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HRA Calculator

Calculate HRA tax exemption
Basic Salary (Monthly)₹40,000
₹
Dearness Allowance (DA)₹0
₹
HRA Received (Monthly)₹20,000
₹
Rent Paid (Monthly)₹15,000
₹
City Type
HRA Exemption (Yearly)
₹0
ConditionYearly Amount
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How is HRA Exemption Calculated?

House Rent Allowance (HRA) exemption helps salaried individuals save tax on rent paid. The exemption is strictly the minimum of three conditions.

HRA Exemption Formula

Minimum of:
1. Actual HRA Received
2. 50% (Metro) or 40% (Non-metro) of Basic
3. Actual rent paid minus 10% of Basic

Simple Scenario

You live in a non-metro city paying a rent of ₹15,000 per month. Your basic salary is ₹50,000 and you receive an HRA of ₹20,000. The exemption will be the minimum of: (1) ₹20,000, (2) 40% of 50k = ₹20,000, or (3) Rent paid (₹15k) - 10% of Basic (₹5k) = ₹10,000. Since ₹10,000 is the lowest, that is your tax-exempt amount!