HRAPlan

India HRA Calculator

Enter your basic salary, HRA received, and rent paid — see exactly how much HRA is exempt and how much is taxable.

Basic salary (annual)

Rs.

HRA received (annual)

Rs.

Rent paid (annual)

Rs.

City type

What you entered

Basic salary: Rs. 6,00,000HRA received: Rs. 3,00,000Rent paid: Rs. 2,40,000City type: Metro

1
Actual HRA received (annual)
Rs. 3,00,000.00= Rs. 3,00,000.00
2
50% of basic salary (metro)
Rs. 6,00,000.00 × 50%= Rs. 3,00,000.00
3
Rent paid − 10% of basic salary
Rs. 2,40,000.00 − Rs. 6,00,000.00 × 10%= Rs. 1,80,000.00
4
HRA exemption (minimum of the three)
min(Rs. 3,00,000.00, Rs. 3,00,000.00, Rs. 1,80,000.00)= Rs. 1,80,000.00
5
Taxable HRA
Rs. 3,00,000.00 − Rs. 1,80,000.00= Rs. 1,20,000.00

Result

HRA exemption: Rs. 1,80,000

Of the Rs. 3,00,000 HRA received, Rs. 1,80,000 is exempt from tax and Rs. 1,20,000 is taxable.

HRA exemption for common salary and rent combinations

The exemption is the smallest of three figures: actual HRA received, 50% of basic in a metro (40% elsewhere), and rent paid minus 10% of basic. All amounts are annual, and these rows use the metro rate.

Basic salary	HRA received	Rent paid	50% of basic	Rent minus 10% of basic	Exempt	Taxable HRA
Rs. 3,00,000	Rs. 1,50,000	Rs. 1,20,000	Rs. 1,50,000	Rs. 90,000	Rs. 90,000	Rs. 60,000
Rs. 5,00,000	Rs. 2,50,000	Rs. 1,80,000	Rs. 2,50,000	Rs. 1,30,000	Rs. 1,30,000	Rs. 1,20,000
Rs. 6,00,000	Rs. 3,00,000	Rs. 2,40,000	Rs. 3,00,000	Rs. 1,80,000	Rs. 1,80,000	Rs. 1,20,000
Rs. 8,00,000	Rs. 4,00,000	Rs. 3,60,000	Rs. 4,00,000	Rs. 2,80,000	Rs. 2,80,000	Rs. 1,20,000
Rs. 12,00,000	Rs. 6,00,000	Rs. 4,80,000	Rs. 6,00,000	Rs. 3,60,000	Rs. 3,60,000	Rs. 2,40,000

In every row here the third test binds - rent minus 10% of basic is the smallest of the three - and that is the usual case for salaried employees whose rent is modest relative to salary. It is also the lever you can actually see: exemption rises rupee for rupee with rent until one of the other two limits takes over. The metro rate of 50% applies to Delhi, Mumbai, Kolkata and Chennai; everywhere else uses 40%, which only changes the answer when that second test is the binding one. HRA exemption exists only under the old tax regime - the new regime removes it, which is a large part of why the regime comparison matters. Rent receipts are required, and the landlord's PAN if annual rent exceeds Rs. 1,00,000.

Three conditions, lowest wins

HRA exemption is the minimum of three amounts: (1) actual HRA received, (2) 50% of basic salary for metro cities or 40% for non-metro, and (3) actual rent paid minus 10% of basic salary. The lowest of the three is your tax-free portion.

Only available under the old tax regime

HRA exemption is only available if you opt for the old tax regime — the new regime (default from FY 2023-24) doesn't allow HRA exemption, so the benefit only matters if your total old-regime deductions make it worth choosing that regime.

Frequently asked questions

How is HRA exemption calculated?

HRA exempt = minimum of: (1) Actual HRA received, (2) 50% of basic salary (metro) or 40% (non-metro), (3) Rent paid − 10% of basic salary. Example: basic ₹40,000, HRA ₹20,000, rent ₹15,000, metro city. (1) ₹20,000, (2) ₹20,000, (3) ₹15,000 − ₹4,000 = ₹11,000. Exempt: ₹11,000. Taxable HRA: ₹9,000.

Can I claim HRA if I pay rent to parents?

Yes — you can pay rent to parents and claim HRA exemption, provided: the parent actually owns the property (or is the tenant), you have a proper rent agreement, and rent is paid through bank transfer (not cash). The parent must declare the rent as income. This is a legitimate tax-planning strategy.

Which cities are 'metro' for HRA?

Only Delhi, Mumbai, Kolkata, and Chennai are classified as metro cities for HRA purposes (50% of basic salary). All other cities — including Bangalore, Hyderabad, Pune, Ahmedabad — are non-metro (40% of basic salary). This classification hasn't changed despite these cities' growth.