HRA Exemption Calculator
House rent allowance is the part of salary that helps you pay rent, and section 10(13A) lets a chunk of it drop out of taxable income if you actually live on rent. The exemption is not a flat percentage — it is the smallest of three figures the law tests. This calculator runs all three limbs at once and shows which one decided your answer.
Applies to FY 2025-26Last updated 12 Oct 2026
Enter values
Results
- HRA exempt from tax
- ₹3,00,000.00
- HRA added to your income
- ₹60,000.00
- HRA received in the year
- ₹3,60,000.00
- Tax saved at the 30% slab
- ₹93,600.00
How is the HRA Exemption calculated?
Enter basic plus DA per month, the HRA your salary structure pays per month, and total rent for the financial year. Then pick metro or non-metro: Delhi, Mumbai, Kolkata and Chennai get the 50% limb, everyone else gets 40%. The calculator returns the exempt amount, the HRA still taxable, the HRA you received during the year and an indicative tax saving at the 30% slab.
Formula
HRA exemption = least of (HRA received for the year, 50% of basic + DA in metro cities or 40% elsewhere, rent paid − 10% of basic + DA). Taxable HRA = HRA received − exemption, floored at zero. Rule 2A of the Income-tax Act, FY 2025-26.
Example
Basic pay of ₹50,000 a month, HRA of ₹30,000 and rent of ₹40,000 a month in Chennai gives annual figures of ₹3,60,000 received, 50% of basic ₹3,00,000 and rent minus 10% of basic ₹4,20,000. The smallest is ₹3,00,000, so that much is exempt and only ₹60,000 of HRA stays taxable. At the 30% slab that exemption is worth ₹18,000 of tax, or ₹18,720 once 4% cess is added.
Things to remember
Keep rent receipts and the landlord's PAN ready when annual rent crosses ₹1,00,000, because the exemption is disallowed without them. These rules apply in the old regime only and rates follow FY 2025-26 — check the latest budget before filing.
Frequently Asked Questions
How is HRA exemption actually calculated?
Take the smallest of three annual figures: the HRA in your salary, 50% of basic plus DA for metro cities or 40% elsewhere, and rent paid minus 10% of basic. With ₹50,000 basic and ₹40,000 monthly rent the third limb is often the binding one.
Can I claim HRA without a rent receipt?
Not reliably. Most employers ask for receipts or a rent paid certificate before allowing the exemption in monthly TDS, and you must keep them for the year. Landlord PAN details are also required once annual rent passes ₹1,00,000.
Is HRA exemption available in the new regime?
No. Section 10(13A) is a old-regime benefit, so anyone under section 115BAC adds the full HRA to taxable income. If your rent is large, compare both regimes here before deciding which one to file under.
Which cities count as metro for the 50% rule?
Only Delhi, Mumbai, Kolkata and Chennai qualify for the higher percentage, and that covers the whole city rather than a postcode. Everywhere else, including Pune, Bengaluru and Hyderabad, uses 40% of basic plus DA.
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