HRA Exemption Calculator

What is HRA? – House Rent Allowance (HRA) is a component of your salary that helps meet rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be exempt from tax, reducing your taxable income. The exemption is the least of the following three amounts:

• Actual HRA received from employer (annual).
• For metro cities (Delhi, Mumbai, Chennai, Kolkata): 50% of salary (basic + dearness allowance). For non‑metro cities: 40% of salary.
• Actual rent paid minus 10% of salary.

Exempt HRA = min( HRA received, (metro?50%:40%)×salary, rent – 10%×salary )

Salary here means basic salary plus dearness allowance (if forming part of retirement benefits). Our calculator uses the basic salary you enter.

🔢 Example calculation

Suppose your monthly basic salary is ₹50,000, HRA received is ₹20,000, rent paid is ₹15,000, and you live in a metro city (Mumbai). For the full financial year (12 months):

• Actual HRA received = ₹20,000 × 12 = ₹2,40,000.
• 50% of salary = 50% × ₹50,000 × 12 = ₹3,00,000.
• Rent paid – 10% of salary = (₹15,000 × 12) – (10% × ₹50,000 × 12) = ₹1,80,000 – ₹60,000 = ₹1,20,000.

The least of these three is ₹1,20,000 – that is the exempt HRA. The remaining HRA (₹2,40,000 – ₹1,20,000 = ₹1,20,000) is taxable.

💡 Tax savings

If you fall in the 30% tax bracket, the tax saved would be approximately 30% of the exempt amount: ₹1,20,000 × 30% = ₹36,000. Our calculator shows this approximate saving.

🌍 Multi‑currency support

Choose your preferred currency from the dropdown. All amounts are displayed with the selected symbol; no exchange rate conversion is applied. This is useful for NRIs or those comparing salaries in different countries.

🔄 Real‑time updates

All inputs update the results instantly – no need to click Calculate (though the button remains for clarity). The chart and breakdown adjust immediately.