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HRA Exemption Calculator India 2026

Calculate the tax-exempt portion of your House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act. Know exactly how much HRA is tax-free and how much is taxable.

How HRA Exemption is Calculated

The HRA exemption is the least of three amounts. Your employer deducts TDS only on the taxable portion (HRA received minus exemption).

HRA Exemption = Minimum of:
1. Actual HRA received from employer
2. 50% of Basic Salary (Metro) OR 40% of Basic (Non-Metro)
3. Rent Paid − 10% of Basic Salary

Metro vs Non-Metro Cities

Metro cities (50% of basic): Mumbai, Delhi, Kolkata, Chennai. These four are explicitly recognised as metro for HRA exemption.

Non-metro (40% of basic): All other cities including Bengaluru, Hyderabad, Pune, Ahmedabad, Surat, Jaipur, Lucknow, etc.

What Counts as Basic Salary?

For HRA calculation, "basic salary" means Basic Pay + Dearness Allowance (DA) forming part of retirement benefits + commission based on fixed % of turnover. Fixed allowances like HRA itself, transport allowance, medical allowance are NOT included.

Conditions for HRA Exemption

✔ You must actually be paying rent — not living in your own house.

✔ The accommodation must be in India.

✔ Rent exceeding ₹1 lakh/year — landlord's PAN must be submitted to employer.

✔ HRA exemption is only available under the Old Tax Regime. It is not available if you opt for the new regime.

Frequently Asked Questions

HRA exemption under Section 10(13A) is the LEAST of: (1) Actual HRA received, (2) 50% of basic salary for metro / 40% for non-metro, (3) Rent paid minus 10% of basic salary. Only the exempt portion is tax-free; the rest is added to taxable salary.
No. HRA exemption requires you to actually pay rent for accommodation. If you own the house you live in, the entire HRA received is taxable. However, you can claim home loan interest deduction under Section 24(b) separately.
If annual rent exceeds ₹1 lakh (₹8,333/month), you must provide the landlord's PAN to your employer. Without this, the employer cannot grant the HRA exemption for the excess rent. If the landlord doesn't have PAN, you can submit a declaration to that effect.
Yes, if you own a house in one city and live on rent in another city for work, you can claim HRA exemption for the rent paid AND deduct home loan interest under Section 24(b) for the self-owned property. Both deductions are available simultaneously under the old tax regime.
No. HRA exemption under Section 10(13A) is not available if you choose the new tax regime. Under the new regime, your full HRA received is added to taxable salary. This is one of the major reasons many HRA-heavy employees prefer the old regime.

🏠 HRA Exemption Calculator

Monthly Salary Details (₹)
Include only DA forming part of retirement benefits