HRA Exemption Calculator
Enter monthly basic salary, HRA received, rent paid, and whether you are in a metro (50% rule) or non-metro (40%). We show the three statutory components and the exempt amount — illustrative only.
Inputs (monthly)
Results
HRA exempt per month (estimated)
① Actual HRA received₹0
② 50% of basic salary₹0
③ Rent paid − 10% of basic₹0
Exemption = minimum of ①, ②, and ③ (if positive).
HRA exemption rules (overview)
House Rent Allowance is a salary component many employers offer. Under the old tax regime, a portion can be exempt from tax if you pay rent for residential accommodation — subject to the least of three amounts each month: (1) actual HRA received; (2) 50% of basic salary if you live in specified metros (commonly Delhi, Mumbai, Kolkata, Chennai) or 40% elsewhere; and (3) rent paid minus 10% of basic salary. This calculator implements that textbook structure on monthly inputs.
New tax regime note: many deductions available in the old regime (including HRA-style exemptions) may not apply in the same way under the new concessional slabs. Always reconcile with Form 16, your payroll team, and a chartered accountant before filing — this page is not legal advice.
Documents: Employers often ask for rent receipts, rental agreements, and landlord PAN when annual rent exceeds ₹1,00,000. Keep proofs aligned with actual bank transfers where possible. Fake receipts carry serious consequences.
Common mistakes: Claiming HRA while not paying rent, mismatch between declared rent and cash flows, or forgetting that the exemption uses basic salary only (not gross). Also remember: if you live in a self-owned house or with parents without genuine rent, HRA exemption generally does not apply — paying rent to parents is allowed only if it is a bona fide arrangement with documentation and the parent includes it in income if required.
Plug the monthly exempt figure into our income tax calculator alongside other old-regime deductions to see directional tax impact — still verify with professional advice.
Plan taxes holistically
Use official AIS/Form 26AS and a CA for filing — tools here are educational.
Frequently asked questions
Is HRA exemption available in the new tax regime?
The classic HRA exemption path is tied to the old regime with documentation. The new concessional regime uses a different bundle of slabs and deductions—confirm what applies to you before claiming.
Why can component three (rent minus ten percent of basic) be zero or negative?
If rent is less than ten percent of basic, that leg does not help; we clamp it at zero so the minimum-of-three rule still applies.
Should I use basic salary or gross salary for HRA rules?
The textbook rule uses basic salary for the percentage and rent-minus-ten-percent tests. Your payslip labels may differ—follow your employer’s definition.
What documents do employers usually ask for?
Rent receipts, agreements, and landlord PAN are commonly required when annual rent crosses ₹1,00,000—keep records that match actual payments.
Can I claim HRA while living with parents?
Only if there is a genuine rental arrangement with documentation and the landlord includes taxable rent where required. Fabricated rent is risky.
Are my salary numbers uploaded?
No. The tool runs locally in your browser.