Tax-free portion of house rent allowance. The HRA Exemption Calculator takes monthly basic salary + da, hra received per month, rent paid per month, city and returns hra exempt from tax per year plus exempt per month, taxable hra per year. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Indian tax rules change with each Finance Act and GST Council meeting. The rates here follow the current published rules, but confirm the figures on the official portals or with a chartered accountant before filing or invoicing. Use the worked example below to check the maths against your own figures.
How the HRA Exemption Calculator works
The exempt part of house rent allowance is the lowest of three figures, computed month by month. It is available only in the old tax regime and only when you actually pay rent (with the landlord's PAN if rent exceeds ₹1 lakh a year).
Worked example
With the example values (monthly basic salary + da of ₹40,000, hra received per month of ₹20,000, rent paid per month of ₹18,000, city "Metro: Delhi, Mumbai, Kolkata or Chennai (50%)"), the hra exempt from tax per year is ₹168,000.00; exempt per month ₹14,000.00, taxable hra per year ₹72,000.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Old regime only; basic includes dearness allowance where it counts for retirement benefits.
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Frequently Asked Questions
How is hra exempt from tax per year calculated?
exemption = least of: HRA received; rent paid − 10% of basic; 50% of basic (metro) or 40% (non-metro).
Which figures do I need?
Monthly basic salary + da, hra received per month, rent paid per month, city. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Are the rates current?
The calculator uses the rates and rules published for the current financial year and shows them under the result. Rates change with each Budget and GST Council decision, so verify on the official portal before filing.
What assumptions does this calculator make?
Old regime only; basic includes dearness allowance where it counts for retirement benefits.
