Salary & Payroll

    HRA Calculator

    Calculate your HRA exemption under Section 10(13A) using the standard 3-way minimum: actual HRA, 50%/40% of salary, and rent paid minus 10% of salary.

    Inputs
    Result
    HRA Exempt
    ₹2,40,000
    • Actual HRA received₹2,40,000
    • 50% of Salary₹3,00,000
    • Rent − 10% of Salary₹2,40,000
    • Taxable HRA₹0
    Visual Breakdown
    Step-by-step calculation
    1. Salary (Basic + DA) = ₹6,00,000
    2. HRA exempt = min(A, B, C) = min(₹2,40,000, ₹3,00,000, ₹2,40,000) = ₹2,40,000
    How this is calculated
    HRA Exempt = min(Actual HRA, 50%/40% of Basic+DA, Rent − 10% of Basic+DA)
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Salaried employees claiming HRA against actual rent paid.
    • Deciding metro vs non-metro city choice from a tax perspective.
    • Modelling own-home purchase vs continued renting under HRA.
    Overview

    Understanding the HRA

    House Rent Allowance exemption under Section 10(13A) is one of the largest tax savings for salaried employees living in rented accommodation. Exempt amount = minimum of (actual HRA received, 50% of basic in metro / 40% non-metro, actual rent − 10% of basic). This calculator returns the exempt HRA, taxable HRA and net tax saving under the old regime (HRA exemption is not available in the new regime).

    Delhi, Mumbai, Kolkata and Chennai are metros for HRA purposes (50% cap); Bengaluru, Hyderabad, Pune are non-metros (40%). If annual rent > ₹1 lakh, the landlord's PAN must be reported to the employer (or in ITR) — else exemption can be denied.

    Worked examples

    Real-world scenarios, step-by-step

    Bengaluru, Basic ₹60,000 pm, HRA ₹24,000 pm, Rent ₹25,000 pm

    Software engineer renting a 2BHK.

    • Actual HRA = ₹2,88,000
    • 40% of basic = ₹2,88,000
    • Rent − 10% basic = 3,00,000 − 72,000 = ₹2,28,000
    • Exempt = min = ₹2,28,000 | Taxable HRA = ₹60,000
    Exempt HRA ₹2.28 L.
    Pro tips

    Common mistakes to avoid

    Not collecting rent receipts monthly / annually — required at scrutiny.

    Missing landlord PAN when rent > ₹1 L/year — exemption denied.

    Claiming HRA under new regime — not allowed.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Pay rent via bank transfer — creates an audit trail beyond receipts.

    • Parents own the home? Pay them rent legitimately — HRA exempt for you, rent-income taxable for them (often at lower slab).

    Frequently asked questions

    Is HRA exemption available in the new regime?+

    No. HRA under Section 10(13A) is available only in the old regime.

    Do I need rent receipts?+

    Yes if annual rent exceeds ₹1 lakh, along with landlord's PAN.

    Keep exploring

    Explore topics

    People also ask

    Is HRA exemption available in the new regime?+

    No. HRA under Section 10(13A) is available only in the old regime.

    via HRA Calculator
    Are 80C/80D deductions available in the new regime?+

    Most Chapter VI-A deductions (80C, 80D, 80E, HRA, LTA) are NOT available in the new regime. Only NPS employer contribution and standard deduction survive.

    via Income Tax Calculator FY 2025-26
    Does the calculator include the annual bonus?+

    The bonus / variable pay is shown separately since it is typically paid annually, not monthly.

    via In-Hand Salary Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). HRA Calculator — Taxpex. Retrieved from https://taxpex.com/tools/salary-payroll/hra-calculator
    HTML link
    <a href="https://taxpex.com/tools/salary-payroll/hra-calculator">HRA Calculator — Taxpex</a> — Taxpex Consultancy