TaxUpdated 2026-06-12

HRA Calculator

Calculate your HRA exemption amount. Free House Rent Allowance calculator for Indian taxpayers under the Old Tax Regime.

Calculator widget coming soon. Use the information below to understand this tool.

Overview How It Works Formula Examples Benefits FAQ Related

What is HRA Calculator?

An HRA (House Rent Allowance) calculator helps you determine the amount of HRA exemption you can claim under Section 10(13A) of the Income Tax Act.

How It Works

The calculator computes the minimum of three values: actual HRA received, excess rent paid over 10% of salary, and 50%/40% of basic salary for metro/non-metro cities.

Formula & Calculation Method

HRA Exemption = min(Actual HRA, Rent paid - 10% of Basic, 50% of Basic for metro / 40% for non-metro)

Basic salary for HRA calculation includes Basic Pay, DA, and commission based on fixed percentage of turnover.

Examples

Metro City HRA

1Actual HRA: ₹25,000

2Rent - 10% Basic: ₹20,000 - ₹5,000 = ₹15,000

350% Basic: ₹25,000

4Exemption (minimum): ₹15,000

5Taxable HRA: ₹10,000

HRA Exemption: ₹15,000/month

Benefits

1
Tax savings on rent paid
2
Significant deduction for metro city renters
3
Legitimate way to reduce taxable income
4
No upper limit on rent amount

Common Use Cases

Salaried employees in rented accommodationMetro city workers with high rentTax optimization under Old RegimeYear-end tax planning

Expert Tips

1
Collect proper rent receipts with landlord PAN
2
Pay rent via bank transfer for documentation
3
Choose Old Regime if HRA benefit is significant
4
File rent declaration with employer at start of year
5
Keep leave and license agreement ready

Common Mistakes to Avoid

!
Not collecting rent receipts
!
Confusing HRA received with exemption
!
Not declaring rent to owner's PAN if rent exceeds ₹1 lakh/year
!
Claiming HRA under New Tax Regime
!
Not submitting rent receipts to employer

Frequently Asked Questions

Find answers to common questions about this calculator below.

HRA exemption is the minimum of: (a) Actual HRA received, (b) Rent paid minus 10% of basic salary, (c) 50% of basic salary for metro cities (40% for non-metros). HRA is available only under the Old Tax Regime.

You cannot claim HRA if you live in your own house. If you live with parents, you can pay rent to them and claim HRA, provided your parents declare this rental income in their tax return.