HRA Calculator – Fast & Accurate
House Rent Allowance (HRA) is a crucial salary component that provides substantial tax benefits for employees living in rented accommodations. Our HRA Calculator helps you determine exactly how much of your HRA is exempt from income tax under Section 10(13A). By entering your basic salary, HRA received, actual rent paid, and your city type (Metro vs. Non-Metro), you can quickly find your exempt amount and plan your taxes efficiently.
Tax Exemption Limit
Instantly applies the complex 'least of three' formula mandated by the IT department.
Metro vs Non-Metro
Automatically adjusts between the 50% (Metro) and 40% (Non-Metro) salary rules.
Salary Deductions
See exactly how much of your HRA becomes taxable income.
Old Tax Regime Planning
Essential for those comparing savings between the Old and New tax regimes.
Frequently Asked Questions
How is HRA exemption calculated?
It is the least of: 1) Actual HRA received, 2) 50% of basic salary for metro (40% for non-metro), 3) Actual rent paid minus 10% of basic salary.
Is HRA exemption available in the New Tax Regime?
No, HRA exemption is only available if you opt for the Old Tax Regime. The new tax regime abolishes most standard deductions including HRA.
Can I claim HRA if I pay rent to my parents?
Yes, as long as you have valid rent receipts and a rent agreement, and they declare it as rental income.
What constitutes 'Basic Salary' for HRA?
For HRA calculation, 'Salary' includes your Basic Pay, Dearness Allowance (DA), and any fixed percentage commission based on turnover.
