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HRA Exemption Calculator FY 2026-27

Calculate tax-free HRA under Section 10(13A). Metro/non-metro rules applied automatically.

Last updated: July 2026

Note: HRA exemption is available only under the Old Tax Regime. Not available under the New Tax Regime.
Metro cities only: Mumbai, Delhi, Kolkata, Chennai. Bengaluru, Hyderabad, Pune are not metro under the Income Tax Act.

Result

Condition 1: HRA Received (Annual)₹0
Condition 2: Rent Paid − 10% of (Basic+DA)₹0
Condition 3: 40% of (Basic+DA)₹0
HRA Exemption (minimum of above)₹0
Taxable HRA₹0
Regime notice: HRA exemption is available only under the Old Tax Regime. If you have opted for the New Tax Regime, you cannot claim HRA exemption under Section 10(13A).
Don't receive HRA? If you don't receive HRA but pay rent, you may be eligible for deduction under Section 80GG (max ₹60,000/year). Consult a Chartered Accountant to check eligibility.

How HRA Exemption is Calculated

Under Section 10(13A) of the Income Tax Act, HRA exemption is the minimum of three conditions:

  1. Condition 1: Actual HRA received from employer (annual)
  2. Condition 2: Actual rent paid minus 10% of (Basic Salary + Dearness Allowance) — annual (if negative, treated as ₹0)
  3. Condition 3: 50% of (Basic Salary + DA) for metro cities or 40% for non-metro cities — annual

The least of these three amounts is your tax-free HRA exemption. The remaining HRA is added to your taxable income.

Worked Example

Basic Salary: ₹50,000/mo | DA: ₹0 | HRA Received: ₹20,000/mo | Rent Paid: ₹18,000/mo | Non-Metro

Condition 1 ₹20,000 × 12 = ₹2,40,000
Condition 2 (₹18,000 × 12) − 10% of (₹50,000 × 12) = ₹2,16,000 − ₹60,000 = ₹1,56,000
Condition 3 40% of ₹6,00,000 = ₹2,40,000
HRA Exemption Minimum(₹2,40,000, ₹1,56,000, ₹2,40,000) = ₹1,56,000
Taxable HRA ₹2,40,000 − ₹1,56,000 = ₹84,000

Related Pages

Income Tax Calculator FY 2026-27 — Old vs New regime Old vs New Tax Regime Which regime saves more? HRA Exemption Guide Section 10(13A) explained in detail Section 87A Rebate Guide Tax-free income up to ₹12L GST Calculator 2026 Regular & Composition Scheme — updated rates

FAQs

Only four cities are classified as metro under the Income Tax Act for HRA: Mumbai, Delhi, Kolkata, and Chennai. Bengaluru, Hyderabad, Pune, Ahmedabad, and other cities are treated as non-metro regardless of cost of living. For non-metro cities, the exemption is 40% of basic salary + DA instead of 50%.
No. HRA exemption under Section 10(13A) is available only under the Old Tax Regime. If you opt for the New Tax Regime, you cannot claim HRA exemption. However, if you are a salaried employee living in rented accommodation, you may want to evaluate which regime is more beneficial overall.
If the actual rent paid is less than 10% of your basic salary plus dearness allowance, Condition 2 becomes negative. In that case, no exemption is available from Condition 2 — it is treated as ₹0. Your exemption will then be the minimum of the remaining two conditions.
Section 80GG is for individuals who do not receive HRA from their employer but pay rent for accommodation. The deduction is the least of: (a) ₹5,000 per month (₹60,000 per year maximum), (b) 25% of total adjusted income, or (c) actual rent paid minus 10% of total adjusted income. You must file a declaration in Form 10BA. Consult a CA for proper claim.
Yes. If your monthly rent exceeds ₹3,000, you need rent receipts to substantiate your HRA claim. If your annual rent exceeds ₹1,00,000, you also need to provide the landlord's PAN details. Your employer may ask for these documents during proof submission.