HRA Exemption Calculator
Work out hra exemption instantly with clear inputs, formula shown and shareable results.
About HRA Exemption Calculator
The house rent allowance exemption is the least of three amounts: HRA received, rent paid less 10% of basic salary, and 50% of basic in a metro or 40% elsewhere. Identifying the binding limit shows what would actually increase the exemption.
Formula
HRA exemption
Exempt = min(HRA received, rent - 10% of basic, 50%/40% of basic)
Worked example
With the default values below, HRA Exemption Calculator returns HRA Exemption of $288,000.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Annual Basic Salaryminimum 0
- 720,000
- HRA Receivedminimum 0
- 300,000
- Annual Rent Paidminimum 0
- 360,000
- City Typeone of Metro city, Non-metro city
- Metro city
Results
- HRA Exemption
- $288,000.00
- Taxable Part Of HRA
- $12,000.00
- Which Limit Binds
- Rent less 10% of basic is the binding limit
- Rent That Must Be Exceeded (10% Of Basic)
- $72,000.00
Step by step
- 1Values used
- 2HRA exemption
- 3HRA Exemption= 288,000.00
- 4Taxable Part Of HRA= 12,000.00
- 5Which Limit Binds= Rent less 10% of basic is the binding limit
- 6Rent That Must Be Exceeded (10% Of Basic)= 72,000.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Frequently Asked Questions
What if rent is below 10% of basic?
The exemption is nil, because the second limit becomes zero or negative.
Is a landlord's tax reference needed?
Above a threshold rent, most tax authorities require the landlord's tax identification number in the claim.