HRA Calculator

Calculate tax-exempt HRA under Indian income tax rules for metro and non-metro cities.

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By MerQPrime Editorial TeamUpdated 2026-06-20Reviewed 2026-06-20Editorial policy

Overview

About the HRA Calculator

Find how much of your House Rent Allowance is tax-exempt under Indian law. Enter basic salary, actual HRA received, rent paid and whether you live in a metro city — the calculator applies the three-part rule and shows exempt vs taxable HRA instantly.

Benefits

How it works

1Enter monthly basic salary (excluding other allowances).
2Enter actual HRA received from your employer per month.
3Enter rent paid per month and select metro or non-metro city.
4View exempt HRA, taxable HRA and the limiting factor applied.
5Use results when filing ITR or negotiating salary structure.

Applications

Use cases

Estimate tax savings when relocating to a rented home.
Validate employer payroll HRA exemption calculations.
Compare metro vs non-metro exemption limits.
Plan rent receipts and landlord PAN requirements.

Support

Frequently asked questions

How is HRA exemption calculated?

Exempt HRA is the minimum of: (1) actual HRA received, (2) rent paid minus 10% of basic salary, (3) 50% of basic for metro cities or 40% for non-metro cities.

Which cities are metro for HRA?

Delhi, Mumbai, Kolkata and Chennai are treated as metro cities for the 50% rule. Other cities use the 40% of basic limit.

Can I claim HRA if I live with parents?

You can claim HRA if you pay rent to parents and have valid rent receipts and their PAN if annual rent exceeds ₹1 lakh. The arrangement must be genuine.