HRA Exemption Calculator
Estimate House Rent Allowance exemption using actual HRA received, rent paid and city category.
Assumptions and limitations
- Exemption is the minimum of HRA received, city-based basic salary limit, and rent paid minus 10% of basic.
- This is an old-regime salary deduction for most salaried taxpayers.
- Rent must be supported by rent receipts and landlord details where applicable.
Illustrative projections only
SmartFintool provides mathematical calculations and educational information. It does not provide personalised investment advice. Mutual fund returns are not guaranteed and tax rules can change.
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₹6.00 Lakh
₹3.00 Lakh
₹2.40 Lakh
Estimated HRA Exemption
₹1.80 Lakh
Annual old-regime deduction
HRA Received
₹3.00 Lakh
City Limit
₹3.00 Lakh
Rent − 10% Basic
₹1.80 Lakh
| HRA received | ₹3,00,000 |
| 50% of basic salary | ₹3,00,000 |
| Rent paid minus 10% of basic | ₹1,80,000 |
How HRA exemption is calculated
HRA exemption is the minimum of three values: actual HRA received, 50% of basic salary for the city category, and rent paid minus 10% of basic salary. The result is an annual deduction; divide by 12 for a monthly estimate.
Frequently Asked Questions
Is HRA exemption available in the new tax regime?
Generally no. HRA exemption is an old-regime salary deduction for most taxpayers. The calculator still computes the exemption amount so you can compare old vs new regime planning.
Which salary is used for HRA calculation?
This calculator uses basic salary entered annually. If your HRA eligibility includes DA or commission, add the applicable qualifying salary as per your salary structure.