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HRA Calculator
Calculate your House Rent Allowance exemption and tax savings
HRA Exemption: Minimum of Actual HRA, Excess Rent over 10% salary, or 50% of salary (Metro city)
HRA Calculation Results
HRA Breakdown
HRA Calculation Methods Comparison
The green bar shows the minimum amount, which determines your HRA exemption
💡 HRA Optimization Tips
- •Ensure rent paid exceeds 10% of your salary
- •Keep proper rent receipts and rental agreement
- •Consider metro vs non-metro city classification
- •HRA is tax-free only if you're living in a rented house
📋 Required Documents
- •Rent receipts for amounts >₹1 lakh annually
- •Rental agreement copy
- •Landlord's address and PAN (if rent > ₹1 lakh)
- •Declaration that you don't own a house in the same city
📌 Important Notes:
- •HRA exemption is available only if you live in a rented accommodation
- •You cannot claim HRA if you own a house in the same city
- •Metro cities include Mumbai, Delhi, Kolkata, and Chennai
- •Salary includes Basic + DA for HRA calculation
- •TDS is deducted on taxable HRA amount
- •Both parents can claim HRA if paying rent separately
How HRA Exemption Is Calculated
House Rent Allowance (HRA) is a salary component paid to employees who live in rented accommodation. Under the old tax regime and Section 10(13A), part of the HRA you receive can be exempt from tax — this calculator works out exactly how much, using your basic salary, DA, actual HRA, rent paid, and whether you live in a metro city.
HRA Exemption Formula
HRA Exemption = the minimum of these three amounts:
2. Rent paid minus 10% of salary (Basic + DA).
3. 50% of salary (Basic + DA) for metro cities, or 40% for non-metro cities.
Whatever HRA is left after subtracting the exemption is added to your taxable salary income.
HRA exemption is only available under the old tax regime and applies solely to actual rent paid for accommodation you live in. Salary components, metro city classification and exemption rules can be revised by the government, so verify current rules on the official Income Tax Department website or with a tax professional before filing.
HRA Calculator FAQs
How is HRA exemption calculated?
HRA exemption is the minimum of three amounts: the actual HRA received, rent paid minus 10% of salary (Basic + DA), and 50% of salary for metro cities or 40% for non-metro cities. Whichever of these three is lowest is the exempt amount.
Which cities count as metro cities for the 50% HRA rate?
For HRA purposes, Mumbai, Delhi, Kolkata and Chennai are treated as metro cities and get the higher 50% of salary exemption limit. All other cities, including Bangalore, Hyderabad and Pune, use the 40% limit.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption under Section 10(13A) is available only if you opt for the old tax regime. The new tax regime does not allow this or most other exemptions and deductions, though it offers lower slab rates in exchange.
What documents do I need to claim HRA exemption?
You typically need rent receipts, a rental agreement, and your landlord's PAN if the annual rent exceeds ₹1 lakh. You should also declare that you do not own residential property in the same city where you are claiming HRA.
Can I claim HRA if I live with my parents and pay them rent?
Yes, you can claim HRA exemption on rent paid to your parents if it is a genuine rental arrangement backed by receipts and, ideally, a rental agreement, and your parents declare that rental income in their own tax returns.
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