HRA Calculator

Determine Your HRA Exemption

House Rent Allowance (HRA) is a common component of salary that helps employees save tax on rent paid. The exemption amount is determined by the Income Tax Act rules.

The Rule of Minimum 3

The tax exemption is the lowest of the following three:

1. Actual HRA received from employer.
2. 50% of (Basic Salary + DA) for Metro cities, or 40% for Non-Metro.
3. Actual Rent paid minus 10% of (Basic Salary + DA).

Metro Cities

For HRA calculation, only Delhi, Mumbai, Kolkata, and Chennai are considered Metro cities. All others (including Bangalore, Hyderabad, Pune) are Non-Metro (40%).