HRA Exemption Calculator

Living in a rented house? You can save thousands in taxes. The Pixedra HRA Calculator helps you determine exactly how much of your House Rent Allowance (HRA) is tax-free.

How HRA Exemption is Calculated (The 3 Rules)

The Income Tax Department calculates exemption based on the lowest of the following three amounts:

Actual HRA Received from your employer.
Rent Paid minus 10% of Basic Salary.
50% of Basic Salary (if living in a Metro city) OR 40% of Basic Salary (for Non-Metro cities).

The remaining amount (if any) is added to your taxable income.

Metro vs. Non-Metro Cities for HRA

The HRA calculation changes based on your location.

Metro Cities (50% Rule)

Only Delhi, Mumbai, Kolkata, and Chennai.

Non-Metro Cities (40% Rule)

Bangalore, Hyderabad, Pune, Gurgaon, Noida, and all other cities fall under this category.

Note: Even though Bangalore and Hyderabad are IT hubs, they are considered "Non-Metro" for HRA purposes (40% rule).

Frequently Asked Questions (FAQs)

Next Steps

Want to check your total monthly earnings? Use our Salary Calculator.

Planning to buy a house instead of renting? Check your EMI with the Home Loan EMI Calculator.