HRA Calculator — Calculate Your HRA Tax Exemption (India)
Calculate your HRA exemption under Section 10(13A). Enter basic salary, HRA received, and rent paid to find the exact tax-exempt amount.
House Rent Allowance is often the largest single tax exemption available to salaried employees in India — sometimes saving ₹50,000–₹2,00,000+ in tax annually. But calculating the exact exemption is confusing because it's the minimum of three different values, and most people just accept whatever their employer calculates without verifying.
The CalcHub HRA Calculator computes your exact exemption in seconds.
HRA Exemption Formula
The exempt amount is the minimum of:
- Actual HRA received from employer
- 50% of basic salary (metro cities) or 40% of basic salary (non-metro)
- Rent paid minus 10% of basic salary
How to Calculate — Step by Step
Example: Ravi works in Bangalore (non-metro for HRA purposes)| Component | Monthly | Annual |
|---|---|---|
| Basic salary | ₹50,000 | ₹6,00,000 |
| HRA received | ₹25,000 | ₹3,00,000 |
| Rent paid | ₹22,000 | ₹2,64,000 |
- Actual HRA = ₹3,00,000
- 40% of basic (non-metro) = ₹2,40,000
- Rent − 10% of basic = ₹2,64,000 − ₹60,000 = ₹2,04,000
Taxable HRA = ₹3,00,000 − ₹2,04,000 = ₹96,000
If Ravi is in the 30% bracket, this exemption saves him ₹2,04,000 × 30% = ₹61,200 in tax.
Quick Reference Table
For metro cities (50% of basic):| Basic (Monthly) | HRA Received | Rent Paid | HRA Exempt (Annual) | Tax Saved (30%) |
|---|---|---|---|---|
| ₹30,000 | ₹15,000 | ₹15,000 | ₹1,44,000 | ₹43,200 |
| ₹50,000 | ₹25,000 | ₹25,000 | ₹2,40,000 | ₹72,000 |
| ₹70,000 | ₹35,000 | ₹35,000 | ₹3,36,000 | ₹1,00,800 |
| ₹1,00,000 | ₹50,000 | ₹50,000 | ₹4,80,000 | ₹1,44,000 |
| Basic (Monthly) | HRA Received | Rent Paid | HRA Exempt (Annual) | Tax Saved (30%) |
|---|---|---|---|---|
| ₹30,000 | ₹15,000 | ₹12,000 | ₹1,08,000 | ₹32,400 |
| ₹50,000 | ₹25,000 | ₹20,000 | ₹1,80,000 | ₹54,000 |
| ₹70,000 | ₹35,000 | ₹30,000 | ₹2,76,000 | ₹82,800 |
| ₹1,00,000 | ₹50,000 | ₹45,000 | ₹4,20,000 | ₹1,26,000 |
How to Maximize HRA Exemption
1. Ensure your basic salary is high enough. HRA exemption is capped at 50%/40% of basic. If your company offers a low basic and high special allowances, your HRA exemption ceiling drops. 2. Pay rent to parents (legally). If you live with your parents, you can pay them rent and claim HRA — provided they declare it as rental income. Keep rent receipts and ensure the arrangement is genuine. 3. Keep rent receipts. For rent exceeding ₹1,00,000/year, you must provide the landlord's PAN. For lower amounts, rent receipts are sufficient. 4. Don't forget the metro distinction. Bangalore, Hyderabad, Pune, and Gurgaon are NOT metro cities for HRA purposes — only Mumbai, Delhi, Kolkata, and Chennai qualify for the 50% rate.What If You Don't Receive HRA?
If your employer doesn't pay HRA but you pay rent, you can claim deduction under Section 80GG (old regime only):
- Minimum of: ₹5,000/month, 25% of adjusted total income, or rent paid minus 10% of income
- Maximum: ₹5,000/month (₹60,000/year)
- Not available if you, your spouse, or minor child own a house in the same city
HRA and New Tax Regime
HRA exemption is NOT available under the new regime. This is one of the biggest reasons high-rent employees in metros stick with the old regime. If your annual HRA exemption exceeds ₹2–3 lakh, switching to the new regime almost certainly increases your tax.Documents Needed for HRA Claim
| Rent Amount (Annual) | Required Documents |
|---|---|
| Below ₹1,00,000 | Rent receipts with landlord name and address |
| ₹1,00,000 and above | Rent receipts + landlord's PAN |
| Any amount | Rental agreement (recommended but not mandatory) |
Can I claim HRA if I have a home loan?
Yes — if you live in a rented house and own another property (or if you're paying EMI on a house in a different city). You can claim both HRA exemption and home loan interest deduction under Section 24(b). This is entirely legal.
What if my rent is paid in cash?
Cash rent payments are valid for HRA claims, but you need proper rent receipts. For payments above ₹1 lakh/year, the landlord's PAN is required regardless of payment mode.
Is HRA calculated monthly or annually?
HRA exemption is technically calculated month-by-month (relevant if your salary or rent changes mid-year). For simplicity, most employers calculate it annually or use the last month's figures. If your rent changed mid-year, calculate each period separately for accuracy.
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