Get accurate HRA calculations in minutes and maximize your tax savings.
HRA Calculator
Exempted HRA: ₹0.00
Taxable HRA: ₹0.00
Actual HRA Received: ₹0.00
50% of Basic Salary: ₹0.00
Rent Paid in Excess of 10% of Salary: ₹0.00
Amount of Exempted HRA: ₹0.00
HRA Chargeable to Tax: ₹0.00
How much HRA is exempt from tax?
Use our HRA Calculator to instantly calculate your tax-free HRA and know how much of your house rent allowance is taxable. Whether you live in a metro city or a non-metro, our tool simplifies the HRA calculation process with ease.
Enter your details below:
- Basic Salary Received: ₹
- Dearness Allowance (DA) Received: ₹
- HRA Received: ₹
- Total Rent Paid: ₹
- Do you live in Delhi, Mumbai, Kolkata, or Chennai?
- Yes
- No
Important Information: If you do not receive HRA, you can still claim up to ₹60,000 under Section 80GG for tax deductions.
How the HRA Exemption Works:
When you receive HRA, a portion of it can be exempt from tax based on the least of the following three factors:
- Actual HRA Received
- Rent Paid Minus 10% of Salary
- 50% of Basic Salary (for metro cities) or 40% of Basic Salary (for non-metro cities)
Our HRA Exemption Calculator helps you determine the exempted amount and the taxable portion.
Example HRA Calculation:
Raghu’s Scenario in Mumbai:
- Basic Salary: ₹50,000
- HRA Received: ₹1,00,000
- Monthly Rent Paid: ₹15,000
Here’s how the exemption is calculated:
- Actual HRA received: ₹1,00,000
- Rent Paid (-) 10% of Salary: ₹1,20,000
- 50% of Basic Salary: ₹3,00,000
In Raghu’s case, the least of the above is ₹1,00,000, which means Raghu can claim ₹1,00,000 as tax-free HRA.
Can You Claim HRA if You Live with Parents?
Yes! If you live with your parents and pay rent, you can still claim HRA, provided your parents own the house and declare the rent you pay as rental income in their tax returns.
Forgot to Submit Rent Receipts?
No worries! You can still claim HRA while filing your income tax returns, even if you missed submitting the rent receipts to HR.
Key Benefits of Using This HRA Calculator
- Quick Results: Get an accurate HRA tax exemption calculation in seconds.
- Easy to Use: Simple form to enter your salary and rent details.
- Save Taxes: Maximize your HRA exemptions and reduce your taxable income.
FAQ About HRA Exemption and Calculation:
1. How do I calculate my HRA deduction?
To calculate your HRA deduction, the least of the following three will be considered:
- The actual HRA received from your employer.
- The rent paid minus 10% of your basic salary.
- 50% of your basic salary (for metro cities) or 40% (for non-metro cities).
You can use our HRA Calculator to quickly find out which of these three factors gives you the largest tax exemption.
2. Can I claim HRA while paying a home loan?
Yes, you can claim both HRA and home loan deductions simultaneously. If you are paying off a home loan for a property you own but are living in a rented accommodation, you are eligible to claim HRA exemptions for the rent you pay. This can help you reduce your taxable income further.
3. What if my landlord does not provide a PAN?
If you pay more than ₹1 lakh in rent annually, your landlord’s PAN is mandatory for claiming HRA exemption. Without the PAN, you will not be able to avail the exemption. Ensure your landlord provides this information when submitting rent receipts.
4. How is HRA calculated for tax purposes?
- The actual amount of HRA you receive from your employer.
- Rent paid (minus 10% of your salary).
- A percentage of your basic salary, which is 50% for metro cities and 40% for non-metro cities.
The least of these three factors will be exempt from tax, and the rest will be added to your taxable salary.
5. Can I claim HRA if I live in a rented property owned by my parents?
Yes, you can claim HRA even if you live in a property owned by your parents, provided that you pay them rent. Your parents must declare the rent you pay as rental income in their tax returns for you to be eligible for the exemption. This is a legal way to claim HRA while living with your parents.