HRA Exemption Calculator
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HRA Exemption Calculator summary
Calculation schedule
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HRA exemption calculator formula
HRA exemption is the lowest of three amounts. That is the main rule to remember.
HRA salary = basic salary + eligible DA + eligible commission Compare these 3 amounts: 1. HRA received 2. Rent paid − 10% of HRA salary 3. 50% of HRA salary for Delhi, Mumbai, Kolkata or Chennai; otherwise 40% HRA exemption = the lowest amount Taxable HRA = HRA received − exemption
If rent paid minus 10% of salary is below zero, that part is treated as zero.
HRA exemption normally belongs to the old tax regime and requires actual rent payment and supporting details.
Example with numbers
Basic salary is ₹6,00,000, HRA received is ₹2,40,000 and rent is ₹2,40,000 in a non-metro city. The three amounts are ₹2,40,000, ₹1,80,000 and ₹2,40,000. The lowest is ₹1,80,000, so estimated taxable HRA is ₹60,000.
What is an HRA exemption calculator?
HRA means House Rent Allowance. Some salaried employees receive it as part of salary. When the conditions are met, part of that HRA may be exempt from tax under the old regime.
This calculator compares the three HRA limits and shows the lowest one. It also shows the part of HRA that may remain taxable.
How to use the HRA calculator
- Enter annual basic salary and HRA received.
- Enter the rent actually paid during the same period.
- Choose metro only for Delhi, Mumbai, Kolkata or Chennai.
- Add eligible DA or turnover commission only when it forms part of HRA salary.
What the results mean
- HRA salary: the salary amount used in the three tests.
- Estimated exemption: the lowest eligible amount.
- Taxable HRA: HRA received minus the estimated exemption.
How this HRA calculation works
The calculator first works out salary for HRA. It then checks actual HRA, rent above 10% of salary and the 40% or 50% salary limit.
If salary, rent or city changed during the year, a period-by-period calculation may be needed. One yearly total can hide those changes.
Why an HRA calculator is useful
- It shows all three tests instead of only the final answer.
- It separates exempt HRA from taxable HRA.
- It helps you compare the estimate with payroll or Form 16.
- Your salary and rent figures stay in your browser while you calculate.
Why your HRA exemption may be different
Payroll may calculate HRA month by month after a pay rise, rent change, job change or move. This can produce another result.
The final claim depends on the tax regime, real rent payment and documents such as rent receipts or landlord details. This calculator cannot check those facts.
Sources
- Income Tax Department: allowances allowable to a taxpayer
- Income Tax Department: Schedule 10(13A)
- Income Tax Department: treatment of income from different sources
Rule and source review: Reviewed 31 August 2026 for the HRA rules applied during Tax Year 2026–27.
Disclaimer
This HRA calculator gives a general estimate for normal salary income. It does not confirm eligibility or replace payroll records, Form 16 or tax advice. Check the rules and your documents for the relevant tax year before claiming an exemption.
Frequently asked questions
How is HRA exemption calculated?
It is normally the lowest of actual HRA, rent minus 10% of HRA salary, and 50% or 40% of that salary.
Which cities count as metro for HRA?
For this rule, metro means Delhi, Mumbai, Kolkata or Chennai.
Can I claim HRA without paying rent?
The normal HRA exemption needs actual rent payment. Without rent, the rent-based test becomes zero.
Is HRA exemption available in the new tax regime?
Normal HRA exemption is generally not available under the default new regime.
Why does Form 16 show another HRA figure?
Your employer may use monthly salary and rent periods, while one annual calculation may not capture every change.