Calculate your HRA exemption under Indian income tax rules. Enter your monthly salary and rent details.
Annual HRA Exemption
₹ 1,80,000
Based on minimum of three limits calculated monthly and annualized.
Monthly Exemption₹ 15,000
Monthly Taxable HRA₹ 0
Annual HRA Received₹ 1,80,000
Annual Taxable HRA₹ 0
Exemption Limit Breakdown (monthly)
1. HRA Received₹ 15,000
2. Rent − 10% of (Basic + DA)₹ 15,000
3. 50% of (Basic + DA)₹ 15,000
Exemption = minimum of the three limits above, per month, then multiplied by 12 for annual.
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What is the HRA Calculator?
House Rent Allowance (HRA) is a portion of your salary paid specifically to cover rent. Indian tax law allows you to claim up to 50% of your basic salary as HRA exemption in metro cities (Delhi, Mumbai, Kolkata, Chennai) and up to 40% in non-metro cities, provided you actually pay rent and don't own the property. The calculator determines the maximum exemption you can claim by comparing your actual HRA received, rent paid, and basic salary.
How it works
The HRA exemption is calculated as the lowest of three amounts: (1) the HRA you actually receive from your employer, (2) 50% of basic salary in metro cities or 40% in non-metro cities, or (3) actual rent paid minus 10% of basic salary. Your deductible HRA is whichever of these three figures is smallest. This ensures you claim only what the law allows and what you genuinely need for rent.
HRA Exemption = Minimum of: (1) HRA received, (2) 50% of basic (metro) or 40% (non-metro), (3) Actual rent − 10% of basic
Basic salary is your fixed monthly salary excluding allowances. Metro cities (Delhi, Mumbai, Kolkata, Chennai) allow up to 50%; all other cities allow 40%. The 10% basic salary deduction reflects an assumed provision by the employer toward housing.
Examples
Input
Result
Notes
Basic: ₹50,000, HRA: ₹25,000, Rent: ₹30,000, Metro city
HRA Exemption = ₹25,000
All three limits are ₹25,000 (50% of ₹50k basic), so exemption is ₹25,000
Rent (₹18k) minus 10% basic (₹6k) = ₹12k, but 40% basic is ₹24k; HRA received is ₹20k, so minimum is ₹12k
Basic: ₹80,000, HRA: ₹35,000, Rent: ₹50,000, Metro city
HRA Exemption = ₹35,000
50% of basic is ₹40k, but HRA received is only ₹35k, so exemption capped at ₹35,000
How to use the HRA Calculator
Enter your basic monthly salary (exclude all allowances)
Select your city type: metro or non-metro
Input the HRA allowance your employer gives you monthly
Enter your actual monthly rent payment
Click Calculate to see your maximum tax-free HRA exemption
Use this amount when filing your annual income tax return
Benefits
Instantly identify how much rent relief you can legally claim, reducing your taxable income
Avoid overstating HRA claims, which trigger tax notices and penalties
Plan your finances by knowing exactly how much HRA is tax-free versus taxable
Compare scenarios (metro vs. non-metro, different rents) to understand your tax position
Save time during tax filing season by pre-calculating your HRA exemption
Helpful for freelancers or salaried employees receiving HRA to ensure compliance
Tips & common mistakes
Common mistakes
Claiming the full HRA without checking if it exceeds the legal limit (50% or 40% of basic)
Forgetting to deduct 10% of basic salary from actual rent—the calculator does this for you
Not confirming your city is a metro before applying the 50% limit; miscategorization costs tax relief
Including dearness allowance or other allowances in basic salary instead of just fixed base
Tips
Keep rent receipts and landlord rent agreements; tax authorities may ask for proof of rent payment
If you own a property or pay no rent, HRA is fully taxable—this calculator assumes you pay rent
Update inputs if your basic salary, HRA, or rent changes mid-year to recalculate for tax planning
Use the lower exemption (not higher) when filing; claiming excess HRA invites audit risk
Frequently asked questions
What counts as 'basic salary' for HRA calculation?
Basic salary is your fixed monthly pay before any allowances. Exclude HRA, dearness allowance, special allowance, bonus, overtime, and benefits. Only the base fixed component counts.
Do I pay tax on HRA above the exemption limit?
Yes. If your HRA exceeds the calculated exemption, the excess is fully taxable as part of your income in that tax year.
Can I claim HRA if I own a home?
No. HRA exemption requires proof that you rent a property. If you own your residence, you cannot claim HRA relief, though you can claim home loan interest under Section 24.
What if I pay rent but my employer does not give HRA?
If no HRA is paid, you cannot claim HRA exemption under Section 10(13A). However, you may claim rent relief under other rules depending on your income and state laws.
How does the 10% basic salary factor work?
Tax law assumes the employer provides 10% of basic salary toward housing via other means (provident fund, etc.), so actual rent minus this 10% is the deductible amount.
Are metro cities always Delhi, Mumbai, Kolkata, Chennai?
Yes, for central income tax purposes. These four cities attract the 50% limit. All other Indian cities, including tier-2 metros, use the 40% rule.