HRA Exemption Calculator India — Rent Allowance (2026) — Free
Calculate your House Rent Allowance exemption in India from basic salary, HRA received, rent paid, and city, and find your taxable HRA in seconds.
HRA Exemption Calculator FY 2025-26
Salary & Rent Details
Basic salary + Dearness Allowance (DA) as per salary slip
Total HRA component received from employer in a year
Monthly rent paid for accommodation. Must have rent receipts.
Calculated automatically from monthly rent
HRA Calculation ResultsExemption Available
Exempt HRA
₹1,20,000
Taxable HRA
₹1,20,000
Total HRA Received
₹2,40,000
Annual Rent Paid
₹1,80,000
HRA Exemption Conditions (Least of the 3)
Actual HRA Received
HRA component mentioned in your salary slip
₹2,40,000
₹2,40,000
Rent Paid - 10% of Basic
Annual rent minus 10% of basic salary
₹1,80,000 - 10% of ₹6,00,000
₹1,20,000
50% of Basic Salary
50% of basic salary for metro cities
50% of ₹6,00,000
₹3,00,000
Exempt HRA (Least of above 3)
This amount is deducted from your taxable income
₹1,20,000
Estimated Tax Saved at Different Slabs (Including 4% Health & Education Cess)
@ 5% Slab
₹6,240
Base: ₹6,000 + 4% cess
@ 20% Slab
₹24,960
Base: ₹24,000 + 4% cess
@ 30% Slab
₹37,440
Base: ₹36,000 + 4% cess
About this calculator
Comprehensive Guide to HRA Tax Exemption in India
How to Use the HRA Exemption Calculator India
Follow these simple steps to calculate your figures accurately:
- Basic Salary + DA Received (₹ per month or year): Core salary component used for HRA exemption calculation.
- Actual HRA Received (₹ per month or year): Housing Rent Allowance paid by employer as per salary slip.
- Actual Rent Paid (₹ per month or year): Total rent paid to landlord during the financial year.
- Accommodation City Type: Metro City (Mumbai, Delhi, Kolkata, Chennai - 50% basic limit) or Non-Metro City (40% basic limit).
- View Instant Results: Inspect the detailed summary card, breakdown chart, and year-wise schedule generated instantly.
The HRA Exemption Formulas
Under Section 10(13A), HRA tax exemption is calculated as the minimum of the following three statutory limits:
Statutory Limit 1 = Actual HRA Allowance Received from Employer
Statutory Limit 2 = 50% of Basic Salary + DA (for Metro Cities: Mumbai, Delhi, Kolkata, Chennai)
OR 40% of Basic Salary + DA (for Non-Metro Cities)
Statutory Limit 3 = Actual Annual Rent Paid - (10% of Basic Salary + DA)
Exempt HRA Amount = Minimum(Statutory Limit 1, Statutory Limit 2, Statutory Limit 3)
Taxable HRA Amount = Actual HRA Received - Exempt HRA Amount
Practical HRA Calculation Examples
Example 1: Salaried Employee in Metro City (Mumbai)
An employee in Mumbai receives the following annual salary components:
- Basic Salary: ₹6,00,000 / year (₹50,000 / month)
- HRA Received: ₹2,40,000 / year (₹20,000 / month)
- Actual Rent Paid: ₹2,40,000 / year (₹20,000 / month in Mumbai)
Calculation:
Limit 1 (Actual HRA): ₹2,40,000
Limit 2 (50% of Basic): 50% of ₹6,00,000 = ₹3,00,000
Limit 3 (Rent - 10% Basic): ₹2,40,000 - (10% of ₹6,00,000) = ₹2,40,000 - ₹60,000 = ₹1,80,000
Exempt HRA: Minimum of (₹2,40,000, ₹3,00,000, ₹1,80,000) = ₹1,80,000
Taxable HRA: ₹2,40,000 - ₹1,80,000 = ₹60,000
Example 2: Salaried Employee in Non-Metro City (Bengaluru)
An employee in Bengaluru (classified as non-metro under HRA rules) receives:
- Basic Salary: ₹8,00,000 / year
- HRA Received: ₹3,20,000 / year
- Actual Rent Paid: ₹2,16,000 / year (₹18,000 / month)
Calculation:
Limit 1 (Actual HRA): ₹3,20,000
Limit 2 (40% of Basic): 40% of ₹8,00,000 = ₹3,20,000
Limit 3 (Rent - 10% Basic): ₹2,16,000 - ₹80,000 = ₹1,36,000
Exempt HRA: Minimum of (₹3,20,000, ₹3,20,000, ₹1,36,000) = ₹1,36,000
Taxable HRA: ₹3,20,000 - ₹1,36,000 = ₹1,84,000
Statutory Rules & Proof Documentation for HRA Claims
- Landlord PAN Requirement: If annual rent paid exceeds ₹1,00,000 (₹8,333/month), declaring the landlord's Permanent Account Number (PAN) on Form 12BB is mandatory.
- TDS on High Monthly Rent (Section 194-IB): If monthly rent exceeds ₹50,000, the tenant must deduct 10% TDS from the rent and deposit it using Form 26QC.
- Paying Rent to Family Members: Rent paid to parents is eligible for HRA exemption provided a formal rent agreement exists, rent receipts are issued, and parents declare the rental income in their ITR filings.
- Impact of New Tax Regime (Section 115BAC): HRA exemption under Section 10(13A) is only available under the Old Tax Regime. If opting for the Default New Tax Regime, full HRA received is added to taxable salary.
