HRA Exemption Calculator 2026 — House Rent Allowance

Enter your details (monthly)

Basic Salary + DA Per month

HRA Received Per month, from payslip

Actual Rent Paid Per month

City Type

This exemption only applies under the Old Tax Regime. If you've opted for the New Regime, HRA exemption isn't available.

How HRA exemption is calculated

Under Section 10(13A), the HRA exemption is the lowest of these three amounts:

Actual HRA received from your employer
Rent paid minus 10% of (Basic Salary + DA)
50% of Basic Salary + DA (for metro cities) or 40% (for non-metro cities)

Whatever is left of your HRA after this exemption is added back to your taxable salary.

Living in a metro but working remotely from a smaller city? Use the location where you actually reside and pay rent, not your employer's registered address.

FAQs

Which cities count as "metro" for HRA?

For HRA purposes, only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities, qualifying for the 50% exemption limit. All other cities, including Bengaluru, Hyderabad and Pune, use the 40% limit.

Do I need rent receipts to claim HRA exemption?

Yes — your employer will typically ask for rent receipts, and if your annual rent exceeds ₹1,00,000, your landlord's PAN as well, to process the exemption in your Form 16.

Can I claim HRA if I live with my parents?

Yes, if you pay rent to your parents and they own the property, this can be a valid HRA claim — as long as the rent is genuinely paid and declared as income by your parents.

What if I don't get HRA but pay rent?

You may be able to claim a deduction under Section 80GG instead, subject to its own limits and conditions, if you don't receive HRA as part of your salary.