HRA Calculator

Calculate your House Rent Allowance (HRA) tax exemption. Find out exactly how much HRA is exempt from income tax — for both metro and non-metro cities.

Basic Salary per Month (₹)

HRA Received per Month (₹)

Actual Rent Paid per Month (₹)

City Type

Calculation Period

How HRA Exemption is Calculated

The HRA exemption is the MINIMUM of these three amounts:

1. Actual HRA received
The HRA component in your salary slip

▼ MINIMUM OF ▼

2. 50% of Basic (Metro) / 40% (Non-Metro)
50% × Basic Salary for metro cities
40% × Basic Salary for other cities

▼ MINIMUM OF ▼

3. Actual Rent − 10% of Basic
Rent paid minus 10% of annual basic salary

Important: HRA exemption is only available in the Old Tax Regime. Not available under New Tax Regime.

Metro Cities: Delhi, Mumbai, Kolkata, Chennai — 50% of Basic

Non-Metro: Bangalore, Hyderabad, Pune, all other cities — 40% of Basic

What is HRA?

House Rent Allowance (HRA) is a salary component provided by employers to help employees cover their rental expenses. The amount of HRA that is exempt from income tax is determined by a specific formula under Section 10(13A) of the Income Tax Act.

Tips to Maximize HRA Benefit

1. Pay rent to a family member (except spouse) — keep proper rental receipts and agreement.
2. If rent exceeds ₹1 lakh/year, provide landlord's PAN to your employer.
3. Even if paying rent to parents, you can claim HRA — and parents can show it as rental income.