Calculate HRA exemption under Income Tax for salaried employees in India. Free HRA calculator for metro and non-metro cities.
House Rent Allowance (HRA) is a component of salary that salaried employees receive to cover their rent expenses. The good news: a portion of HRA is exempt from income tax, reducing your taxable income significantly if you live in a rented house.
HRA exemption is one of the most commonly miscalculated tax benefits in India. Many salaried people either claim too little (missing out on savings) or claim incorrectly (risking notices). Our calculator tells you the exact exempt amount based on three conditions under Section 10(13A).
HRA exemption is the minimum of these three amounts:
1. Actual HRA received from employer
2. 50% of basic salary (metro cities) or 40% (non-metro cities)
3. Rent paid minus 10% of basic salary
Metro cities: Delhi, Mumbai, Chennai, Kolkata
Non-metro: All other cities
Example: Basic = ₹40,000 | HRA received = ₹20,000 | Rent paid = ₹18,000 | City: Hyderabad
• Condition 1: ₹20,000
• Condition 2: 40% × ₹40,000 = ₹16,000
• Condition 3: ₹18,000 − 10% × ₹40,000 = ₹14,000
• Exemption = Minimum = ₹14,000
1. Enter your monthly basic salary (not CTC — only basic salary component)
2. Enter HRA received per month from your salary slip
3. Enter actual rent paid per month
4. Select city type — metro or non-metro
5. Calculate to see your exact monthly and annual HRA exemption
6. The remaining HRA (above exemption) is added to your taxable income
• Know your exact exemption: Stop guessing — get the precise amount
• Reduce taxable income: HRA exemption directly reduces your income tax liability
• Both regimes compared: Note that HRA exemption is only available under the old tax regime
• Rent receipts: For rent above ₹1 lakh/year, landlord's PAN must be provided to employer
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