HRA Exemption Calculator
Calculate your HRA tax exemption based on salary, rent paid, and metro/non-metro city classification.
Metro cities: Delhi, Mumbai, Kolkata, Chennai
1. Actual HRA Received$240,000
2. 50% of Basic + DA$330,000
3. Rent - 10% of Basic + DA$150,000
Limiting factor: Rent - 10% of Basic + DA
HRA Exempt (Annual)
$150,000
$12,500/month
Taxable HRA (Annual)
$90,000
$7,500/month
Annual Basic + DA$660,000
Annual HRA Received$240,000
Annual Rent Paid$216,000
Exempt (63%)Taxable (38%)
HRA Rules Explained
HRA Exemption Conditions
Exemption is the minimum of: (1) Actual HRA received, (2) 50%/40% of Basic+DA for metro/non-metro, (3) Rent paid minus 10% of Basic+DA.
Metro vs Non-Metro
Metro cities (Delhi, Mumbai, Kolkata, Chennai) get 50% of Basic+DA as condition 2. All other cities get 40%.
No Rent, No Exemption
If you do not pay rent, HRA is fully taxable. Rent receipts are needed as proof for amounts above INR 1 lakh/year.
Optimize Your HRA
If rent is much lower than HRA, condition 3 limits your exemption. Consider increasing rent (legally) to maximize exemption.
New Tax Regime
Under the new tax regime (Section 115BAC), HRA exemption is not available. This calculator applies to the old regime.