HRA Calculator
HRA Exemption Calculator India 2026
Calculate House Rent Allowance Tax Exemption Under Section 10(13A)
HRA Calculator: Enter Your Details
Use our HRA exemption calculator to find out how much of your House Rent Allowance is tax-free under Section 10(13A) of the Income Tax Act. HRA exemption is the minimum of 3 conditions.
Salary Details
Rent Details
HRA Exemption Computation
HRA Exemption Rules: Section 10(13A)
How HRA is Calculated
- Actual HRA Received from employer
- Rent Paid − 10% of Basic + DA
- 50% of Basic (Metro) or 40% (Non-Metro)
- Exemption = Minimum of above 3
Metro vs Non-Metro Cities
- Metro (50%): Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru
- Non-Metro (40%): All other cities
- Difference can save up to ₹30,000 in tax for ₹10L basic salary
Metro vs Non-Metro: Impact on HRA
| Parameter | Metro Cities | Non-Metro Cities |
|---|---|---|
| Salary Percentage | 50% of Basic | 40% of Basic |
| Cities | Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru | All other cities in India |
| Example (₹6L Basic) | ₹3,00,000 | ₹2,40,000 |
| Max Tax Saving (30% slab) | Up to ₹90,000 | Up to ₹72,000 |
Understanding HRA Exemption: Complete Guide for Salaried Employees
House Rent Allowance (HRA) is one of the most significant tax-saving components in a salaried employee's compensation structure. Under Section 10(13A) of the Income Tax Act, a portion of the HRA received from your employer is exempt from tax, providing substantial relief to employees living in rented accommodation. Our HRA calculator helps you accurately determine your tax-exempt HRA amount based on the three statutory conditions prescribed by the Income Tax Department.
HRA Exemption in Old vs New Tax Regime
HRA exemption under Section 10(13A) is only available under the Old Tax Regime. If you opt for the New Tax Regime (default from FY 2023-24 under the Income Tax Act, 2025), you cannot claim HRA exemption, regardless of your actual rent payments. This makes the choice between tax regimes particularly important for employees living in rented accommodation. Those paying significant rent may find the Old Tax Regime more beneficial despite its higher tax rates, as the HRA exemption along with other deductions like 80C, 80D, and home loan interest can result in lower overall tax liability. Use our Income Tax Calculator to compare both regimes.
Section 80GG: For Employees Without HRA
For self-employed individuals or salaried employees who do not receive HRA from their employer, Section 80GG provides an alternative deduction for rent paid. The deduction is the minimum of: ₹5,000 per month (₹60,000/year), rent paid minus 10% of total income, or 25% of total income. To claim Section 80GG, you must not own any residential property at the place of employment, and you must file a declaration in Form 10BA.
Documents Required for HRA Claim
- Rent Receipts: Monthly rent receipts signed by your landlord
- Rent Agreement: Mandatory if annual rent exceeds ₹1,00,000
- Landlord's PAN: Required if annual rent exceeds ₹1,00,000
- Proof of Residence: Utility bills or Aadhaar showing rented address
Frequently Asked Questions about HRA Calculator
Find answers to common questions about hra calculator. These FAQs are designed to help you understand key concepts and make informed decisions.
1. What is HRA exemption under Section 10(13A)?
HRA exemption is calculated as the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic salary for metro cities or 40% for non-metros. Metro cities include Delhi, Mumbai, Chennai, Kolkata, Hyderabad, and Bengaluru.
2. What documents are required to claim HRA exemption?
To claim HRA exemption, you need: (1) Rent receipts with landlord's name and address, (2) Rent agreement if rent exceeds ₹1 lakh/year, (3) Landlord's PAN if rent exceeds ₹1 lakh/year, (4) Proof of HRA component in salary.
3. Can I claim HRA if I pay rent to my parents?
Yes, you can claim HRA exemption if you pay rent to your parents. However, your parents must declare the rent as income from house property in their tax returns. The arrangement should be genuine with proper documentation.
4. Is HRA exemption available in the new tax regime?
No, HRA exemption under Section 10(13A) is NOT available if you opt for the new tax regime under the Income Tax Act, 2025. You can only claim HRA exemption under the old tax regime.
5. What is Section 80GG for rent deduction?
Section 80GG allows deduction for rent paid if you don't receive HRA from employer. The deduction is minimum of: (1) ₹5,000 per month (₹60,000/year), (2) Rent paid minus 10% of total income, (3) 25% of total income. You must not own any residential property.
This HRA Calculator is for informational and educational purposes only. The calculations are based on Section 10(13A) of the Income Tax Act, 2025, and rules applicable for Tax Year 2026-27. HRA exemption is only available under the Old Tax Regime. Always consult a qualified Chartered Accountant for personalized guidance.