HRA Calculator
This HRA Calculator helps salaried employees in India calculate the tax-exempt and taxable portion of their House Rent Allowance (HRA) as per Income Tax rules.
By entering your salary details, rent paid, HRA received, and city type, you can instantly find out how much HRA is exempt from tax and how much is added back to your taxable income.
What Is House Rent Allowance (HRA)?
House Rent Allowance (HRA) is a salary component paid by employers to employees to cover rental housing expenses. A portion of HRA is exempt from income tax under Section 10(13A) of the Income Tax Act, 1961.
The amount of HRA exemption depends on salary, rent paid, HRA received, and whether the employee lives in a metro or non-metro city.
HRA Calculator
Calculate the tax-exempt and taxable portion of your HRA (House Rent Allowance) annually.
How HRA Exemption Is Calculated
As per Income Tax rules, the HRA exemption is calculated annually as the lowest of the following three amounts:
- Actual HRA received from the employer
- Rent paid minus 10% of basic salary
- 50% of basic salary for metro cities or 40% for non-metro cities
The least of these three values is considered the tax-exempt portion of HRA. Any remaining amount becomes taxable income.
Metro vs Non-Metro City Rules
The Income Tax Department classifies the following cities as metro cities for HRA calculation purposes:
- Mumbai
- Delhi
- Chennai
- Kolkata
Employees living in metro cities can claim up to 50% of basic salary as HRA exemption, while those living in non-metro cities can claim up to 40%.
Why Use This HRA Calculator?
This HRA Calculator is designed to make tax planning simple and accurate for salaried employees.
- Accurate HRA exemption calculation as per Indian tax laws
- Automatic annual conversion from monthly values
- Clear breakdown of all three exemption conditions
- Instant taxable and exempt HRA results
- Mobile-friendly and free to use
Documents Required to Claim HRA Exemption
To claim HRA exemption while filing income tax returns, employees may need to submit the following documents:
- Rent receipts from the landlord
- Rental agreement
- Landlord’s PAN (if annual rent exceeds ₹1,00,000)
Disclaimer
This HRA Calculator is provided for informational purposes only. The results are based on standard income tax rules and may vary based on individual circumstances, employer policies, and updates in tax laws. Please consult a qualified tax professional or refer to official Income Tax guidelines before making financial or tax-related decisions.