HRA
HRA Calculator
Estimate HRA exemption as the minimum of actual HRA, rent minus 10% of basic, and 50% or 40% of basic depending on city type.
The three-leg test
Exempt HRA is the smallest of the three amounts. Taxable HRA is actual HRA minus that exemption, and cannot go below zero.
HRA exemption
Exemption = min(HRA, Rent − 10% × Basic, City% × Basic)
City% is 50% for metro cities and 40% otherwise in this model. Taxable HRA is actual HRA minus the exemption.
Frequently asked questions
Are these tax figures current law?
No. Slabs, rebates and deductions are illustrative assumptions with a last-updated date. They are not verified as current. Confirm on the Income Tax Department website or with a professional before filing.
Should the figures be monthly or annual?
Use the same period for basic, HRA and rent. Mixing monthly rent with annual basic will misstate the exemption.
What counts as a metro city?
This model lets you choose metro (50%) or non-metro (40%). Confirm the cities treated as metro for the year you are filing.
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SmartCalculators provides educational calculators and estimates. Results are for informational purposes only and should not be considered financial, tax, investment, legal or professional advice.