Updated June 2026

HRA Calculator

Paying rent but not sure how much HRA tax exemption you actually get? Enter your salary and rent: see which of the three rules limits your exemption.

Basic Salary (Monthly)

₹

Dearness Allowance (Monthly)

₹

HRA Received (Monthly)

₹

Rent Paid (Monthly)

₹

City Type

50% cities (FY 2026-27): Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad, Ahmedabad

Tax-Exempt HRA

Taxable HRA

Annual HRA Exemption

₹1.26 L

Monthly Exempt

₹10,500

Monthly Taxable

₹9,500

Limiting Rule

Rent paid minus 10% of salary

Three-Way Comparison (Annual)

Actual HRA₹2.40 L

50% of Basic+DA₹2.70 L

Rent - 10% of Basic+DA₹1.26 L

How HRA Exemption Works

House Rent Allowance (HRA) is a component of salary paid to employees to meet rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA is exempt from tax, but it's not the full amount. The exemption is calculated using a three-rule formula, and the lowest value wins.

The Three Rules of HRA Exemption

Your tax-exempt HRA is the minimum of these three amounts:

Actual HRA received: what your employer pays you as HRA
50% of basic salary (metro) or 40% of basic salary (non-metro): salary includes Basic + DA
Rent paid minus 10% of salary: the excess rent beyond 10% of your basic + DA

The third rule is usually the limiting factor for most employees, especially those with relatively low rent or high basic salary.

Metro vs Non-Metro (Updated for FY 2026-27)

From 1 April 2026, the Income Tax Rules 2026 extended the 50% bracket to eight cities: Delhi, Mumbai, Chennai, Kolkata, plus the newly added Bengaluru, Pune, Hyderabad, and Ahmedabad. Earlier, only the first four metros qualified and these IT hubs were treated as non-metro (40%): a change worth noting if you are comparing against older guides. Every other city still follows the non-metro 40% rule.

HRA for Old vs New Tax Regime

Under the new tax regime (which is the default tax regime), HRA exemption is not available. Your entire HRA is taxable. This makes the regime choice critical for employees paying significant rent: especially in metro cities with high rental costs.

If your HRA exemption under the old regime saves more tax than the lower slab rates of the new regime, the old regime may be better for you. Use this calculator to quantify the exemption before deciding.

Documents Needed for HRA Claim

Rent receipts: mandatory for rent above ₹1 lakh/year
Landlord's PAN: required if annual rent exceeds ₹1 lakh
Rent agreement: recommended to have as supporting proof
Bank transfer proof: if paying to parents or for large amounts

How to Use This HRA Calculator

Enter your monthly Basic Salary and DA from your pay slip
Enter the monthly HRA component from your salary
Enter the actual rent you pay per month
Select whether you live in a 50% city (Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune, Hyderabad, Ahmedabad) or a 40% city
The calculator shows your annual exemption, taxable amount, and which rule limits your exemption

Frequently Asked Questions

How is HRA exemption calculated?

HRA exemption is the minimum of three amounts: (1) Actual HRA received from employer, (2) 50% of basic salary for metro cities or 40% for non-metro, (3) Rent paid minus 10% of basic salary. The lowest of these three is your tax-exempt HRA.

Which cities qualify as metro for HRA?

From FY 2026-27, eight cities qualify for the 50% rule: Delhi, Mumbai, Chennai, Kolkata, and the newly added Bengaluru, Pune, Hyderabad, and Ahmedabad. The Income Tax Rules 2026 extended the 50% bracket to these four IT hubs (earlier only the first four metros qualified). Every other city follows the non-metro 40% rule.

Can I claim HRA if I live in my own house?

No. HRA exemption requires you to actually pay rent. If you own the house you live in, you cannot claim HRA exemption. However, if you have a home loan on a different property and pay rent where you live, you can claim both HRA and home loan benefits.

Can I claim HRA without rent receipts?

Rent receipts are mandatory if annual rent exceeds ₹1 lakh. Below that, a declaration may suffice. For amounts above ₹1 lakh/year, you also need the landlord's PAN. Always keep receipts to avoid issues during assessment.

What if I pay rent to my parents?

Yes, you can pay rent to parents and claim HRA exemption. The rental agreement should be genuine, rent should be transferred via bank, and your parent must declare this rental income in their ITR. You cannot pay rent to your spouse.

Is HRA available under the new tax regime?

No. HRA exemption is not available under the new tax regime (Section 115BAC). If you opt for the new regime, your entire HRA becomes taxable. This is a key factor when choosing between old and new regimes.

What if my rent is more than my HRA?

Even if rent exceeds HRA received, your exemption is capped by the three-rule minimum. However, you can claim excess rent (above 10% of income) under Section 80GG if you don't receive HRA: this has a limit of ₹5,000/month.