An HRA calculator measures the tax-free portion of the rent allowance you receive by comparing pay, rent and city against three statutory limits. Compute the lowest-of-three HRA exemption under Section 10(13A) of the Income-tax Act. Metro vs non-metro split. Old tax regime only, new regime does not allow HRA exemption.
HRA calculator in brief
HRA calculator results from WappBlaster depend on a single rule in Section 10(13A) of the Income-tax Act: the exempt amount equals the smallest of the allowance actually received, a basic-linked limit, and rent paid above one tenth of basic. That basic-linked limit is 50% for tenants living in Mumbai, Delhi, Kolkata or Chennai and 40% everywhere else, so a Bengaluru or Hyderabad renter falls in the lower band despite the city's size. Taking a ₹50000 basic with ₹25000 of HRA and ₹20000 rent outside a metro, the rent leg binds and ₹15000 per month escapes tax. Salaried people filing under the new regime of Section 115BAC lose this exemption completely, which makes the free WappBlaster tax tool most useful while deciding between regimes. Annual rent above ₹100000 also requires receipts and the landlord's PAN before an employer will reflect the claim in TDS.
An HRA calculator is a tool that works out how much of the house rent allowance in your salary is tax exempt under Section 10(13A), and how much stays taxable.
WappBlaster built this HRA calculator around the lowest-of-three test, showing each of the three values so you can see which one sets your monthly exemption.
Salaried employees see actual HRA, the basic-linked limit and rent minus a tenth of basic side by side.
Someone renting outside the four metro cities gets the correct lower percentage without looking it up.
The part of HRA that will still be taxed appears straight away, which helps when planning TDS declarations.
Knowing the exemption value makes it easier to judge whether the old regime is still worth keeping.
HRA exemption under Section 10(13A) of the Income-tax Act is among the largest tax breaks for salaried employees in India, but only under the old tax regime. It is calculated as the lowest of three values: actual HRA received, 50% of basic for metros (40% for non-metro), and actual rent paid minus 10% of basic.
Bengaluru employee (non-metro for HRA purposes), monthly basic Rs. 50000, HRA Rs. 25000, rent paid Rs. 20000. (a) Actual HRA = 25,000. (b) 40% basic = 20,000. (c) Rent − 10% basic = 20,000 − 5,000 = 15,000. Exemption = min(25,000, 20,000, 15,000) = Rs. 15000 / month. Taxable HRA = 25,000 − 15,000 = Rs. 10000 / month.
If you are planning salary structure more widely, see how Indian SMBs handle expense claims, payroll messaging software for small Indian firms and workforce data from Indian SMBs in 2026.
| Feature | What it means | Where to find it |
|---|---|---|
| Monthly basic | Basic salary per month, which sets two of the three limits. | The basic line on your payslip or the salary annexure of your offer letter. |
| HRA received | House rent allowance your employer pays each month. | The HRA line on the same payslip. |
| Rent paid | What you actually pay the landlord per month. | Your rent agreement or the rent receipts you give your employer. |
| City type | Metro uses 50% of basic, any other city 40%. | The city where you live and pay rent, not where the employer is registered. |
Only Mumbai, Delhi, Kolkata and Chennai are 'metro' for HRA purposes under Income-tax rules. Bengaluru, Hyderabad, Pune, Ahmedabad and others use the 40% non-metro rate, regardless of city size.
Link to this answerYes for claim above Rs. 100000 per year. PAN of landlord is also required above this threshold. For salaried employees, rent receipts are submitted to the employer for TDS calculation; without proof, the employer may not allow the exemption in TDS but you can claim while filing returns.
Link to this answerPermitted, pay rent via bank transfer with a formal rental agreement, parents declare the rent as income. The arrangement must be genuine; tax authorities scrutinise close-relative rent claims.
Link to this answerYes, possible when you own a house in one city but rent in another for work reasons. Both can be claimed under their respective sections (HRA under 10(13A), home loan interest under Section 24 / 80EE / 80EEA).
Link to this answerNo. The new tax regime under Section 115BAC removes most exemptions including HRA. If you have significant HRA + 80C + home-loan interest deductions, old regime may still be better; the calculator helps compare.
Link to this answerThe exemption is calculated month-by-month based on the city of residence each month. Some months may use 50%, others 40%. Apportioning by month gives the most accurate annual exemption.
Link to this answerYes if it is your actual residence and rent receipts are obtainable. Working professionals in PG / co-living and student hostels can claim HRA on the rent paid.
Link to this answerIt is free. Type in monthly basic, HRA received, rent and city type, and the monthly exemption shows up straight away without an account.
Link to this answerTake the lowest of three figures. In the default case on this page, ₹50000 basic, ₹25000 HRA and ₹20000 rent in a non-metro city give limits of ₹25000, ₹20000 and ₹15000, so ₹15000 a month is exempt and ₹10000 stays taxable.
Link to this answerYes. The Section 10(13A) exemption exists only in the old regime, so the tool is meant for people filing under it. Under the new regime the whole allowance is taxed with no exemption.
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