HRA Exemption Calculator
See exactly how much of your House Rent Allowance is exempt under Section 10(13A) — every value of the least-of-three rule shown step by step, with the correct metro list for both FY 2026-27 and FY 2025-26.
Estimate only — verify with a CA
Tax rules change every budget and personal situations differ. Figures on this page are indicative estimates for planning, not tax advice. Always confirm your final numbers with a chartered accountant or the income-tax department before filing.Your monthly figures
Metro list changed from 1-Apr-2026 (Income-tax Rules, 2026).
Metro city — the 50% rule applies.
Metro cities: FY 2025-26 → Delhi, Mumbai, Kolkata, Chennai. From FY 2026-27 → also Bengaluru, Hyderabad, Pune and Ahmedabad. NCR satellites (Faridabad, Ghaziabad, Gurugram, Noida) are non-metro at 40% in every year.
Per month, as per your offer letter or payslip.
Only if DA forms part of your salary terms.
The HRA component in your monthly pay slip.
Actual rent per month to your landlord.
About
How much HRA escapes tax? It depends on three numbers
HRA looks like free money, but the exemption is deliberately capped by three independent tests: what you actually received, what you actually paid relative to your salary, and a hard percentage limit tied to whether your city is a metro. Whichever test produces the smallest number wins, and the rest of your HRA quietly becomes part of your taxable salary. Most people discover at proof-submission time that clause (b) — rent minus 10% of basic — was the binding constraint all along, especially if their rent is modest relative to their pay.
The metro list is one input that genuinely changed recently: for FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai counted as metros (50% of salary). From FY 2026-27, the Income-tax Rules, 2026 added Bengaluru, Hyderabad, Pune and Ahmedabad to that list. Meanwhile Faridabad, Ghaziabad, Gurugram and Noida remain non-metro at 40% in every year — a distinction many online calculators still get wrong. Pick your financial year and city correctly; it can move your exemption by a full 10% of salary.
This calculator lays out all three values with their formulas filled in with your actual numbers, marks the winner, and separates exempt from taxable HRA. As always on TaxDoc India, the computation happens entirely in your browser — your salary details are never sent anywhere.
How to
How to use the HRA calculator
- 1Pick your financial year (FY 2026-27 or FY 2025-26) — the metro list differs between them.
- 2Select your city — metros (50%) and non-metros (40%) are handled automatically.
- 3Enter your monthly basic salary; add DA only if it forms part of your salary.
- 4Enter the monthly HRA component shown on your payslip.
- 5Enter the rent you actually pay each month.
- 6Compare the three values — the lowest one, highlighted in violet, is your exemption.
- 7Use the taxable-HRA figure to sanity-check the Form 16 projection your employer gives you.
FAQ
Frequently asked questions
What is the 'least of three' rule for HRA exemption?
Section 10(13A) exempts the least of: (a) actual HRA received, (b) rent paid minus 10% of salary (basic + DA), or (c) 50% of salary in metros / 40% elsewhere. The calculator shows all three values side by side and highlights which one sets your exemption.
Which cities count as metro cities now?
For FY 2025-26, only Delhi, Mumbai, Kolkata and Chennai counted. From FY 2026-27 (effective 1-Apr-2026), the Income-tax Rules, 2026 added Bengaluru, Hyderabad, Pune and Ahmedabad to the metro list at 50%. Faridabad, Ghaziabad, Gurugram and Noida are NOT metros for this rule in any year — they stay at 40%. The calculator lets you pick your financial year so both lists are handled correctly.
What happens if I pay rent but don't receive any HRA?
Then this section doesn't apply to you. Salaried employees without HRA in their pay structure can instead claim a deduction under Section 80GG (subject to its own least-of conditions and an annual cap). This calculator models the 10(13A) exemption, not 80GG.
Can I claim HRA if I pay rent to my parents?
Yes — paying genuine rent to parents is allowed. You should actually pay them (bank transfer is best evidence), get receipts, and they must declare that rent as income in their own return. The arrangement must be real; fabricated rent-to-parent claims are a common scrutiny trigger.
Why does my employer need my landlord's PAN?
When annual rent exceeds ₹1,00,000, reporting the landlord's PAN to the employer becomes mandatory. The employer reports it while allowing the exemption. Our companion Rent Receipt Generator warns you automatically when you cross this threshold.
Is DA included in salary for the HRA calculation?
Dearness allowance counts when it forms part of salary for retirement benefits under your terms of employment. Most private-sector employees have no DA, so the field is optional here; government employees typically include it.
Is the exemption computed monthly or annually?
The law works on annual figures, and so does this tool — it multiplies your monthly inputs by twelve before applying the rule. Some employers compute per-month exemptions, which can produce slightly different results; your final figure gets trued up in your Form 16.
Can I claim both HRA exemption and a home-loan interest deduction?
Yes, in specific situations — for example you own a house in one city (loan running on it) and rent accommodation in another city for work, or your own house is rented out while you live on rent elsewhere. Both claims together attract scrutiny, so keep clear documentation of why you pay rent.
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