HRA Calculator
Calculate your House Rent Allowance tax exemption under Section 10(13A) â instantly and accurately.
How Your Exemption Was Calculated
How to Use the HRA Calculator
Enter Basic Salary: Type your monthly basic salary amount in Indian Rupees. This is the fixed component on your salary slip, excluding HRA and other allowances.
Enter Dearness Allowance (DA): Enter your monthly DA if it forms part of your salary for retirement benefits. Most private sector employees can safely enter 0 here.
Enter Actual HRA Received: Type the monthly HRA amount your employer pays you, as shown on your salary slip or appointment letter.
Enter Rent Paid: Enter the actual monthly rent you pay for your rented accommodation. This must be for your primary residence.
Select City Type: Choose metro if you live in Delhi, Mumbai, Kolkata, or Chennai. Choose non-metro for all other cities â this affects the exemption percentage applied.
Click Calculate: Instantly view your monthly and annual HRA exemption, taxable HRA, and a complete breakdown of how the minimum was determined.
Key Features of This HRA Calculator
Accurate Three-Way Minimum
Applies the correct Income Tax Act formula â minimum of all three conditions â just as tax professionals do, with no shortcuts.
Metro vs Non-Metro Logic
Automatically applies 50% for metro cities and 40% for non-metro cities, matching Section 10(13A) requirements precisely.
Visual Exemption Bar
A live progress bar shows what percentage of your HRA is exempt versus taxable at a glance, making the result easier to interpret.
Monthly and Annual Figures
Displays both monthly and annualized exemption and taxable amounts so you can plan your taxes for the full financial year.
Step-by-Step Breakdown
Shows all three components of the formula and highlights which one became your final exemption â full transparency in every calculation.
Instant Client-Side Calculation
No server calls, no delays. Your salary data never leaves your device â fast, private, and available even offline.
HRA Exemption Formula Explained
Under Section 10(13A) of the Income Tax Act, the HRA exemption is the minimum of the following three amounts:
â Actual HRA received from employer
⥠50% of (Basic Salary + DA) â Metro | 40% of (Basic Salary + DA) â Non-Metro
âĸ Rent Paid â 10% of (Basic Salary + DA)
HRA Exemption = Minimum (â , âĄ, âĸ)
Taxable HRA = Actual HRA Received â HRA Exemption
- Basic Salary
- The fixed monthly component of your salary, excluding all allowances and bonuses.
- DA (Dearness Allowance)
- Included only when DA forms part of salary for retirement benefits â relevant mainly for government employees.
- Actual HRA Received
- The monthly HRA component your employer credits, as per your salary structure.
- Rent Paid
- The actual amount you pay monthly for rented accommodation. Must be real and verifiable.
- Metro / Non-Metro
- The Income Tax Act designates Delhi, Mumbai, Kolkata, and Chennai as metro cities attracting 50%. All other cities get 40%.
Practical HRA Calculation Examples
â Actual HRA = âš25,000
⥠50% of âš60,000 = âš30,000
âĸ âš20,000 â 10% of âš60,000 = âš20,000 â âš6,000 = âš14,000
â Actual HRA = âš22,000
⥠40% of âš75,000 = âš30,000
âĸ âš18,000 â 10% of âš75,000 = âš18,000 â âš7,500 = âš10,500
â Actual HRA = âš16,000
⥠50% of (âš40,000+âš8,000) = 50% of âš48,000 = âš24,000
âĸ âš10,000 â 10% of âš48,000 = âš10,000 â âš4,800 = âš5,200
â Actual HRA = âš40,000
⥠40% of âš1,00,000 = âš40,000
âĸ âš30,000 â 10% of âš1,00,000 = âš30,000 â âš10,000 = âš20,000
What Is House Rent Allowance (HRA)?
House Rent Allowance, commonly known as HRA, is a component of salary that employers provide to employees to help cover the cost of rented accommodation. Under the Indian Income Tax Act, salaried individuals who live in rented housing can claim an exemption on this allowance, reducing their total taxable income for the financial year.
The exemption is governed by Section 10(13A) read with Rule 2A of the Income Tax Rules. It is not a flat deduction â instead, it is the lowest of three calculated values, which means the actual benefit depends on your salary structure, the city you live in, and how much rent you actually pay. Many people either overclaim or underclaim because they skip one of the three comparisons.
It is important to note that HRA exemption applies only under the old tax regime. If you have opted for the new tax regime introduced under Section 115BAC, you cannot claim HRA exemption or most other allowances. Choosing between the two regimes requires comparing your total deductions and exemptions against the benefit of lower slab rates in the new regime.
HRA Concept in Multiple Languages
đ Want a deeper guide on HRA rules, mistakes to avoid, and tax-saving strategies?
Read the Full HRA Guide âFrequently Asked Questions â HRA Calculator
Is this tool free to use?
What is HRA exemption under Section 10(13A)?
What is the difference between metro and non-metro HRA calculation?
Can I claim HRA exemption if I pay rent to a family member?
Is Dearness Allowance (DA) mandatory to include?
What happens if my rent paid is less than 10% of Basic+DA?
Can I claim HRA exemption if I live in my own house?
What is taxable HRA?
Do I need to submit rent receipts to claim HRA?
Is HRA exemption available under the new tax regime?
How is annual HRA exemption calculated from monthly figures?
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