HRA Exemption Calculator
Calculate your tax-free House Rent Allowance
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HRA Exemption (Tax-free)
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Minimum of the three conditions below applies
Actual HRA Received
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50%/40% of Basic
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Rent - 10% of Basic
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Taxable HRA
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What is HRA (House Rent Allowance) exemption?
HRA exemption under Section 10(13A) reduces your taxable income by the amount of rent paid (up to a limit). For a metro employee paying ₹15,000/month rent, this can save ₹54,000–₹1,08,000 in tax annually depending on the tax bracket.
Formula used
HRA Exemption = Minimum of:
A) Actual HRA received from employer
B) 50% of (Basic+DA) for metros / 40% for non-metros
C) Actual rent paid − 10% of (Basic+DA)
Metro cities: Mumbai, Delhi, Chennai, Kolkata
Taxable HRA = HRA received − Exempt amount
How to use this calculator
- Enter annual basic salary + DA
- Enter annual HRA received from employer
- Enter annual rent paid (monthly rent × 12)
- Select metro or non-metro city
- Click Calculate — see exemption amount and taxable HRA
Example
Example — Mumbai employee, Basic ₹6L, HRA ₹2.4L, Rent ₹1.8L:
A) HRA received = ₹2,40,000
B) 50% of ₹6L = ₹3,00,000
C) ₹1,80,000 − 10% of ₹6L = ₹1,80,000 − ₹60,000 = ₹1,20,000
Minimum = ₹1,20,000 exempt | Taxable HRA = ₹1,20,000
To maximise exemption — pay rent ≥ HRA + 10% of basic:
In above example: pay rent of ₹2,40,000 + ₹60,000 = ₹3,00,000
Then C = ₹3,00,000 − ₹60,000 = ₹2,40,000 = full HRA exempt ✓
Tax saved at different brackets (₹1.2L HRA exempt):
20% bracket: ₹24,000 saved | 30% bracket: ₹37,440 saved
Frequently asked questions
Yes — if your rented home and owned property are in different cities. For example, working in Mumbai (renting) while repaying a home loan for a property in your hometown.
Yes. Pay rent to your parents with a proper rent agreement and monthly receipts. They declare it as rental income (taxed at their slab). If their income is low, family overall saves tax.
Rent receipts for amounts above ₹3,000/month. Rent agreement for amounts above ₹1L/year. Landlord's PAN for rent above ₹1L/year.