Finance
HRA Exemption Calculator India
Work out how much of your HRA is actually exempt, using the three-way minimum most people get wrong.
Interactive tool
HRA Exemption Calculator India
Exempt from tax
₹1,56,000
Taxable HRA
₹84,000
Share exempt
65%
Choice IQ readout
The exemption is the lowest of three numbers, and here that is rent paid minus 10% of basic. Raising the other two changes nothing, which is why increasing declared rent past a point stops helping.
- Keep rent receipts. Above Rs 1 lakh of annual rent you also need the landlord's PAN.
- HRA exemption only exists under the old tax regime. Compare both regimes before claiming it.
- Rent paid to a parent is allowed if they actually own the property and declare the income.
Tool guide
How to use this hra exemption calculator india
HRA exemption is not simply the HRA on your payslip. It is the lowest of three figures - the HRA you receive, rent paid minus 10% of basic, and 50% of basic in a metro or 40% elsewhere. Because it is a minimum, raising the wrong number changes nothing. This calculator shows all three and tells you which one is actually binding.
Formula
Exempt = lowest of: actual HRA received; rent paid minus 10% of basic + DA; 50% of basic + DA in a metro, or 40% in a non-metro.
Decision guide
When to use this hra exemption calculator india
Best use case
Use this page when you need a quick first estimate before comparing products, lenders, subscriptions, or buying options. It is built for practical planning, not final professional advice.
Inputs needed
Keep these numbers ready: Monthly basic + DA, HRA received, Rent paid, Metro or non-metro. If you are unsure, run one conservative estimate and one optimistic estimate.
Shareable result
After calculating, use the result link to save or share the same inputs. The URL parameters keep the calculation easy to revisit.
Common examples
Readers usually use this tool for checking a payslip declaration, deciding between old and new regime, working out the rent that maximises exemption. The best way to read the output is to compare scenarios instead of treating one result as a final answer.
How it works
HRA exemption is not simply the HRA on your payslip. It is the lowest of three figures - the HRA you receive, rent paid minus 10% of basic, and 50% of basic in a metro or 40% elsewhere. Because it is a minimum, raising the wrong number changes nothing. This calculator shows all three and tells you which one is actually binding.
Examples
- Checking a payslip declaration
- Deciding between old and new regime
- Working out the rent that maximises exemption
FAQ
Can I claim HRA under the new tax regime?
No. HRA exemption is one of the deductions the new regime removes. If your HRA exemption is large, that alone can make the old regime cheaper - compare both before choosing.
Can I pay rent to my parents and claim HRA?
Yes, if the arrangement is genuine. Your parents must actually own the property, you must actually pay the rent, and they must declare it as income in their return. Paper arrangements with no money moving are disallowed.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai. Bengaluru, Hyderabad, Pune and every other city are treated as non-metro, which caps the exemption at 40% of basic rather than 50%.
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