How is HRA exemption calculated?

HRA exemption is the minimum of: actual HRA received, 50% or 40% of basic+DA based on city, and rent paid minus 10% of basic+DA.

What if I do not receive HRA from employer?

You can claim Section 80GG deduction up to Rs 60,000 per year if you pay rent but do not receive HRA.

HRA Exemption Calculator India FY 2026-27

Q: Can I claim HRA if I pay rent to my parents?

Yes, you can pay rent to parents and claim HRA exemption with a proper rent agreement. Parents must declare rental income in their ITR.

Q: Is Bangalore a metro city for HRA?

No. Only Mumbai, Delhi, Kolkata and Chennai are metro cities for HRA. Bangalore is non-metro at 40%.

Q: Can I claim both HRA and home loan interest?

Yes, if your rented house and owned property are in different cities, both HRA exemption and home loan interest deduction can be claimed together.

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💼 Salary Details (Annual)

Basic Salary (₹ per year)Fixed basic component of your CTC

Dearness Allowance – DA (₹ per year)Enter 0 if not applicable (most private sector)

HRA Received (₹ per year)HRA component in your salary slip

🏠 Rent & City Details

Actual Rent Paid (₹ per year)Total rent paid in the financial year

City Type

🏙️ Metro

🏘️ Non-Metro

Metro cities: Mumbai, Delhi, Kolkata, Chennai (50% of Basic+DA exempt). All others are Non-Metro (40%).

HRA Exemption

Tax-Free Amount

Taxable HRA

Monthly Saving

📐 HRA Exemption — Minimum of 3 Rules (Section 10(13A))

Rule 1 — Actual HRA Received

Rule 2 — 50%/40% of (Basic + DA)

Rule 3 — Rent Paid minus 10% of (Basic + DA)

✅ HRA Exemption (Minimum of Above)

Component	Amount
Basic + DA (Annual)
HRA Received (Annual)
Actual Rent Paid (Annual)
HRA Exemption
Taxable HRA
Monthly HRA Exemption

🏠 HRA Exemption Calculator India FY 2026-27

Use this free HRA Exemption Calculator to find out exactly how much of your House Rent Allowance is tax-free under Section 10(13A) of the Income Tax Act for FY 2026-27. Simply enter your basic salary, DA, HRA received, rent paid and city type to get your exact exemption instantly.

📐 How HRA Exemption is Calculated — The 3-Rule Formula

HRA exemption is the minimum of the following three amounts:

Rule 1: Actual HRA received from employer
Rule 2: 50% of (Basic + DA) for Metro cities | 40% for Non-Metro cities
Rule 3: Actual Rent Paid − 10% of (Basic + DA)

The lowest of the three values is your HRA exemption. The remaining HRA is added to your taxable income.

🏙️ Metro vs Non-Metro HRA Rate (FY 2026-27)

Metro Cities (50%): Mumbai, Delhi, Kolkata, Chennai
Non-Metro Cities (40%): Bangalore, Hyderabad, Pune, Ahmedabad, and all others

Note: Only the original 4 metros qualify for 50% — cities like Bangalore and Pune are non-metro for HRA purposes despite being large cities.

💡 HRA Rules Under New Tax Regime (FY 2026-27)

HRA exemption under Section 10(13A) is available only under the Old Tax Regime. If you opt for the New Tax Regime, HRA received is fully taxable. This is one of the key reasons salaried employees paying high rent often benefit from the Old Regime.

📌 Key HRA Rules to Remember

✔ You must be a salaried employee — self-employed cannot claim HRA under Sec 10(13A)
✔ You must actually pay rent — HRA for a house you own is fully taxable
✔ Rent paid to parents is allowed — but must be genuine with rent agreement
✔ If annual rent exceeds ₹1 lakh, PAN of landlord is mandatory
✔ If rent exceeds ₹50,000/month, TDS at 5% must be deducted from rent
✔ DA is included only if it forms part of salary for retirement benefits

🧮 HRA Exemption Example (FY 2026-27)

Basic Salary: ₹6,00,000/year | DA: ₹0
HRA Received: ₹2,40,000/year
Rent Paid: ₹1,80,000/year | City: Bangalore (Non-Metro)

Rule 1: ₹2,40,000 | Rule 2: 40% × ₹6,00,000 = ₹2,40,000 | Rule 3: ₹1,80,000 − 10% × ₹6,00,000 = ₹1,80,000 − ₹60,000 = ₹1,20,000

HRA Exemption = Minimum = ₹1,20,000 | Taxable HRA = ₹2,40,000 − ₹1,20,000 = ₹1,20,000

❓ Frequently Asked Questions — HRA Calculator India

1. Can I claim HRA if I pay rent to my parents?

Yes, you can pay rent to parents and claim HRA exemption. However, the arrangement must be genuine — you need a proper rent agreement and your parents must declare that rental income in their ITR.

2. Is HRA exemption available under the New Tax Regime?

No. HRA exemption under Section 10(13A) is only available under the Old Tax Regime. Under the New Regime, the full HRA received is part of taxable income.

3. What if I don't receive HRA from my employer?

If you don't receive HRA but pay rent, you can claim deduction under Section 80GG (up to ₹60,000/year) under the Old Regime.

4. Is Bangalore a metro city for HRA purposes?

No. For HRA calculation, only Mumbai, Delhi, Kolkata, and Chennai are metro cities (50% rate). Bangalore, Hyderabad, Pune and all other cities are non-metro (40% rate).

5. What documents do I need to claim HRA?

Rent receipts (monthly), rent agreement, and PAN of landlord if annual rent exceeds ₹1 lakh. Your employer will ask for these during investment declaration.

6. Can I claim both HRA and home loan interest?

Yes, if your office and owned property are in different cities, you can claim both HRA exemption and home loan interest deduction simultaneously.

7. How much HRA is tax-free for ₹50,000 basic salary per month?

For ₹50,000/month basic in a non-metro city paying ₹20,000/month rent: Rule 1 = HRA received, Rule 2 = ₹2,40,000 (40% of ₹6L), Rule 3 = ₹2,40,000 − ₹60,000 = ₹1,80,000. Exemption = minimum of the three values.

8. What is Section 80GG for those without HRA?

If your salary has no HRA component and you pay rent, Section 80GG allows a deduction of the least of: ₹5,000/month, 25% of total income, or rent paid minus 10% of income. Maximum deduction is ₹60,000/year.

👉 This calculator applies Section 10(13A) rules for FY 2026-27. HRA exemption is available only under the Old Tax Regime. For complex situations, consult a CA. Last updated: April 2026.