HRA Calculator India 2026-27 – Free Exemption Calculator (8 Metro Cities)
Use our free HRA Calculator India to find your House Rent Allowance exemption under Section 10(13A). See the three statutory rules side by side, the tax-free amount and your estimated tax saving.
HRA Calculator India
House Rent Allowance Exemption
Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A). Find the exact exempt amount using the three statutory rules — instantly and accurately.
HRA Exemption Calculator
Basic • DA • HRA • Rent
Enter your salary and rent details
and click Calculate HRA Exemption
💰 Estimated Tax Savings from HRA
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What is HRA (House Rent Allowance)?
HRA (House Rent Allowance) is a component of your salary paid by your employer to help you meet your rental expenses. Under Section 10(13A) of the Income Tax Act, 1961, a portion of the HRA you receive can be claimed as a tax exemption — reducing your overall taxable income under the Old Tax Regime.
However, not all HRA you receive is tax-free. The exemption is calculated as the least of three statutory amounts. Anything above that is fully taxable as part of your salary.
HRA Exemption Formula (Section 10(13A))
According to Rule 2A of the Income Tax Rules, 1962 (and the Income-tax Rules, 2026 from FY 2026-27), HRA exemption is the least of these three amounts:
HRA Received = Your monthly HRA × 12
Rule 2 — Rent Paid minus 10% of Basic + DA:
(Actual Rent Paid − 10% of (Basic + DA)) × 12
Rule 3 — 50% or 40% of Basic + DA:
• 50% of (Basic + DA) for Metro cities (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad)
• 40% of (Basic + DA) for Non-Metro cities
HRA Exemption = MIN(Rule 1, Rule 2, Rule 3)
Metro vs Non-Metro Cities (For HRA Only)
From FY 2026-27, 8 cities qualify as Metro for HRA purposes (earlier only the first 4):
- Delhi
- Mumbai
- Kolkata
- Chennai
- Bengaluru
- Hyderabad
- Pune
- Ahmedabad
All other cities — including Gurgaon, Noida, Jaipur, Lucknow — fall under the non-metro category (40% cap). For FY 2025-26 (ITR filed in 2026), Bengaluru, Hyderabad, Pune and Ahmedabad were still non-metro, so choose the city type carefully.
How to Use This HRA Calculator
Select City Type
Metro (8 cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) or Non-Metro (all others).
Enter Basic Salary
Your monthly Basic salary (exclude HRA, special allowances, bonuses).
Add DA (if applicable)
Enter your monthly Dearness Allowance — only if it forms part of retirement benefits.
Enter HRA & Rent
Input your monthly HRA received and actual rent paid.
Real-World Example
Consider a salaried employee in Jaipur (non-metro) with the following monthly figures:
- Basic Salary: ₹50,000
- DA: ₹0
- HRA Received: ₹20,000
- Rent Paid: ₹20,000
Now applying the three rules annually:
- Rule 1: HRA Received = ₹20,000 × 12 = ₹2,40,000
- Rule 2: Rent − 10% of Basic = (₹20,000 − ₹5,000) × 12 = ₹1,80,000
- Rule 3: 40% of Basic (Non-Metro) = ₹50,000 × 40% × 12 = ₹2,40,000
- HRA Exemption (Least): ₹1,80,000 annually, or ₹15,000/month
The remaining HRA (₹60,000) becomes taxable as part of your salary income. At a 30% tax slab, the HRA exemption saves you approximately ₹56,160 in taxes (including 4% cess).
Documents Required to Claim HRA Exemption
- Rent Receipts: Signed rent receipts from your landlord for each month
- Rent Agreement: Valid rental agreement (commonly asked by employers, especially for higher rent)
- Landlord's PAN: Mandatory if annual rent exceeds ₹1,00,000
- Bank Statements: Proof of rent payment via bank transfer (strongly recommended, avoids tax scrutiny)
- HRA Certificate: From your employer, showing HRA component of your salary
Key Rules About HRA Exemption
- Only in Old Regime: HRA exemption is NOT available under the New Tax Regime.
- Metro classification: 8 cities qualify from FY 2026-27 — Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad.
- Rent to Family: You can pay rent to parents and claim HRA — but not to your spouse. From FY 2026-27, you must also disclose your relationship with the landlord to your employer.
- Own House: Cannot claim HRA exemption if you live in your own house.
- Home Loan + HRA: You CAN claim both HRA and home loan deductions if you own a house elsewhere and rent in the city you work in.
- 10% of Basic Rule: The first 10% of your Basic+DA is considered your own contribution and is not exempt.
Common Mistakes When Claiming HRA
- Using wrong city category: Applying the wrong city category. Bengaluru, Hyderabad, Pune and Ahmedabad are metro only from FY 2026-27; for FY 2025-26 they are non-metro.
- Fake rent receipts: Submitting fraudulent rent receipts can lead to penalties and even prosecution.
- Missing landlord PAN: If rent > ₹1 Lakh/year, PAN is mandatory. Missing it can cause your claim to be disallowed.
- Not paying rent via bank: Cash payments are generally harder to prove during scrutiny, so bank transfers are advisable.
- Claiming HRA with no actual rent: If you own the house you live in, HRA cannot be claimed.
- Claiming HRA in New Regime: HRA exemption is only available in the Old Tax Regime.
HRA vs Home Loan — Can You Claim Both?
Yes! If you own a house in one city but live on rent in another (due to work), you can claim:
- HRA Exemption on your rental payments (Section 10(13A))
- Home Loan Interest deduction up to ₹2 Lakh (Section 24b)
- Home Loan Principal repayment under Section 80C (up to ₹1.5 Lakh)
This is one of the most tax-efficient combinations available to salaried individuals.
Best Practices to Maximize HRA Exemption
- Structure your salary so HRA component is at least 40-50% of Basic.
- Pay rent through bank transfer to create a clean paper trail.
- Collect PAN of landlord in advance if rent exceeds ₹1 Lakh annually.
- Keep signed rent receipts for every month (a revenue stamp is generally advisable for cash payments).
- Renew rent agreement every 11 months to keep documentation clean.
- Use Old Regime if your total deductions (HRA + 80C + 80D + Home Loan) are high.