HRA Calculator

The tool takes the smallest of: (1) actual HRA received, (2) rent paid minus 10% of basic pay, and (3) 50% of basic (metro city) or 40% of basic (non-metro city) — whichever of the three is lowest becomes your exempt amount.

For HRA purposes, Delhi, Mumbai, Kolkata, and Chennai are typically treated as metro cities (the higher 50% threshold); other cities use the 40% threshold — check your employer's payroll policy for how they classify your location.

This version is framed around planning your salary structure or preparing your rent declaration during the year — for filing your actual tax return, see the HRA Exemption Calculator in Tax Calculators.

The remainder (HRA received minus the exempt amount) is added to your taxable salary income and taxed at your applicable slab rate.

Yes, employers typically require rent receipts (and a landlord PAN if annual rent exceeds a threshold) before applying the HRA exemption in your payroll TDS calculation.