HRA Calculator
Calculate House Rent Allowance exemption in India.
Input & results
Input values
Results
Enter values to see instant results.
Calculation History
- Your calculations will appear here.
Recent calculations are saved automatically as you adjust inputs.
For informational purposes only. Consult a CA for official tax filing. Tax data version: FY 2025-26. See our full disclaimer.
What is HRA?
An HRA (House Rent Allowance) Calculator determines how much of your house rent allowance is exempt from income tax under Section 10(13A), based on your salary, rent paid, and city of residence.
HRA exemption is the least of three amounts: the actual HRA received, rent paid minus 10% of basic salary, and 50% of basic salary for metro cities (40% for non-metros). This calculator computes all three and returns the lowest, which is the exempt portion; the remainder is taxable. It helps salaried employees who live in rented homes reduce their tax legally.
Why is it used?
HRA is one of the most effective salary-based tax exemptions for renters. Calculating it accurately ensures you claim the maximum legal exemption and report the correct taxable amount, which matters when choosing the old tax regime.
Who should use it?
Salaried employees in India who receive HRA and live in rented accommodation, especially those evaluating the old tax regime.
How it works
- Enter Basic Salary (annual), HRA Received (annual), Rent Paid (annual), Metro City in the input fields.
- The calculator validates your entries and applies the correct hra formula.
- Results update in real time as you change any value — no submit button needed.
- Review the formula, variable definitions, and worked example below to see how the answer is derived.
Formula
Variable definitions
| Variable | Meaning |
|---|---|
| HRA | Actual house rent allowance received |
| Rent | Annual rent paid |
| Basic | Basic salary (plus DA if applicable) |
| k | 0.5 for metro cities, 0.4 for non-metro cities |
How the formula works
- Compute the actual HRA received from your salary.
- Compute rent paid minus 10% of basic salary.
- Compute 50% of basic (metro) or 40% (non-metro).
- The exemption is the lowest of the three; the rest of the HRA is taxable.
Example calculation
Basic ₹5,00,000, HRA ₹2,00,000, rent ₹2,40,000, metro city.
| Input | Value |
|---|---|
| Basic salary | ₹5,00,000 |
| HRA received | ₹2,00,000 |
| Rent paid | ₹2,40,000 |
| City | Metro |
- Actual HRA = ₹2,00,000
- Rent − 10% basic = 2,40,000 − 50,000 = ₹1,90,000
- 50% of basic = ₹2,50,000
- Exemption = min(2,00,000, 1,90,000, 2,50,000) = ₹1,90,000
Result
More examples
Same figures in a non-metro city (40% of basic).
| Input | Value |
|---|---|
| Basic | ₹5,00,000 |
| HRA | ₹2,00,000 |
| Rent | ₹2,40,000 |
| City | Non-metro |
- 40% of basic = ₹2,00,000
- min(2,00,000, 1,90,000, 2,00,000)
Result
Methodology
- Gather Basic Salary (annual), HRA Received (annual), Rent Paid (annual), Metro City from your documents or estimates.
- Enter each value in the matching field; units must match the labels.
- The calculator applies the HRA formula and updates results in real time.
- Compare scenarios by changing one input at a time.
Benefits
- Claim the maximum legal HRA exemption.
- Know your taxable HRA precisely.
- Compare metro vs non-metro treatment.
- Plan rent and salary structure for tax efficiency.
Use cases
- Salaried renters filing under the old regime.
- Negotiating salary structure with an employer.
- Deciding whether the old regime is worthwhile.
- Verifying employer HRA exemption computations.
Tips & important notes
- Keep rent receipts and your rental agreement as proof.
- If annual rent exceeds ₹1,00,000, your landlord's PAN is usually required.
- HRA exemption applies under the old regime, not the new regime.
- Only basic salary (and DA, if part of retirement benefits) counts as 'basic'.
Common mistakes
- Using gross salary instead of basic salary in the formula.
- Applying the 50% metro rate to a non-metro city.
- Claiming HRA exemption under the new regime, where it is not allowed.
Related concepts
- Section 10(13A) and rent-receipt requirements
- Old vs new tax regime deductions
- Basic salary and dearness allowance
Good to know