Free Finance Tool
HRA Calculator
Calculate your HRA exemption under old tax regime. Compare with new regime.
HRA Exempt from Tax
₹0
₹0
Taxable HRA
₹0
Annual Exemption
HRA Calculator: Calculate House Rent Allowance Exemption
Our HRA calculator computes your House Rent Allowance exemption under the old tax regime. HRA is a significant tax-saving component for salaried employees who pay rent for accommodation.
The house rent allowance calculator determines your exempt HRA based on your basic salary, HRA received, rent paid, and city of residence. It shows how much of your HRA is tax-free and how much is taxable.
Remember: HRA exemption is available only under the old tax regime. If you opt for the new regime, you cannot claim HRA exemption. Compare both regimes to find which saves more tax.
HRA Exemption = Min(1) HRA Received, (2) 50% of Basic (metro) or 40% (non-metro), (3) Rent Paid - 10% of Basic
HRA Calculation Example
Employee: Basic: ₹60,000/month, HRA: ₹30,000/month, Rent: ₹25,000/month, Metro City
- Actual HRA: ₹30,000
- 50% of Basic (metro): ₹30,000
- Rent - 10% Basic: ₹25,000 - ₹6,000 = ₹19,000
- HRA Exemption: ₹19,000/month (minimum of above three)
- Taxable HRA: ₹30,000 - ₹19,000 = ₹11,000/month
Popular Searches
Frequently Asked Questions
What is HRA?
House Rent Allowance (HRA) is a component of salary provided by employers to cover rental accommodation expenses. It is partially or fully exempt from tax under Section 10(13A) of the Income Tax Act.
How is HRA exemption calculated?
HRA exemption is the minimum of three amounts: (1) Actual HRA received, (2) 50% of basic salary (metro) or 40% (non-metro), (3) Rent paid minus 10% of basic salary.
Is HRA fully tax free?
No, only the exemption amount is tax free. The remaining HRA is added to your taxable income. If you do not pay rent or pay less than 10% of basic, you get no HRA exemption.
Can I claim HRA and home loan?
Yes, if you live in a different city from where you own a home. You can claim HRA for rented accommodation and home loan benefits simultaneously. But not if you live in your own home.
What documents for HRA?
You need: Rent receipts with PAN of landlord (if rent > ₹1 lakh/year), Rent agreement, Landlord's name and address. PAN of landlord is mandatory if annual rent exceeds ₹1,00,000.
HRA vs new regime?
Under new tax regime (default from 2023-24), HRA exemption is NOT available. Under old regime, you can claim HRA exemption. Choose old regime if HRA + other deductions exceed standard deduction benefit.