HRA Tax Exemption Calculator Overview

The 7th CPC HRA Tax Exemption Calculator helps central government employees in India compute their House Rent Allowance (HRA) tax exemption for 2025. It supports pay levels 1 to 18, incorporates the current Dearness Allowance (DA) rate of 55%, and adjusts HRA rates based on city classifications (X: 24%, Y: 16%, Z: 8%).

Learn more about our tools or try our 7th CPC Salary Calculator.

What is HRA Tax Exemption?

Under Section 10(13A) of the Income Tax Act, central government employees can claim a tax exemption on their HRA. The exemption is the minimum of:

  • Actual HRA received
  • Rent paid minus 10% of basic pay
  • 50% of basic pay (metro cities) or 40% (non-metro cities)

The 7th Pay Commission sets HRA rates at 24% (X-class cities), 16% (Y-class cities), or 8% (Z-class cities) of basic pay, adjusted with DA revisions.

✅ Recent Update: DA rate as of May 2025 is 55%, with revisions expected in July 2025.

Step 1: Select Pay Level
Select your pay level as per 7th CPC pay matrix.
Pay Range: Min: ₹0 - Max: ₹0
Step 2: Enter Basic Pay
Enter your current basic pay within the selected pay level range.
Step 3: Years of Service
Enter total years of service to calculate increments.
Step 4: City Classification
HRA: 24% (X), 16% (Y), 8% (Z) of basic pay. See city list.
Step 5: Current DA Rate
DA is updated twice a year (Jan & Jul). Current rate: 55% as of May 2025.
Step 6: Monthly Rent Paid
Enter the actual rent paid per month for your accommodation.

Calculation History

No calculation history available.

    Government Updates & Notifications

    📢 Recent Government Updates for 2025:

    • DA Revision: Current DA rate is 55%, with a potential update in July 2025 based on inflation.
    • HRA Adjustments: Proposals to revise HRA rates due to rising urban living costs are under review.
    • Tax Benefits: Section 10(13A) continues to provide HRA exemptions for eligible employees.

    💡 Did You Know?

    Many state governments adopt 7th CPC HRA rates, making this calculator useful for state employees too.

    Frequently Asked Questions

    What is HRA tax exemption under the 7th CPC?

    HRA tax exemption under Section 10(13A) allows central government employees to claim a deduction based on the minimum of: actual HRA received, rent paid minus 10% of basic pay, or 50% (metro) or 40% (non-metro) of basic pay.

    Who can use the 7th CPC HRA Tax Exemption Calculator?

    Central government employees, defense personnel, PSU employees, and some state government employees in India who receive HRA under the 7th CPC.

    How often is DA revised?

    DA is updated twice a year in January and July based on inflation.

    Which cities fall under X, Y, and Z classifications?

    X Class cities include metros like Delhi, Mumbai, and Chennai (24% HRA). Y Class includes medium-sized cities like Pune and Lucknow (16% HRA). Z Class covers smaller towns (8% HRA).