🏢 HRA Calculator

Calculate your HRA exemption and taxable HRA amount.

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What is an HRA Calculator?

If you're a salaried employee living in rented accommodation, House Rent Allowance (HRA) is one of the easiest ways to reduce your taxable income — but the exemption isn't simply whatever HRA your employer pays you. The Income Tax Department caps the exemption using three separate limits, and only the smallest of the three counts. This calculator applies that rule directly to your basic salary, DA, HRA received, and rent paid, so you know exactly how much of your HRA is tax-free before you file your return.

HRA Exemption Formula (Section 10(13A))

The exempt amount is the lowest of the following three values:

1. Actual HRA received
2. Rent Paid − 10% of (Basic + DA)
3. 40% of (Basic + DA) for non-metro cities, or 50% for metro cities

Whatever HRA amount exceeds this exempt figure is added back to your taxable salary.

Worked Example

Consider a non-metro employee with Basic Salary ₹30,000/month (no DA), HRA received ₹15,000/month, and rent paid ₹18,000/month. The three limits work out to: (1) actual HRA received = ₹15,000; (2) rent paid minus 10% of basic = ₹18,000 − ₹3,000 = ₹15,000; (3) 40% of basic = ₹12,000. The smallest of these is ₹12,000, so that's the exempt portion — the remaining ₹3,000 of HRA received becomes taxable. Employees in metro cities like Mumbai, Delhi, Chennai, or Kolkata get a higher 50% limit instead of 40%, which can mean a larger tax-free portion for the same salary and rent figures.

How to Use This Calculator

  1. Enter your Basic Salary per month.
  2. Enter your Dearness Allowance (DA) per month, if applicable (enter 0 if none).
  3. Enter the HRA received from your employer per month.
  4. Enter the actual rent you pay per month.
  5. Click Calculate to see your exempt HRA and the taxable portion.

Things to Remember

  • You must actually be paying rent and not own the house you're claiming HRA for, in the city of your employment.
  • Rent receipts and a rent agreement are typically required by employers if annual rent exceeds ₹1 lakh, along with the landlord's PAN.
  • If you don't receive HRA but pay rent, you may still claim a deduction under Section 80GG, subject to its own separate limits.
💡 Tip: Once you know your taxable HRA, feed it into the Income Tax Calculator to see your overall tax liability for the year.

📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.