HRA Exemption Calculator
HRA exemption = minimum of (actual HRA received, rent paid − 10% of basic salary, 50% of basic for metros / 40% for non-metros).
6,00,000
3,00,000
3,60,000
1
Actual HRA received
₹3,00,000
Tax-exempt HRA
₹3,00,000
Taxable HRA
₹0
Metro cities for HRA = Delhi, Mumbai, Kolkata, Chennai. All others count as non-metro at 40%.
// about this calculator
House Rent Allowance is one of the most popular tax exemptions for salaried Indians. The exempt amount is whichever is lowest of: (a) actual HRA received, (b) rent paid minus 10% of basic, (c) 50% of basic if you live in a metro (40% otherwise). The remaining HRA becomes part of your taxable salary. The new tax regime does not allow this exemption.
// frequently asked questions
No — HRA exemption is allowed only if you actually pay rent. If you live in a self-owned house, the entire HRA is taxable.