If you live in rented accommodation and receive House Rent Allowance (HRA) from your employer, a big chunk of it can be tax-free. This free HRA exemption calculator applies the exact Section 10(13A) rule for FY 2025-26 and shows how much of your HRA is exempt — and how much is taxable.
HRA Exemption Calculator
Find out how much of your House Rent Allowance is tax-free. We apply the Section 10(13A) rule — your exemption is the least of three amounts.
⚑ HRA exemption is available under the old tax regime only. The new regime does not allow it.
Your annual HRA exemption
₹0
Taxable HRA: ₹0 / year
How this works: Under Section 10(13A), the exempt HRA is the least of — (1) actual HRA received, (2) 50% of salary in a metro or 40% elsewhere, and (3) rent paid minus 10% of salary. Here "salary" means Basic + Dearness Allowance. Figures are monthly; the exemption is shown annually. This is an educational estimate, not tax advice. Next, see which regime saves you more with our Old vs New Tax Regime Calculator.
How HRA exemption is calculated
Under Section 10(13A) of the Income Tax Act, your exempt HRA is the least of these three amounts:
- The actual HRA you receive from your employer
- 50% of your salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% if you live anywhere else
- Rent paid minus 10% of salary
Here, “salary” means Basic pay + Dearness Allowance. Whatever HRA you receive above the exempt amount is added to your taxable income.
A worked example
Say you earn ₹50,000 Basic per month, receive ₹20,000 HRA, pay ₹25,000 rent, and live in Mumbai (a metro):
- Actual HRA received = ₹20,000
- 50% of salary = ₹25,000
- Rent − 10% of salary = ₹25,000 − ₹5,000 = ₹20,000
The least is ₹20,000 per month (₹2.4 lakh a year) — that entire HRA is tax-free. Move to a non-metro city and the 40% cap (₹20,000) still applies, but your exemption may fall if your rent is lower.
Important: HRA works only in the old regime
HRA exemption is available only under the old tax regime. The new regime — which is the default — does not allow it. So before you count on HRA savings, compare both regimes for your salary with our Old vs New Tax Regime Calculator. For many people the new regime still wins overall despite losing HRA; for those with high rent in a metro plus other deductions, the old regime can come out ahead. You can also check how HRA affects your monthly pay with the take-home salary calculator.
Documents you’ll need
- Rent receipts and a rent agreement
- Your landlord’s PAN, if your annual rent exceeds ₹1 lakh
- Proof of rent payment (bank transfer is ideal)
Frequently asked questions
Is HRA exemption available under the new tax regime?
No. HRA exemption under Section 10(13A) is available only under the old tax regime. If you opt for the new regime, you cannot claim it — so compare both regimes before deciding.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities (50% of salary). All others, including Bengaluru, Hyderabad and Pune, are non-metro at 40%.
Can I claim HRA if I pay rent to my parents?
Yes, if you genuinely pay rent to your parents for a home they own — ideally with a rent agreement and receipts. The rent becomes taxable income in your parents’ hands.
Can I claim both HRA and a home loan?
Yes, in some situations — for example, if you own a house in one city but live on rent in another for work, or you rent while your own property is let out. Both benefits can be claimed if the circumstances are genuine.
What if I don’t receive HRA but pay rent?
If your salary has no HRA component, you may be able to claim a deduction for rent under Section 80GG instead, subject to separate limits. This calculator covers the standard HRA exemption under Section 10(13A).
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