HRA Calculator - Calculate HRA Exemption for FY 2025-26

Use our free HRA calculator to find your exact HRA tax exemption for FY 2025-26. Enter salary, rent & city — get instant results. Old regime only.

Monthly figures

₹
₹5,000₹5,00,000
₹
₹0₹3,00,000
₹
₹0₹3,00,000
City

HRA exempt (monthly)

₹13,000

Taxable HRA ₹7,000 · ₹1,56,000/yr exempt
Exemption is least ofAmount
Actual HRA received₹20,000
Rent − 10% of basic₹13,000
50% of basic₹25,000

How HRA exemption works

Exemption (Sec 10(13A))

min( HRA, Rent − 10%·Basic, 50%/40%·Basic )

50% for metro cities, 40% otherwise

Find Out Exactly How Much HRA You Can Claim Tax-Free

Enter your salary, rent, and city type above — the HRA calculator shows you the exact portion of your House Rent Allowance that is exempt from income tax in seconds. No guesswork, no spreadsheets.

This is useful at the start of every financial year when you declare your rent to your employer, or when filing your ITR and you want to double-check the exempt figure. It works under the old tax regime (FY 2025-26 / AY 2026-27) — HRA exemption is not available if you have opted for the new tax regime.

How to Use This HRA Calculator

  1. Enter your Basic Salary + DA (Dearness Allowance) — this is your monthly basic pay plus any dearness allowance. Check your payslip if unsure.
  2. Enter the HRA received — the House Rent Allowance amount your employer pays you each month (also on your payslip).
  3. Enter the actual rent you pay — the monthly rent on your rent agreement.
  4. Select your city type — choose Metro if you live in Delhi, Mumbai, Kolkata, or Chennai; choose Non-Metro for all other cities.
  5. Read your result — the calculator instantly shows your exempt HRA (tax-free portion), the taxable HRA, and breaks down all three comparison values so you can see how the final number was reached.

Worked Example – HRA Exemption Calculation

Imagine Priya works in Bengaluru (Non-Metro) and her details for FY 2025-26 are:

  • Basic Salary + DA: ₹50,000/month
  • HRA received from employer: ₹20,000/month
  • Actual rent paid: ₹18,000/month

The exempt amount is the lowest of three values:

ConditionCalculationAmount
(a) Actual HRA received—₹20,000
(b) Rent paid minus 10% of salary₹18,000 − ₹5,000₹13,000
(c) 40% of salary (Non-Metro)40% × ₹50,000₹20,000

The lowest figure is ₹13,000. So Priya's HRA exemption is ₹13,000 per month — that is ₹1,56,000 per year that reduces her taxable income. The remaining ₹7,000/month (₹20,000 − ₹13,000) is added back to her taxable salary.

How HRA Exemption Is Calculated (Section 10(13A))

The rule comes from Section 10(13A) of the Income Tax Act, 1961. The tax-free part of your HRA is always the minimum (least) of these three amounts:

Exempt HRA = Minimum of:
  (a) Actual HRA received from employer
  (b) Rent paid − 10% of (Basic Salary + DA)
  (c) 50% of (Basic Salary + DA)  → Metro cities
      40% of (Basic Salary + DA)  → Non-Metro cities

Note: 'Salary' here = Basic Pay + Dearness Allowance only.
Taxable HRA = HRA received − Exempt HRA

Metro cities as defined by the Income Tax Department are Delhi, Mumbai, Kolkata, and Chennai. All other cities — including Bengaluru, Hyderabad, Pune, and Ahmedabad — count as non-metro for this calculation.

You can verify the official rule on the Income Tax Department website (incometax.gov.in).

Key Rules and Limits for FY 2025-26

  • Old regime only: HRA exemption under Section 10(13A) is available only if you have not opted for the new tax regime. Under the new regime, your full HRA is taxable.
  • Rent receipts required: If your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer.
  • Actual rent must exceed 10% of salary: If your rent paid minus 10% of salary is zero or negative, your exempt HRA is ₹0.
  • Self-owned or rent-free accommodation: No HRA exemption is allowed if you live in a house you own or pay no rent.
  • Partial-year claims: The exemption is calculated month by month. If you rented only for part of the year, only those months count.
  • HRA + Home Loan both allowed: You can claim both HRA exemption (for your rented city) and home loan tax benefits (for a property in a different city) at the same time.

Practical Tips to Get the Most from Your HRA

  • Keep rent receipts — your employer needs them every March (or at the time of investment declaration). Scanned copies are generally accepted.
  • Negotiate a better salary structure: Maximising your HRA component (within limits) can meaningfully lower your taxable income if you pay significant rent.
  • Paying rent to a parent? You can — but get a proper rent agreement and make sure your parent declares the rental income in their own ITR.
  • Don't forget DA: Many private-sector employees have zero DA, so their salary base for this formula is just basic pay. Check your payslip carefully.
  • Annual vs monthly view: The exemption limit is calculated month by month and then added up. If your rent changed mid-year, recalculate for each period separately.

Everything is calculated right here in your browser — no data is sent to any server, so your salary and rent figures stay completely private.

Bottom line: Knowing your exact exempt HRA before you file your ITR can save you from both underclaiming (paying more tax than needed) and overclaiming (risking a tax notice). Use the calculator above to get your number in under a minute.

Frequently asked questions

Is HRA exemption available under the new tax regime in FY 2025-26?+
No. HRA exemption under Section 10(13A) is only available if you opt for the old tax regime. If you have chosen the new tax regime, your entire HRA from your employer is fully taxable.
Which cities are considered 'Metro' for HRA exemption?+
Only four cities qualify as metro for this purpose: Delhi, Mumbai, Kolkata, and Chennai. Residents there get 50% of Basic + DA as the third comparison value. Every other city — including Bengaluru, Hyderabad, Pune, and Ahmedabad — is treated as non-metro (40%).
Can I claim HRA if I pay rent to my parents?+
Yes, you can pay rent to a parent and claim HRA exemption — provided you have a genuine rent agreement and actually transfer the rent. Your parent must declare the rent received as income in their own ITR. Paying rent to a spouse is generally not accepted by the tax department.
What documents do I need to submit to my employer to claim HRA?+
You typically need to submit rent receipts (monthly or quarterly). If annual rent exceeds ₹1,00,000, you must also provide your landlord's PAN. Some employers also ask for a copy of the rent agreement.
Can I claim both HRA exemption and a home loan deduction at the same time?+
Yes, in certain situations. For example, if you own a flat in Chennai but are posted in Mumbai and paying rent there, you can claim HRA exemption for the Mumbai rent and also claim your home loan interest and principal deductions for the Chennai property — both at the same time.
What if my employer does not give me HRA — can I still claim a deduction for rent?+
If your salary does not include an HRA component at all, you may be able to claim deduction under Section 80GG (for rent paid) instead, subject to separate limits and conditions. Section 10(13A) HRA exemption applies only when your employer actually pays you an HRA component.
Is the data I enter into this calculator saved or uploaded anywhere?+
No. All calculations run entirely in your browser. Your salary, rent, and HRA figures are never sent to any server or stored anywhere. You can use the tool freely without any privacy concern.
My rent changes mid-year. How do I calculate HRA exemption for a partial year?+
The exemption is worked out month by month. Calculate the exempt amount separately for each period with a different rent amount, then add the monthly figures together to get your annual exempt HRA. This calculator uses monthly inputs, so just recalculate for each different period and sum them up yourself.