HRA Calculator: Maximize Your House Rent Allowance Tax Benefits

Calculate your eligible HRA exemption under Section 10(13A) with our free tax-saving calculator designed for Indian salaried employees.

Your salary and rent

Basic salary
Dearness Allowance (DA)

Mainly paid to government and public sector employees. Leave blank if not applicable.

HRA received
Rent paid
Do you live in Delhi, Mumbai, Kolkata or Chennai?

HRA exemption result

Exempt HRA
₹20,000/mo
₹2,40,000/yr
Taxable HRA
₹0/mo
₹0/yr

With a basic salary of ₹50,000 a month, ₹20,000 HRA and ₹25,000 rent in a metro city, ₹20,000 a month (₹2,40,000 a year) of your HRA is tax-exempt and ₹0 a month is taxable.

Exempt HRA100%Taxable HRA0%

Calculation details

The exemption is the lowest of these three amounts.

ParticularsMonthlyYearly
Actual HRA received₹20,000₹2,40,000
50% of (Basic + DA)₹25,000₹3,00,000
Rent paid − 10% of (Basic + DA)₹20,000₹2,40,000
Exempt HRA₹20,000₹2,40,000
Taxable HRA₹0₹0

HRA exemption is the lowest of:

  1. Actual HRA received
  2. 50% of (Basic Salary + DA)
  3. Rent paid minus 10% of (Basic Salary + DA)
Exempt HRA₹2,40,000/yr

About the HRA Calculator

Your tax-free HRA is the lowest of three amounts: the HRA you receive, 50% of basic salary plus DA in a metro city (40% elsewhere), and rent paid minus 10% of basic plus DA. On a ₹60,000 basic, ₹24,000 HRA and ₹25,000 rent in a metro, ₹19,000 a month is exempt.

How it is calculated

Exempt HRA = least of (actual HRA, 50% or 40% of salary, rent − 10% of salary)

  • Salary here means basic salary plus dearness allowance (DA), where DA counts for retirement benefits.
  • Metro cities for the 50% limit are Mumbai, Delhi, Kolkata and Chennai. Every other city uses 40%.
  • The rest of your HRA is added to your taxable salary.

Worked example

Inputs: ₹60,000 basic, no DA, ₹24,000 HRA, ₹25,000 rent a month, metro city.

Result: The three limits are ₹24,000 (actual HRA), ₹30,000 (50% of salary) and ₹19,000 (rent − 10% of salary). ₹19,000 a month is exempt and ₹5,000 is taxable.

Open this example in the calculator

Rules and assumptions

  • HRA exemption is available only under the old tax regime. The new regime does not allow it.
  • If annual rent is above ₹1,00,000, your employer needs your landlord's PAN.
  • You cannot claim HRA for rent paid to your spouse. Rent paid to parents is allowed if they own the house and declare the rent as income.

Understanding House Rent Allowance (HRA)

House Rent Allowance (HRA) is a component of your salary provided by employers to help with rental expenses. Under Section 10(13A) of the Income Tax Act, you can claim tax exemption on HRA based on specific criteria.

How HRA Exemption is Calculated

The HRA exemption is the minimum of:

  • Actual HRA received from employer
  • Rent paid minus 10% of basic salary
  • 50% of basic salary for metro cities (40% for non-metros)

Our calculator helps you determine the exact exemption amount based on your specific situation.

Key Information

Who can claim HRA exemption?

  • Salaried employees receiving HRA from their employer
  • Individuals living in rented accommodation
  • People who submit proper rent receipts/documentation

Required documents

  • Rent receipts (monthly or consolidated)
  • Rent agreement (if available)
  • Landlord's PAN (for rent exceeding ₹8,333/month)
  • Form 12BB submitted to employer

Tax benefits

  • Reduction in taxable income
  • Lower tax liability
  • No upper limit on exemption amount (depends on calculation)
  • Available under both old and new tax regimes

Frequently Asked Questions

Do I need to submit rent receipts to claim HRA?

Yes, you generally need to submit rent receipts to your employer to claim HRA benefits. For monthly rent exceeding ₹8,333, you must also provide your landlord's PAN details.

Can I claim HRA if I live in my own house?

No, you cannot claim HRA exemption if you live in your own house as you're not actually paying rent. You would need to pay rent to someone else to be eligible for HRA benefits.

Which cities are considered metro cities for HRA calculation?

The cities classified as metros for HRA exemption purposes are Delhi (NCR), Mumbai, Kolkata, and Chennai. In these cities, you can claim up to 50% of your basic salary as HRA exemption, compared to 40% in non-metro cities.

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Last updated: April 2025

  • HRA Calculator
  • Tax Saving
  • Section 10(13A)

This calculator is provided for informational purposes only. For specific tax advice, please consult a tax professional.