HRA Exemption Calculator
Work out how much of your House Rent Allowance is tax-exempt under Section 10(13A) — enter your salary, HRA and rent.
HRA exemption is available only under the old tax regime. The new tax regime does not allow this exemption. Figures are for FY 2025-26 (AY 2026-27).
How is HRA exemption calculated?
Under Section 10(13A) read with Rule 2A, the HRA exemption is the least of three amounts: the actual HRA received from your employer; the rent you actually paid minus 10% of your salary; and 50% of salary if you live in a metro city (Delhi, Mumbai, Kolkata or Chennai) or 40% of salary for any other city.
For this calculation, "salary" means your basic pay plus dearness allowance (DA), and any commission received as a fixed percentage of turnover. Allowances and perquisites are not included. Whichever of the three legs is smallest is the amount exempt from tax; the remaining HRA is taxable.
Note that the HRA exemption is available only under the old tax regime. If you opt for the new tax regime, no HRA exemption is allowed. The figures here apply to FY 2025-26 (AY 2026-27). You can read the relevant rules on the official Income Tax portal.
Frequently asked questions
What is HRA exemption?
HRA exemption is the portion of your House Rent Allowance that is not taxed, available under Section 10(13A) of the Income-tax Act when you pay rent for the home you live in. Only the part of HRA that meets the prescribed limits is exempt; the rest is added to your taxable salary.
How is the HRA exemption amount calculated?
It is the least of three amounts: (1) the actual HRA received, (2) rent paid minus 10% of salary, and (3) 50% of salary for metro cities or 40% for non-metro cities. The smallest of these three is your exempt HRA.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities, where the limit is 50% of salary. Every other city, including large ones like Bengaluru, Hyderabad and Pune, is non-metro with a 40% limit.
Can I claim HRA without rent receipts?
You need rent receipts as proof of payment to claim the exemption. If your annual rent exceeds ₹1,00,000, you must also provide your landlord's PAN. Without supporting documents your employer or the assessing officer may deny the exemption.
Can I claim HRA and a home loan together?
Yes. You can claim HRA exemption on rent paid for the house you live in and, at the same time, claim home loan interest and principal deductions on a property you own — for example, if you own a house in one city but rent and live in another.
Is HRA exemption available in the new tax regime?
No. The HRA exemption is available only under the old tax regime. If you choose the new tax regime, you cannot claim any HRA exemption.
What salary is used to calculate HRA exemption?
Salary here means basic pay plus dearness allowance (DA), and any commission received as a fixed percentage of turnover. Other allowances, bonuses and perquisites are not included in this figure.