HRA Calculator

Calculate your House Rent Allowance (HRA) tax exemption amount under the Old Regime.

Residential Location

Monthly Allowance Breakdown

Exempt HRA (Tax-Free)₹10,000
Taxable HRA (Charged)₹10,000

Annual Equivalent Summary:

Annual Tax Exemptions:₹1,20,000
Annual Taxable HRA:₹1,20,000

How This is Calculated (Formula Transparency)

HRA exemption is the minimum of: 1) Actual HRA received, 2) Rent paid minus 10% of (Basic + DA), 3) 50% of (Basic + DA) for Metros or 40% for Non-Metros.

Concept: 1) Actual: ₹20k. 2) Rent - 10% Basic: ₹15k - (10% of ₹50k) = ₹10k. 3) 40% Basic: ₹20k. Exemption is the minimum: ₹10,000.

Worked Example Case Study

Scenario: Basic ₹50,000/month, HRA ₹20,000/month, Rent ₹15,000/month, living in non-metro.

Detailed Calculation: 1) Actual: ₹20k. 2) Rent - 10% Basic: ₹15k - (10% of ₹50k) = ₹10k. 3) 40% Basic: ₹20k. Exemption is the minimum: ₹10,000.

Result Outcome: Exempt HRA: ₹10,000/month. Taxable HRA: ₹10,000/month.

Assumptions & Rules

  • Metro cities are Delhi, Mumbai, Kolkata, Chennai.
  • Calculations are monthly or annual depending on input.
  • Calculations are compliant with laws and rates as of FY 2025-26 (AY 2026-27).

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