HRA Exemption Calculator

HRA exemption (House Rent Allowance exemption) is a tax benefit available to salaried employees under Section 10(13A) of the Income Tax Act, 1961. If you receive HRA as part of your salary and pay rent for your accommodation, a portion of the HRA is exempt from income tax. The exempt amount is the minimum of three conditions defined by the Income Tax Act — and our HRA exemption calculator computes all three conditions simultaneously, highlights the minimum, and shows the taxable HRA balance. Note that HRA exemption is available only under the Old Tax Regime — it is not available if you opt for the New Tax Regime under Section 115BAC.

1. Enter Your Salary Details: Input your basic salary (including Dearness Allowance if DA forms part of salary for HRA purposes), the HRA component received from your employer, and the actual rent paid to your landlord. Select monthly or annual input mode and your city type (metro or non-metro).
2. Instant Browser-Based Calculation: Click “Calculate HRA Exemption” and the HRA exemption calculator applies all three Section 10(13A) conditions entirely in your browser. No data is sent to any server — your salary and rent details stay completely private on your device.
3. Review the Three Conditions: The HRA exemption calculator displays all three conditions with their computed values, highlights the minimum (which is the actual exemption), and shows the taxable HRA balance. An annual summary is also provided for monthly inputs.

• Condition 1 — Actual HRA Received: The full HRA component received from your employer as shown in your salary slip. This is the upper limit — you cannot claim more exemption than the HRA you actually received.
• Condition 2 — 50%/40% of Basic Salary: 50% of basic salary for employees living in metro cities (Delhi, Mumbai, Kolkata, Chennai), or 40% for employees in all other cities. This condition rewards employees in high-rent metro cities with a higher exemption ceiling.
• Condition 3 — Rent Paid Minus 10% of Basic: The actual rent paid minus 10% of basic salary. This condition ensures that only the rent exceeding 10% of basic salary qualifies for exemption — preventing abuse of the HRA benefit for nominal rent payments.
• HRA Exemption = Minimum of All Three: The actual exempt amount is the smallest of the three conditions. The remaining HRA (HRA received minus exemption) is added to your gross taxable income.

The HRA exemption calculator computes the exemption based on the three statutory conditions. However, there are additional rules to be aware of: HRA exemption is available only if you are actually paying rent — you cannot claim it if you live in your own house or a house owned by your spouse. If your annual rent exceeds ₹1 lakh, you must provide your landlord's PAN to your employer. The HRA exemption is not available under the New Tax Regime (Section 115BAC) — it applies only under the Old Tax Regime. For employees whose DA forms part of salary for retirement benefit purposes, DA should be included in the basic salary for HRA calculation. Always consult a qualified Chartered Accountant for your specific tax situation.