rent in a metro city, the 50% of basic rule gives ₹30,000. The rent minus 10% rule gives ₹19,000. Your exemption is limited to the lowest of the three values — so structuring salary correctly matters.
Optimizing Salary Structure for HRA
If your employer lets you restructure, increasing HRA in the CTC while keeping basic lower can sometimes increase take-home. But a lower basic also reduces EPF and gratuity — test the trade-off carefully.
Old vs New Regime: Is HRA Still Relevant?
HRA exemption only applies under the old tax regime. If your total Section 80C, 80D, HRA, and home loan deductions exceed the new regime's lower slab benefit, the old regime with HRA may save more tax.
FAQ
Frequently Asked What is an HRA Calculator How It Works in India Questions
These FAQs cover HRA exemption rules, metro versus non-metro treatment, and how HRA fits into wider income-tax planning.
House Rent Allowance (HRA) is a component of salary provided by employers to help cover rental expenses. Under Section 10(13A) of the Income Tax Act, salaried individuals can claim an exemption on HRA to reduce taxable income. The exemption is calculated as the least of three conditions: actual HRA received, 50% (metro) or 40% (non-metro) of basic salary plus DA, and rent paid minus 10% of basic salary plus DA.
Related tools
Related Calculators
Use these calculators to connect HRA exemption with broader tax and salary planning decisions.
Income Tax Calculator
See how HRA exemption affects total tax under the old regime.
Gratuity Calculator
Estimate another salary-linked benefit for long-term planning.
EPF Calculator
Compare tax planning with retirement deductions and savings.
NPS Calculator
Add NPS deductions into your salary and tax planning mix.