HRA Calculator
HRA exemption isn’t a simple percentage of your salary, it’s the minimum of three separate calculations, and most people never actually run all three. This calculator applies the exact statutory rule to your salary, rent, and city, and shows precisely how much of your HRA is tax-free.
What is an HRA Calculator?
An HRA calculator computes your House Rent Allowance exemption under Section 10(13A) of the Income Tax Act, which is defined as the minimum of three conditions: the actual HRA received, rent paid minus 10% of salary, and either 50% or 40% of salary depending on whether you live in a metro city. It’s available only under the Old Tax Regime.
HRA Is One Line in a Much Bigger Tax Picture
This calculator computes HRA exemption in isolation. In practice, HRA is just one input into your overall Old versus New regime decision, alongside 80C investments, home loan interest, and other deductions, and knowing your HRA exemption alone doesn’t tell you which regime actually saves you more tax this year.
How WealthNest.AI Helps Beyond This Calculator
WealthNest.AI tracks the investments and accounts that feed into your broader tax picture, ELSS, PPF, NPS, insurance premiums, automatically across your family, so an HRA number like this one can sit alongside your full Old-versus-New regime comparison rather than as a standalone figure.
See this alongside every other account your family holds, all in one place. Download the WealthNest.AI app to get started.
Frequently Asked Questions
Section 10(13A) specifically defines the exemption as the smallest of three conditions: HRA actually received, rent paid minus 10% of salary, and 50% or 40% of salary depending on city. Whichever of the three is lowest becomes your tax-free amount; the rest is added back to taxable income.
Only Delhi, Mumbai, Kolkata, and Chennai count as metro cities for the 50% rate. Every other city, including Bengaluru, Hyderabad, Pune, and Ahmedabad, uses the 40% non-metro rate.
No. Only Basic Salary plus Dearness Allowance counts. Conveyance, LTA, bonus, medical allowance, and other components are excluded from the calculation entirely.
No. HRA exemption is available only under the Old Tax Regime. Under the New Regime, your full HRA is taxable regardless of your actual rent.
Yes, valid rent receipts are required, and if your annual rent exceeds 1 lakh rupees, you must also submit your landlord's PAN. Rent paid to parents is allowed, but they must declare it as income.
