HRA Calculator
Calculate your House Rent Allowance exemption under Section 10(13A). Updated for FY 2026-27 with 8 metro cities.
House Rent Allowance (HRA) is one of the most significant tax-saving components for salaried individuals in India. Under Section 10(13A) of the Income Tax Act, a portion of the HRA received from your employer can be claimed as tax-exempt, provided you are paying rent for your accommodation. For employees in high-rent cities like Mumbai, Bengaluru, or Delhi, HRA exemption can save tens of thousands of rupees in taxes every year. This calculator instantly computes your exempt HRA by comparing all three conditions defined under the law.
Starting from FY 2026-27 (April 2026), the government has expanded the list of metro cities from 4 to 8 — adding Bengaluru, Hyderabad, Pune, and Ahmedabad alongside the existing Delhi, Mumbai, Chennai, and Kolkata. This means employees in these newly included cities now qualify for the higher 50% of Basic + DA calculation instead of 40%. Note that HRA exemption is available only under the Old Tax Regime — if you have opted for the New Regime, this deduction does not apply.
Salary & Rent Details
Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Ahmedabad
HRA Exemption Calculation
HRA exemption is the minimum of these three conditions:
₹1,20,000
HRA Exemption
₹1,20,000
Taxable HRA
₹36,000
Estimated Tax Saved (at 30% slab)
Monthly Breakdown
₹50,000
Monthly Basic
₹20,000
Monthly HRA
₹15,000
Monthly Rent
₹10,000
Monthly Exemption
Benefits of Using an HRA Calculator
Instant 3-way comparison
See all three HRA exemption conditions side by side and instantly identify which gives you the minimum (exempt) amount — no manual calculations needed.
Monthly breakdown clarity
View your monthly basic, HRA received, rent paid, and exemption amount in a clean grid so you can cross-check with your salary slip.
Tax savings estimate
Get an immediate estimate of how much tax you save through HRA exemption at the 30% slab, helping you plan your overall tax strategy.
Metro and non-metro support
Toggle between metro (8 cities from FY 2026-27) and non-metro to see how your city classification impacts the 50% vs 40% calculation.
Old regime optimization
HRA exemption is only available under the Old Tax Regime. This calculator helps you decide whether opting for old regime with HRA gives you a better deal.
Salient Features of This HRA Calculator
8 metro cities (FY 2026-27 update)
Updated to reflect the April 2026 expansion — Delhi, Mumbai, Chennai, Kolkata plus Bengaluru, Hyderabad, Pune, and Ahmedabad now qualify for the 50% of Basic + DA calculation.
Section 10(13A) formula applied
Calculates all three conditions exactly as defined under Section 10(13A): actual HRA, percentage of salary, and rent minus 10% — then picks the minimum automatically.
PAN requirement awareness
Reminds you that landlord PAN is mandatory if your annual rent exceeds Rs 1 lakh — a compliance point many salaried employees miss during tax filing.
Dearness Allowance inclusion
Includes DA in the salary base for HRA calculation, which is important for government employees and those with a significant DA component in their CTC.
Tax slab estimation
Provides an estimated tax saving at the 30% slab rate so you can see the real rupee benefit of your HRA exemption, not just the exempt amount.
HRA Exemption Formula — Section 10(13A)
The HRA exemption you can claim is the lowest of the following three amounts. This ensures you only get an exemption proportional to your actual rent expense relative to your salary.
Condition 1: Actual HRA Received
The total HRA component paid by your employer during the financial year. This is usually 40-50% of your basic salary and appears as a separate line item in your salary slip.
Condition 2: 50% or 40% of (Basic + DA)
50% of (Basic Salary + Dearness Allowance) if you live in a metro city (8 cities from FY 2026-27), or 40% if you live in a non-metro city. DA is included in the base because it forms part of your pensionable salary.
Condition 3: Rent Paid - 10% of (Basic + DA)
The actual rent paid during the year minus 10% of your Basic Salary + DA. This condition ensures that you bear at least 10% of your salary towards rent before any exemption kicks in. If you pay very low rent, this condition will limit your exemption.
Section 80GG — For Those Without HRA
If you are self-employed or a salaried employee whose employer does not provide an HRA component, you can still claim a rent deduction under Section 80GG. This section provides relief to individuals who pay rent but cannot claim Section 10(13A).
Section 80GG Deduction Limits
- • Maximum deduction: Rs 5,000 per month (Rs 60,000 per year)
- • Deduction is the minimum of: Rs 5,000/month, rent paid minus 10% of total income, or 25% of total income
- • You must not own any residential property in the city where you work or reside
- • You must not be receiving HRA from any employer
- • File Form 10BA declaration with your tax return
Metro vs Non-Metro — HRA Comparison
| Factor | Metro | Non-Metro |
|---|---|---|
| % of Basic + DA | 50% | 40% |
| Cities included | Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Ahmedabad | All other cities and towns |
| Typical rent range | Rs 15,000 — Rs 1,00,000+/month | Rs 5,000 — Rs 30,000/month |
| Tax benefit potential | Higher (50% base + higher rents) | Moderate (40% base + lower rents) |
Important Rules & Compliance
PAN Mandatory for Rent above Rs 1 Lakh
If your annual rent exceeds Rs 1,00,000, you must submit your landlord's PAN to your employer. Without the PAN, the employer may disallow the HRA exemption while computing TDS. If the landlord does not have a PAN, a declaration in Form 60 is required.
Rent Receipts Are Mandatory
Keep rent receipts for every month you claim HRA exemption. Receipts should include the landlord's name, address, amount, period, and signature. Revenue stamps are required in some states for receipts above Rs 5,000. Bank transfer records strengthen your claim.
Family Member Landlord Disclosure
From FY 2026-27, if you are paying rent to a family member (parents, siblings), you must disclose the relationship in your HRA declaration to the employer. The rental arrangement must be genuine — with a proper agreement, bank transfers, and the landlord declaring rental income in their ITR.
HRA Not Available in New Tax Regime
HRA exemption under Section 10(13A) is only applicable under the Old Tax Regime. The New Tax Regime (default from FY 2024-25) does not allow HRA exemption or most other deductions. Salaried employees in high-rent cities should compare both regimes before filing.
Frequently Asked Questions
This HRA calculator provides illustrative estimates only and is not tax advice. HRA exemption under Section 10(13A) is available only under the Old Tax Regime. The 8 metro city classification applies from FY 2026-27 onwards. Tax saved is estimated at the 30% slab rate and your actual savings will depend on your income slab. Landlord PAN is mandatory for annual rent exceeding Rs 1,00,000. Please consult a qualified tax professional for personalised advice based on your specific situation.
Optimize Your Taxes?
Our experts can help you maximize deductions and invest the savings.