How is exempt HRA calculated?
The exemption is the lowest of these three values: actual HRA received, rent paid minus 10% of basic salary, and 50% or 40% of basic salary depending on metro status.
finance tool
HRA Calculator
Calculate exempt and taxable HRA from annual basic salary, rent paid, HRA received, and metro vs non-metro rules.
Check how much HRA may stay exempt and how much becomes taxable.
Enter annual basic salary, rent, and HRA to compare the three standard rule limits in one place.
HRA outcome
₹2,40,000.00
This is the exempt HRA amount based on the standard rule comparison for the current inputs.
- Exempt HRA
- ₹2,40,000.00
- Taxable HRA
- ₹0.00
Rule comparison
- Actual HRA received
- ₹2,40,000.00
- Rent paid minus 10% of basic
- ₹2,40,000.00
- 50% of basic salary
- ₹3,00,000.00
Use this as an old-regime-oriented helper
This calculator is intended for quick HRA exemption checks using the standard annual-input rule set. Verify the final deduction with your payroll or tax adviser if your salary structure includes extra allowances.
About This Tool
This HRA calculator is useful when you want a quick exemption check without manually comparing rent, basic salary, and HRA values.
The tool shows all three rule limits so you can see why the exempt HRA is capped at a specific number instead of getting only a final answer.
How To Use
- 1. Enter annual basic salary, annual HRA received, and annual rent paid.
- 2. Turn on the metro-city option if the 50% basic-salary rule applies to you.
- 3. Review exempt HRA, taxable HRA, and the rule-by-rule comparison.
- 4. Share the result when you need to discuss the estimate with payroll or while comparing tax scenarios.
Why Users Check HRA Separately
- To compare old-regime tax planning choices before filing
- To understand whether rent paid is high enough to improve exemption
- To explain salary-breakup differences between offer letters and tax estimates
Frequently Asked Questions
Should I enter monthly or annual values?
Use annual values throughout this calculator. Keeping all three inputs annual makes the rule comparison easier to verify.
What tool should I pair with HRA estimation?
If you want a quick take-home estimate after salary structuring, use our Salary Calculator India.