HRA Calculator
Estimate HRA tax exemption under Section 10(13A) for metro and non-metro cities.
Monthly basic salary.
Dearness allowance forming part of retirement benefits.
Monthly HRA component of salary.
Monthly rent for the accommodation.
Metro cities: Delhi, Mumbai, Kolkata, Chennai.
HRA exemption = minimum of (actual HRA received, rent paid minus 10% of salary for HRA, 50% or 40% of salary for HRA in metro/non-metro). Salary for HRA = basic + DA forming part of retirement benefits. Minimum wage figures are reference information only and are NOT used in this formula. Estimates for tax planning — confirm with a tax advisor.
Which cities are metro for HRA?
For HRA, metro typically means Delhi, Mumbai, Kolkata, and Chennai (50% limit). Other cities use the 40% non-metro limit. State notifications may vary — verify for your location.
Can I claim HRA if I live with parents?
You can if you pay rent to parents and they declare it as income. You need a valid rent agreement and rent receipts. The exemption formula still applies.
Is minimum wage used in HRA calculation?
No. This calculator uses only the statutory three-part test (actual HRA, rent minus 10% of salary, city percentage). Minimum wage is reference information only and is not part of the exemption formula here.
Old vs new tax regime for HRA?
HRA exemption is available under the Old Regime with proper documentation. The New Regime does not allow HRA deduction — your entire HRA is taxable there.
What if rent is less than 10% of salary?
Rent minus 10% of salary becomes zero or negative, so that limb of the test is zero. Exemption is then the lower of actual HRA and the city percentage limit.