HRA Exemption Calculator

How this calculator works

Enter your annual basic salary, the HRA you actually receive, the rent you pay, and whether you live in a metro city. The exemption is the lowest of three amounts: the actual HRA you receive, your rent paid minus 10% of basic salary, and 50% of basic salary (metro) or 40% (non-metro). Whatever's left after subtracting the exemption from actual HRA is added to your taxable income.

Why the exemption uses the lowest of three numbers

The rule is designed so the exemption never exceeds what you actually need for rent, and never exceeds what your employer actually paid you as HRA. If your rent is low relative to your salary, the "rent minus 10% of basic" limit usually caps the exemption; if your rent is high, the 50%/40%-of-basic limit usually caps it instead.

A note on accuracy

This calculator applies the standard Section 10(13A) formula correctly, but doesn't file your return or check other conditions (like whether you're paying rent to a relative, which has its own documentation requirements). Use the Income Tax Calculator afterward, entering your exempt HRA as part of total deductions, to see the full old-regime tax impact.