HRA Exemption Calculator
Find your exact tax-free HRA live — metro vs non-metro, with the full least-of-three computation of Section 10(13A). Applicable for FY 2026-27 (AY 2027-28) and FY 2027-28.
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- Instant, on-screen results
- Built by our CA · CS team
- Rules cited on the page
Enter your figures — the result on the right updates as you type.
HRA exemption — least-of-three
Annual figuresGet your ITR filed by a CA & maximise HRA
Our experts make sure you claim every rupee of HRA exemption correctly.
Disclaimer: Indicative estimate under Section 10(13A). HRA exemption is available only in the old regime. Actual exemption depends on your salary structure and documentation.
How HRA exemption is calculated
Under Section 10(13A), the tax-free portion of your House Rent Allowance is the least of three amounts. Whatever comes out smallest is your exempt HRA; the rest of the HRA you receive is added to your taxable salary. The calculator above applies this monthly and multiplies by 12.
Metro vs non-metro
The only difference between the two is the percentage-of-salary limit in Condition 2. Just four cities count as metro for HRA purposes; everywhere else is non-metro, even large IT hubs like Bengaluru and Hyderabad.
| Delhi | 50% |
| Mumbai | 50% |
| Kolkata | 50% |
| Chennai | 50% |
| Bengaluru | 40% |
| Hyderabad | 40% |
| Pune | 40% |
| All other cities & towns | 40% |
Worked example
Basic salary ₹50,000/month, HRA received ₹20,000/month, rent paid ₹18,000/month, living in Mumbai (metro). All three conditions are computed monthly, and the least one is the exempt amount.
Key rules & documents
Rent receipts
Keep monthly rent receipts and pay by bank transfer where possible. Cash payments without a trail may be disallowed during scrutiny.
Landlord PAN over ₹1 lakh
If your annual rent exceeds ₹1,00,000, you must provide the landlord's PAN to your employer. Without it, HRA exemption can be denied.
Paying rent to family
You can claim HRA for rent paid to your parents if it's genuine — they must declare it as income and you should keep proof of payment.
New regime not allowed
HRA exemption is available only under the old regime. If you opt for the new regime, the whole HRA you receive is fully taxable.
How the HRA Calculator works
4 steps, start to finish — the same order the tool follows.
- 01Enter your basic salary and DA (dearness allowance).
- 02Enter the actual HRA received and the annual rent you pay.
- 03Select metro (Delhi/Mumbai/Kolkata/Chennai) or non-metro.
- 04The tool returns the exact tax-exempt HRA under Section 10(13A).
Questions people ask
Short answers on HRA Calculator. Tap a question to open it.
01How is HRA exemption calculated?
The exempt HRA is the least of: (1) actual HRA received, (2) 50% of basic+DA for metro / 40% for non-metro, and (3) rent paid minus 10% of basic+DA. The balance HRA is taxable.
02How is HRA exemption calculated under Section 10(13A)?
HRA exemption is the minimum of three amounts: (1) actual HRA received, (2) rent paid minus 10% of basic salary + DA, and (3) 50% of basic salary + DA for metro cities (Delhi, Mumbai, Chennai, Kolkata) or 40% for non-metro cities.
03Can I claim HRA in the new tax regime?
No. HRA exemption under Section 10(13A) is only available in the old tax regime. If you have significant HRA, compare both regimes before choosing.
04Can I claim HRA if I pay rent to my parents?
Yes, you can pay rent to parents and claim HRA exemption if the payment is genuine, made by bank transfer, and supported by a rent agreement. Your parents must declare the rent as income in their tax return. Rent paid to a spouse is generally not allowed.
05Do I need rent receipts and a landlord PAN?
Yes — rent receipts are needed to claim HRA, and if your annual rent exceeds ₹1,00,000 you must report the landlord's PAN to your employer.
06Is PAN of landlord mandatory for HRA exemption?
Yes. If annual rent paid exceeds Rs 1,00,000 (i.e., more than Rs 8,333 per month), the employee must provide the landlord's PAN to the employer for HRA exemption. Without PAN, the employer will not allow the full exemption in Form 16.
07Can I claim HRA and a home loan together?
Yes, if the situations are genuine — e.g. you rent in your work city while owning (and repaying a loan on) a house elsewhere or that is let out.
08Can I claim both HRA and home loan interest deduction?
Yes. You can claim HRA exemption for the city where you work and home loan interest deduction under Section 24(b) for a property in another city that you own. However, if both properties are in the same city, the tax department may question the HRA claim.
09Is HRA available under the new tax regime?
No. HRA exemption under Section 10(13A) is not available under the new tax regime introduced under Section 115BAC. To claim HRA, you must opt for the old tax regime when filing your ITR or declare your regime choice to your employer.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.