Salary tax
HRA Calculator
Calculate HRA exemption and taxable HRA using salary, HRA received, rent paid, and city type.
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Instant report
Educational estimate
Inputs
Metro city₹6,00,000
₹0
₹2,40,000
₹3,00,000
Metro city
Use 50% of salary for metro cities, 40% for non-metro cities.Results
Three-rule testHRA Exemption
₹2,40,000
Taxable HRA
₹0
Salary for HRA
₹6,00,000
Rent minus 10% salary
₹2,40,000
HRA exemption is the minimum of actual HRA received, rent paid minus 10% of salary, and 50% or 40% of salary depending on city type.
Detailed Breakdown
Metro| Rule | Value |
|---|---|
| Actual HRA received | ₹2,40,000 |
| Rent paid minus 10% of salary | ₹2,40,000 |
| 50% of salary | ₹3,00,000 |
| Exempt HRA | ₹2,40,000 |
| Taxable HRA | ₹0 |
Assumptions and methodology
Transparent calculation notes for HRA Calculator.
Formula used
Lowest of three HRA rules
Exemption = min(actual HRA, rent - 10% salary, 50% or 40% salary)
Salary for HRA is basic salary plus dearness allowance. Metro cities use 50%; non-metro cities use 40%.
Methodology
- Calculate salary for HRA from basic salary and dearness allowance.
- Compute the three statutory comparison values.
- Use the lowest value as exempt HRA and treat the balance as taxable HRA.
Core assumptions
- Rent paid and HRA received are annual amounts.
- Metro setting determines whether 50% or 40% salary limit applies.
- The user is eligible to claim HRA under the chosen tax regime.
Not included
- Rent proof validation, landlord PAN rules, employer payroll treatment, and new-regime restrictions are excluded.
- Final eligibility depends on documents and filing treatment.
About HRA Calculator
Guide1What is HRA Exemption?
House Rent Allowance (HRA) is a salary component that may be partly or fully exempt from tax when you receive HRA from your employer and pay rent for accommodation.
The exemption depends on salary, HRA received, rent paid, and whether the rented house is in a metro or non-metro city.
2HRA Exemption Formula
HRA exemption is the lowest of these three values:
- Actual HRA received
- Rent paid minus 10% of salary
- 50% of salary for metro cities or 40% of salary for non-metro cities
Salary for HRA usually means basic salary plus dearness allowance where applicable.
3How to Use This Calculator
- Step 1: Enter basic salary and dearness allowance
- Step 2: Enter HRA received and annual rent paid
- Step 3: Select metro or non-metro city
- Step 4: Review exempt HRA, taxable HRA, and the three-rule breakdown
4Documents and Practical Checks
- Keep rent receipts and rental agreement where applicable
- Landlord PAN may be required when annual rent crosses the prescribed threshold
- HRA exemption is generally not available under the new tax regime
- Employer payroll treatment and final ITR claim should be reconciled carefully