HRA Exemption Calculator – Section 10(13A)

HRA Calculator for Tax Exemption

Use this free HRA calculator to estimate the exempt and taxable portions of House Rent Allowance under Section 10(13A). Enter the salary used for HRA, allowance received, rent paid and location of the rented home to calculate the annual exemption under the old tax regime.

HRA Calculator

Estimate your annual House Rent Allowance exemption under Section 10(13A) and Rule 2A. The lowest of the three calculated limits is exempt.

Monthly salary for HRA (₹)Basic + eligible DA + turnover-based commission, if applicable

Monthly HRA received (₹)

Monthly rent paid (₹)

Estimated HRA Exemption (Annual)

₹0

1. Actual HRA received₹0

2. Rent paid − 10% of salary₹0

3. 50% of salary₹0

Estimated taxable HRA (Annual)₹0

Specified metro cities for this calculation are Mumbai, Kolkata, Delhi and Chennai. HRA exemption is available under the old tax regime, subject to actual rent and supporting records. Estimates only.

Reviewed on July 13, 2026 using Income Tax Department guidance for AY 2026–27.

HRA exemption is not the full allowance automatically. Under Section 10(13A) read with Rule 2A, the exempt amount is limited to the lowest of actual HRA received, rent paid minus 10% of salary, and 50% or 40% of salary depending on the location of the rented accommodation.

Quick answer: HRA exemption is available to eligible salaried taxpayers who receive HRA and actually pay rent for the home they occupy. The exemption can be claimed under the old tax regime; it is not available under the new tax regime.

How to use the HRA calculator

1. Select whether the amounts you will enter are monthly or annual.
2. Choose Specified Metro if the rented home is in Mumbai, Kolkata, Delhi or Chennai. Choose Other City for every other location.
3. Enter salary for HRA purposes: basic salary plus eligible dearness allowance and turnover-based commission, where applicable.
4. Enter the HRA received and actual rent paid for the same period.
5. Review all three limits, estimated annual exemption and estimated taxable HRA.

Exempt HRAThe lowest of the three statutory limits, subject to actual eligibility and evidence.

Taxable HRAActual HRA received minus the estimated exempt amount.

HRA exemption formula under Section 10(13A)

The estimated exemption is the least of the following three amounts calculated for the relevant period:

1. Actual HRA received

2. Rent paid − 10% of salary for HRA

3. 50% of salary for a specified metro home, or 40% for another city

If rent paid minus 10% of salary is zero or negative, this calculator treats that limb as zero. Consequently, no HRA exemption is estimated for that period.

What salary should be entered?

For this calculation, salary generally means basic salary plus dearness allowance to the extent it forms part of retirement benefits and commission based on a fixed percentage of turnover achieved by the employee. Do not enter gross salary, employer PF contribution, bonus or unrelated allowances merely because they appear on the payslip.

Period matching matters: Enter salary, HRA and rent for the same months. If any amount, city or rented home changes during the year, calculate each distinct period separately and add the eligible exemptions.

HRA calculation example

Assume monthly salary for HRA is ₹50,000, monthly HRA received is ₹20,000 and monthly rent is ₹18,000. The rented home is in Delhi and the values remain unchanged for 12 months.

Exemption test	Annual calculation	Amount
Actual HRA received	₹20,000 × 12	₹2,40,000
Rent minus 10% of salary	(₹18,000 × 12) − 10% of ₹6,00,000	₹1,56,000
50% of salary	50% of ₹6,00,000	₹3,00,000

The lowest amount is ₹1,56,000, so that is the estimated annual HRA exemption. The remaining ₹84,000 of the ₹2,40,000 HRA received is estimated as taxable HRA.

Metro and non-metro percentage

Location of rented home	Salary percentage	Calculator option
Mumbai, Kolkata, Delhi or Chennai	50%	Specified Metro
All other Indian cities and towns	40%	Other City

The 50% test is limited to the four specified cities. Bengaluru, Hyderabad, Pune, Ahmedabad and other large cities use the 40% test for HRA calculation unless the law is changed.

Documents and information to keep

• rent agreement, where applicable;
• rent receipts for the relevant months;
• bank or other payment evidence;
• landlord's name, address and PAN where required;
• payslips and Form 16 showing HRA; and
• details of any change in salary, rent, landlord or city during the year.

The Income Tax Department's salaried-employee guidance states that an employee must report the landlord's PAN to the employer when annual rent paid exceeds ₹1,00,000.

When HRA exemption may be zero or unavailable

• You choose the new tax regime.
• You receive HRA but do not actually pay rent.
• You live in a house owned by you and do not pay rent for the occupied accommodation.
• Rent paid does not exceed 10% of salary for the relevant period.
• HRA is not part of your salary; Section 80GG may be relevant instead, subject to its separate conditions.

Related salary and tax tools

Income Tax Calculator Old vs New Tax Regime Salary Take-Home Calculator Rent Receipt Generator Section 87A Rebate Calculator TDS on Salary Calculator

Frequently asked questions

What is HRA exemption?

HRA exemption is the eligible portion of House Rent Allowance that a salaried taxpayer may exclude from taxable salary under Section 10(13A), subject to Rule 2A, actual rent payment and the old tax regime.

Is HRA exemption available in the new tax regime?

No. Income Tax Department guidance states that the Section 10(13A) HRA exemption is available under the old tax regime but not under the new tax regime.

How is HRA exemption calculated?

Calculate actual HRA received, rent paid minus 10% of salary, and 50% of salary for a specified metro or 40% for another city. The lowest eligible amount is the exemption.

Which cities qualify for the 50% HRA limit?

Mumbai, Kolkata, Delhi and Chennai qualify for the 50% salary limit. A rented home in any other city uses the 40% limit.

What does salary mean for HRA calculation?

It generally includes basic salary, dearness allowance when it forms part of retirement benefits, and turnover-based commission, where applicable. It is not the same as total gross salary.

Is landlord PAN required for HRA?

The Income Tax Department's employee guidance says the landlord's PAN must be reported to the employer when annual rent paid exceeds ₹1,00,000. Keep supporting rent and payment records as well.

Can I claim HRA if I live in my own house?

Not for that self-owned home when you do not actually pay rent. Official guidance treats HRA as fully taxable when an employee lives in their own house or pays no rent.

Should I calculate HRA monthly or annually?

Annual inputs work when salary, HRA, rent and location remain consistent. If these change, calculate the exemption separately for each applicable period and combine the results.

What is taxable HRA?

Taxable HRA is actual HRA received minus the eligible exemption. It forms part of taxable salary, subject to the final computation and information reported by the employer.

Official sources

• Income Tax Department – Benefits allowable to employees for AY 2026–27
• Income Tax Department – Schedule 10(13A): House Rent Allowance
• Income Tax Department – New versus old tax regime FAQs
• CBDT – ITR-1 validation rules for AY 2026–27

Disclaimer: This calculator provides an educational estimate and does not constitute tax advice. Actual exemption may depend on employment records, rent evidence, changes during the year and return-filing treatment. Verify current law and your Form 16 or consult a qualified tax professional before filing.