HRA Calculator 2026 - House Rent Allowance Exemption

Calculate your HRA (House Rent Allowance) tax exemption with our free HRA calculator for India. Find out how much of your HRA is tax-exempt based on your basic salary, actual HRA received, rent paid, and city of residence (metro or non-metro). HRA exemption is one of the most common tax-saving benefits for salaried employees living in rented accommodation. Our calculator uses the official income tax rules to compute the maximum HRA exemption you can claim. Enter your salary details and rental information to get instant calculations. Essential for salaried professionals planning their tax-saving strategy under the old tax regime. The calculator helps you understand how much of your HRA component is taxable and how much is exempt, enabling better tax planning and documentation for your income tax return filing.

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Calculate HRA Exemption

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How HRA Exemption is Calculated

HRA exemption is calculated as the minimum of three amounts. Understanding this calculation helps you plan your rent and maximize tax savings.

HRA Exemption Formula

HRA Exemption = Minimum of:

  1. Actual HRA received
  2. Rent paid minus 10% of basic salary
  3. 50% of basic salary (metro) OR 40% of basic salary (non-metro)

HRA Calculation Example

Metro City Example

Basic Salary (Annual):₹6,00,000.00
HRA Received (Annual):₹2,40,000.00
Rent Paid (Annual):₹3,00,000.00

Calculating three amounts:
1. Actual HRA: ₹2,40,000.00
2. Rent - 10% Basic: ₹3,00,000.00 - ₹60,000.00 = ₹2,40,000.00
3. 50% of Basic: ₹3,00,000.00

HRA Exemption (Minimum):₹2,40,000.00
Taxable HRA:₹0.00

HRA Exemption Comparison: Metro vs Non-Metro

Basic SalaryRent PaidMetro ExemptionNon-Metro Exemption
₹40,000/month₹15,000/month₹1,32,000.00/year₹1,32,000.00/year
₹60,000/month₹25,000/month₹2,28,000.00/year₹2,16,000.00/year
₹80,000/month₹35,000/month₹3,24,000.00/year₹3,24,000.00/year

Frequently Asked Questions

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