Practical Example: HRA Exemption Calculation u/s 10(13A)
Suppose Kavita lives in a rented apartment in New Delhi (Metro) in FY 2025-26 under the Old Tax Regime:
- Annual Basic Salary + DA: ₹6,00,000 (₹50,000/month)
- Actual HRA Received from Employer: ₹2,40,000 (₹20,000/month)
- Actual Rent Paid to Landlord: ₹2,16,000 (₹18,000/month)
Exemption is Minimum of the Following 3 Rules:
- Actual HRA Received: ₹2,40,000
- 50% of Basic Salary (Metro): 50% of ₹6,00,000 = ₹3,00,000
- Rent Paid minus 10% of Basic: ₹2,16,000 - (10% of ₹6,00,000) = ₹2,16,000 - ₹60,000 = ₹1,56,000
- Tax Exempt HRA Amount: ₹1,56,000
- Taxable HRA Amount: ₹2,40,000 - ₹1,56,000 = ₹84,000 (Added to taxable salary income).
Common Hra Calculator Mistakes to Avoid
- Claiming HRA Exemption Under Default New Tax Regime (Section 115BAC): Trying to claim HRA tax exemption while filing income tax under the Default New Tax Regime, where HRA exemption is legally disallowed.
- Failing to Submit Landlord's PAN for Rent Paid Above ₹1 Lakh Annually: Omitting landlord PAN details on Form 12BB when annual house rent exceeds ₹1,00,000, triggering HRA claim rejection by employers.
- Claiming HRA Exemption Without Valid Rent Receipts or Bank Transfer Proof: Paying rent in undocumented cash without formal rent agreements and signed receipts, attracting IT Department audit disallowances.
- Confusing Metro City Classification (50% of Basic) with Non-Metro (40% of Basic): Applying 50% Basic salary caps to non-metro cities (e.g. Pune, Hyderabad, Ahmedabad) instead of restricting to 4 metro cities (Mumbai, Delhi, Kolkata, Chennai).
- Failing to Deduct 10% TDS on High Monthly Rent Payments (>₹50,000/month): Paying monthly rent above ₹50,000 without deducting 10% TDS under Section 194-IB and depositing it via Form 26QC.
- Claiming HRA While Living in Self-Owned Property: Claiming HRA tax exemption while residing in a residential property owned by self or spouse in the same city.
Frequently Asked Questions
How is the HRA exemption calculated under Indian income tax rules?
The HRA exemption is the least of three amounts: (1) the actual HRA received from your employer, (2) 50% of basic salary (for metro cities) or 40% of basic salary (for non-metro cities), and (3) actual rent paid minus 10% of basic salary. This calculator computes all three and identifies which is the lowest, giving you the maximum permissible exemption.
Which cities are considered metro cities for HRA calculation?
For HRA purposes, the four metro cities are Delhi, Mumbai, Chennai, and Kolkata. If you live and pay rent in any of these cities, 50% of your basic salary is used in the HRA exemption formula. Employees in all other cities and towns use 40% of basic salary.
Can I claim HRA exemption if I pay rent to a family member?
You can claim HRA exemption on rent paid to a family member only if the arrangement is genuine — meaning rent is actually paid and the property is owned by that family member in their own name. The rental income must be declared by the recipient. Paying rent to a spouse living in the same household is generally not accepted by tax authorities as a legitimate claim.
What documents do I need to claim HRA exemption?
To claim HRA, you should have rent receipts (especially for annual rent above the threshold requiring the landlord's PAN) and the rent agreement. If your annual rent exceeds a certain threshold, you must submit your landlord's PAN to your employer. Keep these documents handy in case your employer or the income tax department requests them.
Can I claim both HRA exemption and the home loan deduction?
Yes. If you own a home in one city and live on rent in another city (typically due to employment), you can simultaneously claim HRA exemption on the rent paid and Section 24(b) deduction on home loan interest (plus Section 80C for principal repayment). Both claims must be genuine and supportable with documentation.
Can I claim both HRA and Home Loan interest deduction?
Yes, you can claim both HRA exemption and the Section 24(b) deduction for home loan interest simultaneously. This is allowed if you are paying rent in one city while your owned property is in another city, or if you can prove a valid reason for not occupying your owned house.
Is HRA exemption available in the New Tax Regime?
No. The HRA exemption under Section 10(13A) is only available if you opt for the Old Tax Regime. If you choose the New Tax Regime, your entire HRA component becomes fully taxable.
Do I need to submit rent receipts or a rent agreement?
Yes, employers usually require you to submit rent receipts. If your annual rent exceeds ₹1,00,000 (approx ₹8,333 per month), it is mandatory to submit your landlord's PAN to your employer to claim the exemption. A registered rent agreement is highly recommended as valid proof.
Can I claim HRA exemption if I pay rent to my parents?
Yes, you can claim HRA exemption by paying rent to your parents. However, the property must be officially owned by them, they must provide valid rent receipts, and they must declare the rental income in their own Income Tax Returns. You cannot pay rent to your spouse to claim HRA.
Is HRA exemption available if I own a house in the same city?
Generally, if you own a house in the same city, you cannot claim HRA exemption. The only exception is if you can definitively prove that your owned house is too far from your workplace (making commuting impossible) or is occupied by your parents while you genuinely live in a rented accommodation closer to work.
What if my salary doesn't have an HRA component?
If you live in a rented house but do not receive HRA as part of your salary, you can claim a deduction under Section 80GG of the Income Tax Act. The deduction is limited to the least of: ₹5,000 per month, 25% of your total income, or actual rent paid minus 10% of total income.
Conclusion
Using the Hra Calculator provides accurate, data-backed estimates tailored to Indian financial and tax regulations, helping you optimize your financial planning.
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Tax & Regional Disclaimer
Tax laws, social security contribution tiers, and statutory withholding rules vary by jurisdiction and change periodically. Calculated figures are estimates based on standard statutory rates. Please verify results with a licensed tax advisor or official regional tax authority before filing taxes.
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