HRA Exemption Calculator
The House Rent Allowance exemption is capped by three separate limits, and the smallest one applies. This calculator works out the exempt amount, the taxable balance and the annual figures from your salary, HRA and rent.
Exempt HRA (monthly)
$10,000.00
- Taxable HRA (monthly)
- $10,000.00
- Exempt HRA (annual)
- $120,000.00
- Taxable HRA (annual)
- $120,000.00
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
Exempt = min(HRA, rent - 10% of salary, 50%/40% of salary)
- HRA
- House rent allowance received
- Salary
- Basic salary plus DA
- Rent
- Rent actually paid
How to check the result by hand
- 1
Work out ten percent of salary
Add basic pay and dearness allowance, then take ten percent to find the rent hurdle.
- 2
Find the rent excess
Subtract the ten percent figure from the rent paid. The result is the second limit.
- 3
Apply the city percentage
Take fifty percent of salary in a metro city, or forty percent elsewhere, to get the third limit.
- 4
Take the lowest of the three
The exemption is the smallest of the HRA received, the rent excess and the percentage limit.
- 5
Annualise and find the taxable part
Multiply the monthly exemption by twelve, and subtract it from the HRA received to get the taxable amount.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate HRA Exemption page.