How is HRA exemption calculated?

HRA exemption is the minimum of: actual HRA received, rent paid less 10% of basic salary, or 50% (metro) / 40% (non-metro) of basic salary.

Does city type affect exemption?

Yes — metro cities use 50% of basic salary as one of the exemption tests; non-metros use 40%.

Provide monthly values; the calculator annualizes them and simulates growth over years (optional).

HRA rules

HRA exemption uses the minimum of: actual HRA received, rent paid − 10% of basic, or 50%/40% of basic depending on city.

Estimate note

This is an estimator and rounds values; consult HR/tax advisor for exact calculations and applicability.

FAQ

What if rent ≤ 10% basic?: Then rent − 10% basic becomes zero or negative and does not increase exemption; exemption will be lower.

Annual HRA Exempt

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Exempt portion of HRA per year; shows estimate and tax saving for chosen marginal rate.

Annual HRA received

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Tax saved (approx)

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