HRA Exemption Calculator

🏠 HRA Exemption Calculator (India)

Auto-calculates as you type • Metro/Non-metro rules

Tip: Enter annual figures (not monthly). We can add a monthly toggle later if you want.

HRA Exemption Calculator – FAQs

Who is eligible to claim HRA exemption?

Salaried employees who receive HRA and pay rent for accommodation. If you don’t get HRA, check Section 80GG instead.

How is HRA exemption calculated?

Exemption is the least of these three: (1) Actual HRA received; (2) Rent paid minus 10% of salary; (3) 50% of salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros. Here, “salary” = basic + DA (to the extent it forms part of retirement benefits).

What counts as “rent” and what documents are needed?

Rent paid for a residential property you live in (house/flat/portion). Keep rent receipts and a simple rent agreement. If annual rent exceeds ₹1,00,000, your employer will ask for the landlord’s PAN or a declaration if PAN isn’t available.

Metro vs non-metro—how does it change the calculation?

For metro cities, cap (3) above is 50% of salary; for non-metros, it’s 40%. The calculator applies the right cap based on your selection.

Can I pay rent to parents and claim HRA?

Yes, provided there’s a genuine rental arrangement—rent agreement, periodic transfers, and receipts. Your parents must show the rent as income.

Can I claim HRA and home-loan benefits together?

Possible if you work and live in a rented place while owning a house elsewhere (e.g., another city). Claim HRA for the rented home and home-loan interest/principal for the owned property as per rules.

Does the New Tax Regime allow HRA exemption?

No. HRA exemption is available under the Old Regime. In the New Regime, most exemptions/deductions (including HRA) are not available.


HRA Exemption Calculator

If you’re a salaried person living in a rented house, chances are you’ve heard of House Rent Allowance (HRA). But when it comes to filing taxes, most people get confused — How much of my HRA is actually exempt? What portion is taxable? Am I missing out on savings? That’s exactly why we built this simple HRA Exemption Calculator.

Instead of going through complicated formulas and tax rules, this tool does the math for you in seconds. Just enter your basic salary, HRA received, rent paid, and city of residence, and you’ll instantly see the exemption you are eligible for under the Income Tax Act. The calculator automatically compares the three standard conditions — actual HRA received, rent paid minus 10% of salary, and 50% (metro) or 40% (non-metro) of salary — and shows you the least of these, which is your tax-free HRA.

Why is this important? Because HRA can significantly reduce your taxable income if claimed properly. Many taxpayers either don’t claim it at all or claim it incorrectly, leading to extra tax outgo. With this calculator, you can plan better, avoid errors, and maximize your tax savings legally.

Whether you’re filing returns on your own or cross-checking what your employer has calculated, this tool gives you clarity and confidence. Use it before submitting investment proofs or filing your ITR — it might just save you more than you think.

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