HRA Calculator
Calculate how much of your HRA is tax-exempt.
Input Details (Annual)
Metro Cities: Delhi, Mumbai, Kolkata, Chennai
Result
This amount is deducted from your taxable income.
This amount is added to your taxable income.
What is HRA Calculator?
An HRA (House Rent Allowance) Calculator helps you calculate the tax-exempt portion of your HRA and the taxable HRA amount. HRA is a component of salary provided by employers to employees who live in rented accommodation. A portion of HRA is exempt from income tax under Section 10(13A) of the Income Tax Act, helping salaried individuals save on taxes.
Our HRA Calculator uses the three conditions specified in the Income Tax Act to determine the exempted HRA amount. It considers your basic salary, dearness allowance, actual HRA received, rent paid, and whether you live in a metro or non-metro city to calculate the exact tax benefit you can claim.
HRA Exemption Calculation
HRA exemption is calculated as the minimum of three conditions:
- Actual HRA Received: The HRA amount you receive from your employer
- Rent Paid minus 10% of Salary: Actual rent paid minus 10% of (Basic Salary + DA)
- 50% of Salary (Metro) or 40% (Non-Metro): 50% of salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for other cities
The lowest of these three amounts is exempt from tax, and the remaining HRA is added to your taxable income.
Advantages of Using Braihn's HRA Calculator
- ✓Accurate Tax Calculation
Get precise HRA exemption calculation using the three-condition minimum rule as per Income Tax Act.
- ✓Metro/Non-Metro Consideration
Automatically applies the correct percentage (50% for metro, 40% for non-metro) based on your city.
- ✓Tax Savings Visualization
See exactly how much HRA is tax-exempt and how much is taxable, helping you plan your tax savings.
- ✓Rent Optimization
Understand how rent amount affects your HRA exemption and optimize your tax savings.
- ✓Free Tax Planning Tool
Calculate your HRA exemption without any cost. No registration required - use our calculator anytime.
Frequently Asked Questions
What documents are required to claim HRA exemption?
You need to submit rent receipts and a rent agreement to your employer. If annual rent exceeds ₹1 lakh, you also need to provide the PAN of your landlord. Keep these documents for income tax filing as well.
Can I claim HRA if I live in my own house?
No, HRA exemption is available only if you live in rented accommodation. If you own the house, you cannot claim HRA exemption, but you may be eligible for home loan interest deduction under Section 24(b).
What are the metro cities for HRA calculation?
The four metro cities are Delhi, Mumbai, Kolkata, and Chennai. For these cities, 50% of salary is considered for HRA exemption. For all other cities, 40% of salary is considered.
Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA if you pay rent to your parents, provided you have proper rent receipts and a rent agreement. However, your parents will need to show this rental income in their tax returns and pay tax on it if applicable.
What if my rent is more than my HRA?
If your rent exceeds HRA, you can still claim HRA exemption up to the amount of HRA received (subject to other conditions). The excess rent paid cannot be claimed as a deduction, but you may be eligible for deduction under Section 80GG if you don't receive HRA.
Need Help with Tax Planning?
Connect with verified tax professionals on Braihn who can help you with HRA exemption, tax planning, filing, and all your tax-related queries.
Find a Professional