HRA Calculator

What is HRA exemption?

House Rent Allowance (HRA) is partly tax-exempt if you pay rent and meet documentation rules under the Income Tax Act. Exemption is the least of three amounts: actual HRA, rent minus 10% of basic, and 50% (metro) or 40% (non-metro) of basic.

Formula

Rule 1 = HRA received
Rule 2 = Rent paid − (10% × Basic)
Rule 3 = Basic × (50% metro or 40% non-metro)
Exemption = min(Rule 1, Rule 2, Rule 3)
Taxable HRA = HRA received − Exemption

Example

Basic ₹50,000, HRA ₹25,000, rent ₹20,000, metro: Rule 2 = ₹15,000, Rule 3 = ₹25,000 → exemption ₹15,000, taxable HRA ₹10,000.

FAQ

Can I claim HRA if I live with parents?

You may need a valid rent arrangement and receipts; consult a tax professional for your situation.

Does this include new tax regime rules?

HRA exemption generally applies under the old regime. This tool does not model every regime choice or employer policy.