HRA Exemption Calculator
Find out exactly how much of your House Rent Allowance is tax-free under Section 10(13A) of the Income Tax Act. Enter five figures and get your exempt and taxable HRA instantly — with the full least-of-three breakdown.
How HRA exemption is calculated
Under Section 10(13A) of the Income Tax Act read with Rule 2A, the exempt portion of your House Rent Allowance is the least of the following three amounts:
| # | Amount |
|---|---|
| 1 | Actual HRA received from your employer |
| 2 | Rent paid minus 10% of salary |
| 3 | 50% of salary (metro city) or 40% of salary (non-metro city) |
Here “salary” means Basic Pay + Dearness Allowance (where DA forms part of retirement benefits) + commission as a fixed percentage of turnover, if any. Whatever amount is smallest among the three is your tax-free HRA; the rest is added to your taxable salary.
Which cities count as “metro”?
For HRA, only four cities qualify for the 50% rate: Delhi, Mumbai, Kolkata and Chennai. All other cities — including Bengaluru, Hyderabad, Pune, Ahmedabad, Gurugram and Noida — are treated as non-metro (40%), a point many calculators get wrong.
Worked example
Suppose your monthly Basic is ₹40,000, you receive ₹20,000 HRA, pay ₹18,000 rent and live in Mumbai (metro). Annually: salary ₹4,80,000, HRA ₹2,40,000, rent ₹2,16,000.
| Rule | Amount (per year) |
|---|---|
| Actual HRA received | ₹2,40,000 |
| Rent paid − 10% of salary (2,16,000 − 48,000) | ₹1,68,000 |
| 50% of salary (metro) | ₹2,40,000 |
The least is ₹1,68,000, so that much HRA is exempt and the remaining ₹72,000 is taxable. Try your own numbers in the calculator above.
How to claim HRA exemption
- Choose the Old Tax Regime while filing your return or submitting your investment declaration to your employer.
- Collect rent receipts for the year and a copy of your rent agreement.
- If annual rent exceeds ₹1,00,000, obtain your landlord’s PAN (mandatory).
- Declare the HRA exemption to your employer so it reflects in Form 16, or claim it directly in your ITR.
- Keep proofs ready — HRA is a commonly scrutinised deduction.
Good to know
Living with parents?
You can pay rent to your parents and claim HRA, provided the arrangement is genuine: actually transfer the rent, keep receipts, and your parents must declare that rental income in their return.
HRA + Home Loan
You can claim both HRA and a home-loan interest deduction in the same year if you genuinely rent one home while owning (or buying) another — for example, working in a different city.
No HRA in your salary?
If your CTC has no HRA component (or you are self-employed), you cannot use Section 10(13A) — but you may claim rent under Section 80GG instead, subject to limits.
Related tools
See our Tax Regime Calculator, TDS Return Tool and GSTR-1 Tool.
Frequently asked questions
Can I claim HRA exemption under the new tax regime?
No. HRA exemption under Section 10(13A) is available only under the Old Tax Regime. If you opt for the New Regime (the default from FY 2023-24 onwards), your entire HRA is taxable.
What is the HRA exemption formula?
Exempt HRA is the least of: (1) actual HRA received, (2) rent paid minus 10% of salary, and (3) 50% of salary for metro cities or 40% for non-metro cities. Salary means Basic + DA (forming part of retirement benefits) + commission as a fixed % of turnover.
Which cities are metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% rate. Every other city, including Bengaluru, Hyderabad and Pune, is non-metro and uses the 40% rate.
Is a landlord’s PAN required?
Yes, if your total rent paid during the year exceeds ₹1,00,000, you must report your landlord’s PAN to claim the exemption.
Can I claim HRA if I pay rent to my parents?
Yes, provided it is a genuine arrangement: you actually pay the rent, retain receipts, and your parents include the rent as income in their tax return.
What if I do not receive HRA from my employer?
You cannot claim Section 10(13A). However, salaried individuals with no HRA and self-employed persons may claim a rent deduction under Section 80GG, subject to conditions and a cap.
Does this calculator work for FY 2025-26 and AY 2026-27?
Yes. The HRA exemption rules under Section 10(13A) are unchanged for FY 2025-26 (AY 2026-27), so the calculation here applies for the current year.
Disclaimer: This calculator is for general information and educational purposes only and does not constitute tax advice. HRA exemption depends on your individual facts and supporting documents. Verify your figures or consult a qualified tax professional before filing. © ClearTax Advisors.