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HRA Calculator

Calculate House Rent Allowance (HRA) tax exemption based on salary, rent paid, and city type. Save income tax on your rent!

HRA Details

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Basic salary per month
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DA per month (if applicable)
β‚Ή
HRA component in salary
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Actual rent you pay

50% exemption in metros, 40% in non-metros

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Enter HRA and rent details

Understanding HRA Exemption

HRA (House Rent Allowance) is a salary component that provides tax exemption for rent paid. The exemption is calculated using 3 formulas, and the lowest amount is exempt from tax.

HRA Exemption Formula

Tax-exempt HRA = Minimum of the following three:

  • Actual HRA received from employer
  • Rent paid minus 10% of (Basic + DA)
  • 50% of (Basic + DA) if metro city (Mumbai, Delhi, Kolkata, Chennai)
  • 40% of (Basic + DA) if non-metro city

Eligibility for HRA Exemption

  • βœ… You must be living in rented accommodation
  • βœ… You must be paying rent (proof required if >β‚Ή1L/year)
  • βœ… HRA component must be part of salary structure
  • βœ… Available only under Old Tax Regime
  • ❌ NOT available if you own the house you're living in
  • ❌ NOT available in New Tax Regime

Documents Required

  • Rent receipts: If annual rent >β‚Ή1,00,000
  • Landlord's PAN: If annual rent >β‚Ή1,00,000
  • Rental agreement: Recommended (not mandatory)
  • Bank statement: Showing rent payments (recommended)

Tips to Maximise HRA Benefit

  • βœ… Ensure HRA is 50% of Basic (standard practice)
  • βœ… Pay rent to parents (legal, but they must show it as rental income)
  • βœ… Keep rent receipts and payment proof
  • βœ… If rent >β‚Ή1L/year, collect landlord's PAN
  • βœ… Submit HRA proofs before Feb–Mar (for tax adjustment)
  • βœ… Living in metro? Mention it to employer for 50% exemption