HRA Tax Benefit Calculator
Calculate your annual House Rent Allowance tax exemption and taxable salary under Indian income tax rules.
How the HRA Tax Benefit Calculator works
To calculate your tax exemption, enter your yearly earnings and rent details into the calculator.
First, enter your Basic salary (yearly) as shown on your pay slip. Next, enter the total HRA received (yearly) from your employer. In the Rent paid (yearly) field, type the total amount of rent you pay to your landlord over the year.
Finally, select your City type. Choose metro if your rented home is in Delhi, Mumbai, Kolkata, or Chennai. Choose nonmetro for any other city in India. The tool compares your actual HRA, the excess rent paid over ten percent of your basic salary, and the fifty or forty percent salary rule. It instantly displays your total exempt HRA and the remaining taxable HRA amount.
Formula used
Exemption = least of (HRA received, 50%/40% of basic, rent − 10% of basic)
| Symbol | Meaning |
|---|---|
| HRA received | the HRA part of your salary |
| basic | annual basic salary |
| rent paid | annual rent |
HRA exemption only applies under the old tax regime. Metros get 50% of basic, everywhere else gets 40%, and the exemption can never exceed the rent you actually pay minus 10% of basic.
Inputs used: Basic salary (yearly), HRA received (yearly), Rent paid (yearly), City type.
Worked example
Here is how your HRA tax exemption is calculated using the default annual values.
- Identify the three statutory amounts: actual HRA received is 2,40,000; metro limit of 50% of basic salary (4,80,000) is 2,40,000; and rent paid minus 10% of basic (3,00,000 minus 48,000) is 2,52,000.
- Determine the lowest of the three amounts: the lowest value is 2,40,000.
- Compute the taxable portion by subtracting the exempt amount from total HRA received: 2,40,000 minus 2,40,000 leaves 0 as taxable HRA.
Result:
- HRA exempt: 240,000
- Taxable HRA: 0
Frequently asked questions
- Can I claim HRA exemption under the new tax regime?
- No, HRA exemption under Section 10(13A) is only available under the old tax regime. If you choose the new tax regime, your entire HRA is taxable.
- Which cities count as metro for HRA calculation?
- Only Delhi, Mumbai, Kolkata, and Chennai qualify as metro cities for the 50 percent rule. All other cities, including Bengaluru and Hyderabad, fall under the 40 percent non-metro limit.
- Is the landlord's PAN mandatory to claim HRA?
- Yes, you must report your landlord's PAN to your employer if your annual rent payment exceeds 1,00,000 rupees. If the landlord does not have a PAN, you must submit a signed declaration from them.
- What formula does the HRA Tax Benefit Calculator use?
- It uses Exemption = least of (HRA received, 50%/40% of basic, rent − 10% of basic), where HRA received is the the HRA part of your salary; basic is the annual basic salary; rent paid is the annual rent.
- How do I read the result?
- HRA exemption only applies under the old tax regime. Metros get 50% of basic, everywhere else gets 40%, and the exemption can never exceed the rent you actually pay minus 10% of basic.