HRA Calculator
Maximize your tax savings on rent. Calculate your exact exemption.
House Rent Allowance (HRA) is a key component of your salary that helps you save tax if you live in a rented house. However, the entire HRA you receive is not tax-free. The exemption is calculated based on the "Least of 3" rule set by the Income Tax Department. Use this calculator to find out exactly how much of your HRA is tax-exempt and how much is taxable.
ℹ️ Check your salary slip for 'Basic'.
Total Tax Saved
₹0
assuming 30% tax slab
Analysis
You can claim ₹0 as a tax deduction.
HRA is one of the most efficient tax savers. If you live with parents, you can pay them rent to claim this.
How is HRA Exemption Calculated?
The Income Tax Department (Section 10(13A)) calculates your exemption as the lowest of the following three amounts:
1. Actual HRA
The exact HRA amount mentioned in your salary slip.
2. Rent - 10% Salary
Actual Rent paid minus 10% of your (Basic + DA).
3. 50% or 40% Limit
50% of Basic Salary for Metro cities, 40% for Non-Metro.
🏙️ Metro vs Non-Metro: The Big Confusion
Many people in Bangalore, Hyderabad, and Pune wrongly claim 50% exemption. According to the Income Tax Act, only 4 specific cities qualify as Metros for HRA purposes.
✅ Metro Cities (50% Limit)
- New Delhi
- Mumbai
- Kolkata
- Chennai
❌ Non-Metro Cities (40% Limit)
- Bangalore (Bengaluru)
- Hyderabad
- Pune, Gurgaon, Noida
- All other cities in India
Real Calculation Example
Let's assume your Basic Salary is ₹50,000, you receive ₹25,000 HRA, and you pay ₹20,000 Rent in Bangalore (Non-Metro).
| Condition | Calculation | Amount |
|---|---|---|
| 1. Actual HRA Received | Fixed | ₹ 25,000 |
| 2. 40% of Basic | 40% of ₹50,000 | ₹ 20,000 |
| 3. Rent - 10% Basic | ₹20,000 - ₹5,000 | ₹ 15,000 |
| Exempt HRA (Lowest) | Lowest of above | ₹ 15,000 |
| Taxable HRA | Received - Exempt | ₹ 10,000 |
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Frequently Asked Questions
Can I claim HRA if I live with my parents?▼
Yes, HRA can be claimed if rent is paid to parents and proper documentation is maintained.
What is the Metro vs Non-Metro rule?▼
HRA exemption limits differ for metro and non-metro cities, subject to prescribed conditions.