How to Calculate HRA Exemption
Maximize your tax savings.
Input Salary
Enter your Basic Salary and DA.
Input HRA
Enter the HRA amount received from employer.
Input Rent
Enter the actual rent paid.
Select City
Choose Metro or Non-Metro for the correct limit.
What does this tool do?
Save tax on your rent. If you are a salaried employee receiving HRA, use this calculator to determine how much of it is tax-exempt based on your salary structure, rent paid, and city of residence.
Frequently Asked Questions
Can I claim HRA if I live in my own house?
No. You must be paying rent to claim HRA.
Is landlord's PAN mandatory?
Yes, if annual rent exceeds ₹1 Lakh.
Is this calculator free?
Yes. Completely free to use.
Does it cover New Tax Regime?
HRA exemption is only available in the Old Tax Regime.
HRA Calculator: Calculate Exemption & Save Tax
This HRA Calculator helps salaried employees calculate the taxable and tax-exempt portion of their House Rent Allowance (HRA). By understanding your HRA exemption, you can optimize your tax planning and reduce your liability.
HRA exemption is one of the most effective tax-saving tools for employees living in rented accommodation.
What is HRA?
House Rent Allowance (HRA) is a component of your salary paid by your employer to meet rental expenses. Section 10(13A) of the Income Tax Act allows a partial or full exemption on this allowance.
Important
HRA exemption is only available under the Old Tax Regime. If you opt for the New Tax Regime, you cannot claim HRA.
Who Should Use This?
- Salaried employees paying rent
- Residents of Metro/Non-Metro cities
- Employees planning tax savings
Exemption Rules
The exemption is the lowest of the following three:
- Actual HRA Received
- 50% of Salary (Metro) / 40% (Non-Metro)
- Rent Paid minus 10% of Salary
Metro vs. Non-Metro Cities
Your city of residence affects your HRA exemption limit. Basic salary percentage limits differ based on location.
City Classifications
Delhi, Mumbai, Kolkata, Chennai
All other cities and towns (e.g., Bangalore, Hyderabad, Pune)
Important Note
To claim HRA exemption:
- You must actually pay rent.
- The rented house must not be owned by you.
- You can pay rent to parents (but they must declare it as income).
- You generally cannot pay rent to your spouse.
- If rent > ₹1 Lakh/year, landlord's PAN is mandatory.
Frequently Asked Questions
Can I claim HRA and Home Loan Deduction together?
Yes. If you own a house in another city or live in a rented house.
What is 'Salary' for HRA?
Salary = Basic Pay + Dearness Allowance (DA).
Do I need rent receipts?
Yes. Employers require rent receipts as proof.
Can I pay rent to my parents?
Yes, and claim HRA. But parents must file taxes on that income.