HRA Exemption Calculator

Calculate how much of your HRA is tax-exempt. Compare all 3 HRA rules to find your maximum exemption.

HRA Exemption

₹1.80 L

Taxable HRA

₹1.20 L

Rule Applied

Rent paid minus 10% of Basic

Three-Rule Comparison

1. Actual HRA: ₹3.00 L

2. 50% of Basic: ₹3.00 L

3. Rent − 10% Basic: ₹1.80 L ← Lowest

💡 How HRA Exemption Works

HRA (House Rent Allowance) exemption is available under Section 10(13A) for salaried employees who pay rent. The exempt amount is the LOWEST of three values: actual HRA received, 50% of basic (metro) / 40% (non-metro), or rent paid minus 10% of basic salary.

Metro cities for HRA purposes include Delhi, Mumbai, Kolkata, and Chennai. If you live in any other city, you get 40% of basic instead of 50%. The HRA exemption is only available under the Old Tax Regime.

Basic: ₹50K/month, HRA: ₹25K/month, Rent: ₹20K/month (Mumbai) → Exemption = ₹15K/month (Rent − 10% Basic = lowest). Annual savings: ₹1,80,000 exempt from tax.

HRA Exemption Calculator FAQ