BharatDash
FIFA Live
Nifty 5024,812.40▲ 0.42%
Sensex81,559.65▲ 0.38%
Bank Nifty55,302.10▼ 0.15%
USD/INR86.52
Gold 24K₹1,49,000/10g
Silver₹2,58,700/kg
Nifty 5024,812.40▲ 0.42%
Sensex81,559.65▲ 0.38%
Bank Nifty55,302.10▼ 0.15%
USD/INR86.52
Gold 24K₹1,49,000/10g
Silver₹2,58,700/kg

HRA Exemption Calculator

Calculate your exact House Rent Allowance tax exemption for FY 2026-27 under Section 10(13A) — see which of the 3 conditions caps your exemption.

Old regime only: HRA exemption under Section 10(13A) is not available if you've opted for the New Tax Regime. Compare old vs new regime →
Your Salary & Rent
₹
₹
₹

Metro = Mumbai, Delhi, Kolkata, Chennai only. Bangalore, Hyderabad, Pune = Non-Metro for HRA purposes.

Rent receipts and landlord PAN are required for claims above ₹1,00,000/year. Calculations are illustrative — consult a CA for filing decisions.

HRA exemption: ₹2,40,000/year — limited by "Actual HRA received".

HRA Exemption

₹2,40,000

Taxable HRA

₹0

The 3 conditions (exemption = minimum of these)

1. Actual HRA receivedLowest

₹2,40,000

₹2,40,000

2. Rent paid − 10% of basic

₹3,00,000 − ₹60,000

₹2,40,000

3. 40% of basic salary (non-metro)

40% × ₹6,00,000

₹2,40,000

Estimated Tax Saved

Since your total income isn't known here, these are quick estimates at common tax slabs — multiply your exemption by your marginal rate.

At 20% slab

You save ₹48,000

At 30% slab

You save ₹72,000

Want to see how this HRA exemption affects your overall tax under the old regime? Try the Tax Regime Calculator →

Working from your CTC? Try the Salary In-Hand Calculator →

How to calculate HRA exemption

  1. 1Enter your basic salary — Use your annual basic salary — not your full CTC or gross salary. This is the figure your HRA and PF are typically calculated against, found on your payslip or Form 16.
  2. 2Enter the HRA you actually received — This is the annual House Rent Allowance component paid by your employer, shown separately on your payslip.
  3. 3Enter the rent you actually paid — Your total annual rent, based on your rent agreement or receipts — not what you're allowed to claim, just what you actually paid.
  4. 4Select metro or non-metro — Only Mumbai, Delhi, Kolkata, and Chennai count as metro. Every other city, including Bangalore, Hyderabad, and Pune, is non-metro for this calculation.

Why metro vs non-metro matters for HRA

Under Section 10(13A), the third condition of the HRA exemption formula uses 50% of basic salary for metro cities — but only Mumbai, Delhi, Kolkata, and Chennai qualify as metro for this rule. That's it — no other city gets the higher rate, no matter how large or expensive it is to live there.

All other cities, including Bangalore, Hyderabad, Pune, and Ahmedabad, are non-metro for HRA purposes, which means only 40% of basic salary applies to the third condition. This is one of the most commonly misunderstood rules in Indian income tax — many employees in Bangalore and Hyderabad wrongly assume they qualify for the metro rate simply because these are large, high cost-of-living cities. The exemption still comes out to the minimum of all three conditions, so a lower percentage here can shrink your exemption meaningfully if condition 3 happens to be your limiting factor.

It's also worth remembering that HRA exemption is only claimable under the old tax regime. If you've opted for the new regime, you get a higher standard deduction (₹75,000 vs ₹50,000) instead, but no HRA exemption at all — regardless of how much rent you pay. Compare whether old regime with HRA exemption beats new regime for you →

Frequently asked questions

Is HRA exemption available under the new tax regime?

No — HRA exemption under Section 10(13A) is exclusively an old tax regime benefit. Under the new regime, you get a ₹75,000 standard deduction instead, but no HRA exemption regardless of how much rent you actually pay.

Is Bangalore a metro city for HRA?

No — only Mumbai, Delhi, Kolkata, and Chennai are classified as metro for HRA purposes. Bangalore, Hyderabad, Pune, and Ahmedabad are all non-metro, so 40% of basic salary applies to the third condition, not 50%. This is one of the most common mistakes salaried employees make when self-calculating their exemption.

What if I pay rent to a family member?

You can claim HRA exemption if you're paying rent to your parents — this is legal as long as there's a genuine rent agreement and a documented payment trail (bank transfer, not cash). Your parents must declare the rent received as rental income in their own tax return. However, you cannot claim HRA for rent paid to a spouse, since a married couple is treated as one household for this purpose.

Do I need receipts to claim HRA?

Yes — rent receipts are required for any monthly rent above ₹3,000. If your annual rent exceeds ₹1,00,000, you must also provide your landlord's PAN to your employer, or the exemption may be disallowed at the time of TDS calculation.

What if my HRA received is more than my actual rent?

Your exemption is capped by the second condition — rent paid minus 10% of basic salary. If your actual rent is low relative to your HRA, this condition becomes the limiting factor, and any HRA received beyond what's needed to cover your rent (plus the 10% threshold) becomes fully taxable.