HRA Calculator
Calculate your HRA Exemption based on Old & New Tax Regime rules
Under the Old Regime, the lowest of the following 3 amounts is exempt:
1. Actual HRA Received
2. Rent Paid minus 10% of Salary
3. 50% (Metro) or 40% (Non-Metro) of Salary
• Tax-Free Exemption: ₹ 0
• Taxable Amount: ₹ 0
Note: HRA Exemption under Section 10(13A) is available only under the Old Tax Regime. The entire HRA amount is taxable under the New Tax Regime.
HRA Exemption Calculator & Formula: Old vs New Tax Regime Rules
House rent Allowance (HRA) is a crucial salary component provided by employers to help employees meet housing expenses. How much of this allowance remains tax-free depends directly on the tax regime you choose during tax filing?
Old vs New Tax Regime: The HRA Exemption Rule
Old Tax Regime: You can claim HRA exemption under Section 10(13A) of the Income Tax Act. The exempt amount stays tax-free, while any balance is added to your taxable income.
New Tax Regime: Designed with revised tax slabs and minimal deductions, HRA exemption is not available under the New Tax Regime. The HRA component is full taxable.
The HRA Exemption Formula (Section 10(13A)
Under the Old Tax regime, the Income Tax Department evaluates your tax-free HRA as the lowest of the following three calculations:
Exempt HRA = mini (Actual HRA Received, Rent Paid – 0.10 × Salary, k × Salary)
Salary = Basic Salary + Dearness Allowance (DA) forming part of retirement benefits.
K = 0.50 (50%) for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 0.40 (40%) for non-Metro cities.
Taxable HRA = Actual HRA received – Exempt HRA
Practical Calculation Example
Assume your basic salary is 50,000/month (6,00,000 annual), HRA received is 20,000/month (2,40,000 annual), total rent paid is 18000/month (2,16,000 annual), and you reside in a non-metro city:
Actual HRA Received: 2,40,000
Rent Paid – 10% of Salary: 2,16,000 – (10% of 6,00,000) = 1,56,000
40% of Basic Salary: 40% of 6,00,000 = 2,40,00
Exempt HRA (Lowest of the three): 1,56,000
Taxable HRA: 240000 – 156000 = 84000
Why Use an HRA Calculator?
Computing multi-variable formulas manually creates margin for error. An automated HRA calculator provides clear benefits:
Regime Compliance: Compare tax savings across both regimes instantly.
Flexible Tracking: Switch between monthly and yearly views for precise budgeting.
ITR Accuracy: Ensure exact deductions when submitting proofs to HR or filling your HR.