How HRA Works
Uses the statutory HRA exemption formula. The calculator uses the visible inputs, applies the formula below, and rounds rupee outputs to whole numbers so the result is easy to read on mobile.
Formula
HRA result = validated inputs → formula calculation → rounded Indian result
Inputs used:
- Annual basic salary
- Annual HRA received
- Annual rent paid
- City typeExample Calculation
India-Specific Assumptions
- PF and professional tax use the current app constants and state defaults.
- Salary calculators are estimates; employer payroll structures can differ.
- All rupee results are rounded to whole rupees for readability.
- Inputs are treated as estimates; actual bank, employer, university, insurer, or tax-office calculations may differ.
- The calculator uses Indian formats, slab concepts, and common FY 2025-26 assumptions where relevant.
Common questions
The exemption is the lowest of actual HRA received, rent paid minus 10% of basic salary, and 50% of basic for metro or 40% for non-metro cities.
Generally HRA is for rent paid. If you own and live in the same house, HRA exemption usually does not apply.
Yes. Metro cities use 50% of basic salary in one exemption check, while non-metro cities use 40%.
Yes, employers or tax records may require rent receipts, landlord PAN in some cases, and proof of actual rent payment.
Yes. Enter annual basic salary, annual HRA received, and annual rent paid for a clean estimate.
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Disclaimer: This calculator is for general informational and educational purposes only. It is not financial, tax, legal, academic, insurance, or professional advice. Verify important decisions with the relevant official source, employer, bank, university, insurer, or adviser.
Last updated: April 2026