HRA Calculator
Calculate your tax-exempt House Rent Allowance (HRA) in India using the standard least-of-three rule from basic salary, HRA received, rent paid and city type.
Salary for HRA rules = basic salary + dearness allowance to the extent it forms part of retirement benefits + commission fixed as a percentage of turnover achieved by the employee.
Constant-year assumption: if salary, HRA, rent or city changes during the year, calculate each monthly segment separately and add the segment exemptions.
This is an estimate report, not a tax receipt, rent receipt or filing document.
Gross pay? Salary calculator · gratuity: Gratuity calculator.
Work out your annual HRA exemption
The tool applies the standard least-of-three rule and shows which component binds. It restricts the 50% city factor to Delhi, Mumbai, Kolkata and Chennai and assumes the entered monthly values stay constant for the year.
FAQ
How is HRA exemption calculated?
The exempt amount is the least of: actual HRA received, rent paid minus 10% of salary for HRA rules, and 50% of that salary in Delhi, Mumbai, Kolkata or Chennai, or 40% in every other city.
What does salary mean for the HRA calculation?
Salary means basic salary plus dearness allowance to the extent it forms part of retirement benefits, plus commission fixed as a percentage of turnover achieved by the employee.
Which cities qualify for the 50% metro limit?
Only Delhi, Mumbai, Kolkata and Chennai. Other cities use the 40% limit for this calculation.
What if salary, rent or city changes during the year?
Calculate the least-of-three exemption separately for each period or month in which the inputs are constant, then add those segment exemptions. This tool’s main calculation assumes the same monthly values for all 12 months.
Old vs new tax regime?
Under the old regime, HRA exemption reduces taxable income if you pay rent. The new regime (default from FY 2023-24) generally does not allow HRA deduction — compare both before choosing.
Is the printed report a tax voucher?
No. It is an estimate report, not a tax receipt, rent receipt or filing document. Confirm the facts and evidence with your employer or tax adviser.
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