Section 10(13A) | FY 2025-26

HRA Exemption Calculator

Calculate your exact tax-exempt House Rent Allowance using the official 3-condition minimum formula.

Your HRA details

Monthly figures, annualised automatically

₹40,000
₹
₹

Include only if DA forms part of retirement benefits

₹20,000
₹
₹25,000
₹

Metro: Delhi, Mumbai, Kolkata, Chennai

Updates live as you type

How HRA Exemption Works Under Section 10(13A)

House Rent Allowance (HRA) is a common component of salaried income in India. While the full HRA amount appears in your salary slip, not all of it is taxable. Section 10(13A) of the Income Tax Act allows a partial exemption, and the formula is simple in theory but tricky to compute manually because you must take the minimum of three separate conditions.

Our HRA exemption calculator applies the exact formula used by employers and tax authorities. Enter your monthly basic salary, HRA received, rent paid, and whether you live in a metro or non-metro city. The tool instantly shows all three conditions, highlights which one limits your exemption, and calculates your taxable HRA.

The HRA Exemption Formula

HRA Exemption = Minimum of:

A = Actual HRA received from employer

B = Rent paid - 10% of (Basic salary + DA)

C = 50% of (Basic + DA) for Metro | 40% for Non-Metro

Metro vs Non-Metro Cities for HRA

CategoryCitiesCondition C Rate
Metro (FY 2025-26)Delhi, Mumbai, Kolkata, Chennai50% of Basic + DA
Non-MetroAll other cities including Bengaluru, Hyderabad, Pune, Ahmedabad40% of Basic + DA

Worked Example: Metro City

InputValue
Monthly Basic Salary₹40,000
Monthly HRA₹20,000
Monthly Rent₹25,000
A: Actual HRA (annual)₹2,40,000
B: Rent minus 10% Basic (annual)₹2,52,000
C: 50% Basic (annual)₹2,40,000
Exempt HRA (minimum)₹2,40,000
Taxable HRA₹0

Documents Required for HRA Claim

  • Rent receipts for each month (or a consolidated receipt)
  • Rental agreement with landlord
  • Landlord's PAN if annual rent exceeds ₹1,00,000
  • Form 12BB submitted to employer with HRA details

After calculating your HRA exemption, use our Old vs New Tax Regime Calculator to see whether claiming HRA makes the old regime more beneficial for your overall tax liability.

Frequently Asked Questions

Common questions about hra calculator

HRA exemption under Section 10(13A) is the minimum of three values: (1) actual HRA received from your employer, (2) rent paid minus 10% of basic salary plus DA, and (3) 50% of basic salary plus DA for metro cities or 40% for non-metro cities. The lowest of these three is your tax-exempt HRA amount.
For FY 2025-26, only four cities qualify as metro for HRA purposes: Delhi (including NCR), Mumbai, Kolkata, and Chennai. Bengaluru, Hyderabad, Pune, Ahmedabad, and all other cities are treated as non-metro (40% rule). Note: from FY 2026-27, Bengaluru, Hyderabad, Pune, and Ahmedabad will also qualify as metro cities.
No. HRA exemption is only available under the old tax regime. If you opt for the new tax regime under Section 115BAC, you cannot claim HRA, 80C, 80D, or home loan deductions. Compare both regimes using our Old vs New Tax Regime Calculator.
If your annual rent paid is less than or equal to 10% of your basic salary plus DA, Condition B (rent minus 10% of salary) becomes zero or negative and is treated as zero. In such cases, your HRA exemption may be limited to Condition A (actual HRA) or Condition C (50%/40% of salary), whichever is lower.
Yes, if your annual rent exceeds ₹1,00,000, your employer typically requires your landlord's PAN to process HRA exemption in your Form 16 and TDS calculations. Keep rent receipts and the rental agreement as supporting documents.
Yes, you can claim HRA if you pay rent to your parents and they declare it as rental income in their ITR. However, rent paid to your spouse is not accepted for HRA exemption. You need a valid rental agreement and rent receipts.
Yes, if your Dearness Allowance forms part of retirement benefits, it is included along with basic salary for calculating the 10% threshold and the 50%/40% limit. Enter your monthly DA in the calculator if applicable.
Taxable HRA is the portion of HRA received that exceeds the exempt amount. Formula: Taxable HRA = Actual HRA Received - HRA Exemption. This amount is added to your taxable salary under the old regime.
Yes, under the old tax regime you can claim both HRA exemption (if you pay rent) and home loan interest deduction under Section 24(b) up to ₹2 lakh, provided you satisfy the conditions for each. However, if you own the house you live in, you cannot claim HRA for that property.
Tax saved depends on your income tax slab. If you are in the 30% slab, every ₹1 lakh of HRA exemption saves approximately ₹31,200 (30% tax + 4% cess). Use our Old vs New Tax Regime Calculator to see the full impact on your total tax liability.