Free HRA Calculator — Calculate Your HRA Exemption for FY 2025-26

HRA (House Rent Allowance) is one of the most valuable tax exemptions for salaried employees in India — but the calculation trips people up every year.

The exemption is the minimum of three figures:

1. Actual HRA received from your employer
2. 50% of basic salary (metro) or 40% (non-metro)
3. Rent paid minus 10% of basic salary

The Tools.Town HRA Calculator does all three automatically.

Enter your monthly basic salary, actual HRA received, and rent paid. Toggle metro/non-metro. You instantly see:

• All three method values
• The exempt amount (the minimum)
• Your taxable HRA
• The rule that limited your exemption

No spreadsheet, no guessing. Your tax exemption in 10 seconds.

Frequently Asked Questions

What is HRA exemption? House Rent Allowance exemption under Section 10(13A) lets salaried employees reduce their taxable income by the HRA amount that qualifies under the three-method test.

What are the three HRA methods?

1. Actual HRA received from employer, 2) 50% of basic salary (metro cities) or 40% (non-metro), 3) Rent paid minus 10% of basic salary. The lowest of these three is the exempt amount.

Does this work for FY 2025-26? Yes — the formula is unchanged for FY 2025-26. Metro cities (Delhi, Mumbai, Kolkata, Chennai) use 50%; all other cities use 40%.

What if I live in a metro city? Toggle the ‘Metro City’ option and the calculator uses 50% of basic instead of 40%.

Try it now — Open Hra Calculator — no signup required.