HRA Exemption Calculator

Written by Great Medico

Updated September 25, 2026 •2 min read

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When a financial question has several moving parts, a small calculator is most useful when it stays narrow. HRA Exemption Calculator does exactly that: it uses the values shown here to answer one specific question. On this page, it calculates the lowest-of-three HRA exemption amount from salary, HRA, rent, and metro selection.

What this calculator does

HRA Exemption Calculator calculates the lowest-of-three HRA exemption amount from salary, HRA, rent, and metro selection. Its visible inputs are Basic pay, Dearness allowance received, HRA received, Actual rent paid, Do you live in a metro city?. The article follows those fields and the calculation that is actually available on this page; it does not silently add live market feeds, tax tables, legal eligibility tests, or other variables that are not present in the tool.

How to use it

Enter Basic pay, Dearness allowance received, HRA received, Actual rent paid, Do you live in a metro city?. Use the units and percentage scale shown beside each field, and keep values on the same time basis when the formula compares income, rates, prices, balances, or work hours.

How the calculation works

Exempt HRA is the lowest of: actual HRA received; actual rent paid − 10% of salary; and 50% of salary for the calculator’s metro selection or 40% for non-metro. Salary here is basic pay + eligible DA.

Example

Using the page’s demonstration values (Basic pay = 500,000; Dearness allowance received = 0; HRA received = 200,000; Actual rent paid = 180,000) and leaving the remaining defaults unchanged, the calculator returns ₹130,000 for exempt hra. Replace the sample inputs with values from the same period and definition before interpreting your own result.

How to interpret the result

Use the number as a mathematical projection from the entered contribution, rate, term, or tax assumption. Scheme eligibility, statutory caps, credited rates, tax treatment, lock-ins, withdrawal rules, and lender practices are separate questions that can change over time.

Limitations and notes

The standard HRA exemption test is the lowest of actual HRA, rent minus 10% of salary, and 50%/40% of salary depending on metro treatment. Tax regime eligibility and salary definitions still need to be checked for the relevant year. Government schemes and tax rules can change by financial year or notification. Interest rates may be reset, contribution limits can apply, and tax/withdrawal treatment may depend on eligibility. Verify the current official scheme or tax rule before acting.