HRA Exemption Calculator (India)

Your details

Your monthly basic salary as per your salary slip, excluding allowances. DA is added separately below if it forms part of retirement benefits.
INR
Include DA only if it forms part of your retirement benefit calculations (common in government jobs). Private-sector employees generally leave this as 0.
INR
The monthly HRA component shown on your salary slip.
INR
Total rent you pay your landlord each month. If annual rent exceeds Rs 1,00,000 you must submit the landlord PAN to your employer.
INR
Metro cities qualify for a 50% of Basic+DA ceiling. Eight cities have metro status from FY 2026-27 onward.
Enter the number of months you received HRA in this financial year. Use a smaller number if you joined mid-year or left employment part-way through.
months
Your income-tax slab under the old regime. Used only to estimate the annual tax saving; it does not affect the exemption amount itself.
HRA Exempt (monthly)Partial exemption
10,000INR

The monthly HRA amount excluded from taxable income

Taxable HRA (monthly)10,000INR
Annual HRA Exemption120,000INR
Estimated Tax Saving37,440INR
Condition 1 - Actual HRA20,000INR
Condition 2 - 50/40% of Basic+DA25,000INR
Condition 3 - Rent minus 10% Basic+DA10,000INR
Actual HRA20,000
50/40% Basic+DA25,000
Rent - 10% Basic+DA10,000
Exempt (minimum)10,000

Monthly HRA exemption: Rs 10,000 of Rs 20,000 received.

  • Condition 3 (rent minus 10% of Basic+DA) is binding, capping your monthly exemption at Rs 10,000.
  • Annual exemption is Rs 1.20 lakh, saving you roughly Rs 37,440 in tax (including 4% cess).
  • Rs 10,000 of your monthly HRA remains taxable as salary income.

Next stepTo claim full HRA exemption, your monthly rent should be at least Rs 25,000. Consider a higher-rent accommodation if it is financially sensible overall.

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