HRA Calculator

The HRA (House Rent Allowance) exemption is one of the most valuable tax benefits available to salaried employees in India. If you live in a rented house and receive HRA as part of your salary, you can claim an exemption from income tax on a portion of the HRA. The exempt amount is the minimum of three figures: the actual HRA received, the actual rent paid minus 10% of your basic salary, and 50% of basic salary (for metro cities like Mumbai, Delhi, Kolkata, and Chennai) or 40% (for non-metro cities).

Metro cities for HRA purposes under Section 10(13A) of the Income Tax Act are Mumbai, Delhi, Kolkata, and Chennai. If you live in Bengaluru, Hyderabad, Pune, or any other city, you qualify for the 40% rate, not 50%. Many employees in Bengaluru mistakenly claim the 50% rate — this calculator applies the correct rule. Make sure your rent receipts match what you declare to your employer and keep documentation for rent above ₹1 lakh per year (PAN of landlord required).

If you don't receive HRA (for example, if you are self-employed or your employer doesn't provide HRA), you can still claim rent deduction under Section 80GG, subject to different limits. This calculator is specifically for salaried employees who receive HRA as part of their CTC. The tax savings shown assume you are in the 30% income tax slab — your actual savings will differ if you are in a lower slab.