What Is an HRA Calculator?
An HRA calculator estimates how much of the House Rent Allowance received from an employer may be exempt from income tax. It also shows the portion of HRA that may remain taxable.
The calculation is useful for salaried employees who receive HRA as part of their salary and pay rent for residential accommodation. The exemption is calculated under Section 10(13A), subject to the applicable income-tax rules and the employee's chosen tax regime.
Instant Calculation
Get an immediate estimate without manually comparing all three HRA exemption limits.
Metro Adjustment
The tool automatically applies the 50% or 40% salary limit based on the rented house location.
Private and Accessible
The calculation runs inside your browser, and no salary details are submitted to a database by this page.
How Is HRA Exemption Calculated?
The exempt amount is normally the lowest of the following three values:
- The actual HRA received from the employer.
- Actual rent paid minus 10% of eligible salary.
- 50% of eligible salary when the rented house is in Delhi, Mumbai, Kolkata or Chennai, or 40% when it is in another city.
For this calculation, eligible salary generally includes basic salary, dearness allowance when it forms part of retirement benefits, and turnover-based commission where applicable.
HRA Calculation Example
| Calculation item | Monthly value | Annual value |
|---|---|---|
| Basic salary | ₹50,000 | ₹6,00,000 |
| HRA received | ₹20,000 | ₹2,40,000 |
| Rent paid | ₹18,000 | ₹2,16,000 |
| Rent minus 10% of salary | ₹13,000 | ₹1,56,000 |
| 40% of salary for a non-metro city | ₹20,000 | ₹2,40,000 |
| Eligible HRA exemption | ₹13,000 | ₹1,56,000 |
How to Use This HRA Calculator
- Select whether your figures are monthly or annual.
- Enter your basic salary and the HRA received.
- Enter the rent paid for the residential accommodation.
- Select the location of the rented house.
- Add eligible DA and turnover-based commission, if applicable.
- Select the number of eligible months for monthly calculations.
- Choose an estimated tax rate to view an approximate tax saving.
- Click the Calculate HRA Exemption button.
Important Documents for an HRA Claim
Your employer or the Income Tax Department may require supporting evidence for the exemption. Depending on your circumstances, you should maintain:
- Rent receipts covering the relevant rental period.
- A valid rent agreement with the landlord.
- Proof of rent payments, especially for significant payments.
- The landlord's PAN where required under applicable rules.
- Salary slips or Form 16 showing the HRA received.