HRA Exemption Calculator — Tax Saving on Rent
Calculate your HRA exemption under Income Tax rules. See exactly which of the three conditions is limiting your exemption and how much tax you save.
Salary & Rent Details
City Type
Metro: Delhi, Mumbai, Chennai, Kolkata (50% basic). Non-Metro: 40% basic.
Monthly HRA Exemption
₹₹20,000
Annual exemption: ₹2.40 L | Tax saved: ₹₹72,000 (at 30%)
HRA Received
₹₹20,000
Taxable HRA
₹₹0
Annual Tax Saved
₹₹72,000
HRA Exemption
₹₹20,000
Three Conditions (IT Rules)
Actual HRA received from employer
₹₹20,000/mo
Rent paid minus 10% of basic salary
MIN₹₹20,000/mo
50% of basic salary (Metro) / 40% (Non-Metro)
₹₹25,000/mo
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What is HRA Exemption?
HRA (House Rent Allowance) is a component of your salary paid by your employer to meet accommodation expenses. If you live in a rented house, you can claim an exemption on part or all of your HRA under Section 10(13A) of the Income Tax Act. The exemption is calculated based on three conditions as per Rule 2A — and the minimum of the three is your tax-exempt amount. The remaining HRA is added back to your taxable income. This exemption can save significant tax — a salaried person paying ₹25,000/month rent in a metro city can save ₹65,000–₹90,000/year in tax, depending on their slab. This calculator shows which condition is limiting your exemption and your exact tax savings.
How to Use the HRA Calculator
- 1.City Type: Select Metro (Delhi, Mumbai, Kolkata, Chennai) for 50% basic, or Non-Metro for 40% basic as the third condition.
- 2.Basic Salary: Enter your monthly basic salary (from your payslip, not gross or CTC).
- 3.HRA Received: Enter the monthly HRA component as per your salary slip.
- 4.Rent Paid: Enter your actual monthly rent. Must be genuinely paid to a landlord.
- 5.Result: The calculator shows which condition is the limiting (minimum) factor and your monthly and annual exemption.
HRA Exemption — The Three Conditions
Actual HRA received from employer
As per your salary slip (monthly)
Fixed by your employer — cannot be changed.
Rent paid minus 10% of basic salary
Rent − (10% × Basic)
Increases as rent increases. Claim 0 if rent ≤ 10% of basic.
% of basic salary (city-dependent)
50% × Basic (Metro) or 40% × Basic (Non-Metro)
Fixed by your salary and city type.