HRA Exemption Calculator
Find how much of your HRA is tax-free.
Exemption is the lowest of: HRA received, rent minus 10% of salary, and 50%/40% of salary. Keep rent receipts for claims.
How it works
Your HRA exemption is the lowest of three numbers: the HRA you receive, the rent you pay minus 10% of your salary (basic + DA), and 50% of salary in metro cities (40% elsewhere). The rest of your HRA is added to taxable income.
Example
Basic ₹60,000/month, HRA ₹30,000/month, rent ₹25,000/month in a metro city: exempt HRA is ₹19,000/month (₹2.28 lakh/year). The remaining ₹11,000/month is taxable.
FAQs
Which cities count as metro?
Delhi, Mumbai, Chennai and Kolkata. Everywhere else in India counts as non-metro for HRA (50% vs 40% of salary).
Do I need rent receipts?
Yes, keep rent receipts for your employer. If yearly rent exceeds ₹1 lakh, you must also share your landlord's PAN.
Can I claim HRA living with parents?
Yes, if you genuinely pay rent — keep a rent agreement and payment proof. The arrangement must be real, not just on paper.