HRA Calculator
Calculate HRA exemption from basic salary, rent, HRA received and city type.
How the HRA Calculator works
Calculate HRA exemption from basic salary, rent, HRA received and city type. Below is the exact mathematical or algorithmic model used by this tax utility, along with its key operating assumptions.
HRA exemption = minimum of HRA received, rent paid minus 10% of basic salary, and 50% of basic in metro cities or 40% in non-metro cities.Step-by-step workflow
- Set your starting capital, rate, or tenure in the HRA Calculator controls (or pick a quick INR benchmark preset).
- The calculation engine applies HRA exemption = minimum of HRA received, rent paid minus 10% of basic salary, and 50% of basic in metro cities or 40% in non-metro cities. on every change and separates principal from compounded gains or interest.
- Inspect the visual chart breakdown and adjust sliders to stress-test lower returns, higher inflation, or extra prepayments.
Worked example & key advantages
For ₹6 lakh annual basic, ₹3 lakh HRA and ₹25,000 monthly rent in a metro city, the exemption is the lowest of the three HRA limits.
Why use this HRA tool
- Transparent compounding and amortization math (HRA) with Indian Lakh and Crore formatting.
- Side-by-side visual charts showing how tenure, rate resets, or step-ups change lifetime wealth.
- 100% browser-local execution—your loan, investment, and tax figures are never uploaded or stored on a server.
Important Assumptions & Scope
- This is a simplified old-regime HRA estimate.
- Basic salary means basic plus applicable dearness allowance if relevant.
- Rent proof, landlord PAN and employer policy may be required.
- Eligibility depends on actually paying rent for the period claimed.
Frequently Asked Questions — HRA
Clear answers to common questions about methodology, edge cases, and privacy.
Is HRA available in the new tax regime?
Common HRA exemption is generally an old-regime benefit, so compare regimes before relying on it.
Which cities count as metro for HRA?
From Tax Year 2026–27, the Income-tax Rules, 2026 allow 50% of salary in eight cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All other cities use 40%. Up to FY 2025–26 only the first four qualified.
Can I claim HRA without rent receipts?
Employers usually require proof. Use the rent receipt generator and keep payment records where required.