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HRA Exemption Calculator

Calculate your tax-exempt House Rent Allowance based on Income Tax rules

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Metro: Mumbai, Delhi, Kolkata, Chennai

Exempt HRA Amount

₹1,50,000

Taxable HRA

₹1,00,000

Total Received

₹2,50,000

Least of these is exempt:

1. Actual HRA Received₹2,50,000
2. Rent Paid - 10% of Basic₹1,50,000
3. 50% of Basic Salary₹2,50,000

DISCLAIMER: This tool provides estimates based on current laws and regulations. Tax, GST, and labor laws are subject to periodic changes. Consult a qualified professional for precise compliance.

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Using the HRA Exemption Calculator

Our online HRA calculator help you find exactly how much tax you can save on your house rent. House Rent Allowance (HRA) is a significant component of the Indian salary structure that offers substantial tax breaks under the Old Tax Regime.

Latest RBI Rates
Updated Dec 2025 | FY 2025-26 Compliant
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Key Features

  • •Calculates exemption for both Metro (50%) and Non-Metro (40%) cities
  • •Precisely finds the minimum of the three legal HRA criteria
  • •Supports monthly and annual calculation modes
  • •Updated for the current Indian financial year (FY 2024-25)
  • •Helps decide if the Old Tax Regime is more beneficial for you
  • •Instant breakdown of taxable vs exempt HRA amounts

How to calculate HRA Exemption Calculator

Step-by-step Guide & Informational Intent

  1. 1.Enter your 'Basic Salary' and Dearness Allowance (DA) for the year.
  2. 2.Input the 'Actual HRA' you receive from your employer.
  3. 3.Enter the 'Total Rent Paid' by you in the financial year.
  4. 4.Select whether you live in a Metro (Delhi, Mumbai, Kolkata, Chennai) or Non-Metro city.
  5. 5.The calculator will instantly show the amount exempted from tax.

How the Calculation Works

HRA exemption is the minimum of: 1) Actual HRA received, 2) 50% of (Basic+DA) for Metros or 40% for Non-Metros, or 3) Actual Rent Paid minus 10% of (Basic+DA).

Important Assumptions

  • • You must be living in a rented accommodation
  • • The rent paid must exceeds 10% of your salary
  • • Valid rent receipts must be available as proof
  • • Exemption is only available under the Old Tax Regime
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HRA Saving Scenarios

Metro Living: If you pay ₹30,000 rent in Bangalore with a ₹1 Lakh basic, your exemption could be over ₹2 Lakhs annually.
Rent to Parents: You can pay rent to your parents (if they own the house) and claim this exemption legitimately.
Landlord PAN: If your annual rent exceeds ₹1 Lakh, ensure you have your landlord's PAN to claim the full benefit.
HRA vs Section 80GG: If you don't receive HRA but pay rent, explore Section 80GG instead for tax relief.
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HRA Exemption Calculator

Our online HRA calculator help you find exactly how much tax you can save on your house rent. House Rent Allowance (HRA) is a significant component of the Indian salary structure that offers substantial tax breaks under the Old Tax Regime.

Exemption is the minimum of: 1) Actual HRA received, 2) 50% of (Basic salary + DA) for Metro cities or 40% for Non-Metros, 3) Rent paid minus 10% of (Basic salary + DA).
No. The New Tax Regime does not allow any HRA tax exemptions. To claim HRA benefits, you must stick with the Old Tax Regime.
Yes, you can pay rent to your parents and claim exemption, provided the property is in their name, they include the rent in their taxable income, and you have valid rent receipts and bank transfer records.
If your total rent payment exceeds ₹1 Lakh per financial year, it is mandatory to provide your landlord's PAN to your employer to claim HRA tax exemption.
If you pay rent but do not receive HRA from your employer, you can still claim a deduction under Section 80GG, subject to certain limits and conditions (like not owning a house in the same city).
Yes, you can claim both if you live in a rented house in one city (HRA) while owning a house in another city (Home Loan benefits). This is also possible in the same city if you can justify why you aren't living in your own home.