HRA Exemption Calculator: Maximum Tax-Free Allowance

Calculate your tax-exempt House Rent Allowance (HRA) (old Section 10(13A); Income-tax Act 2025 from FY 2026-27). Available to salaried tenants under the Old Regime only.

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HRA (House Rent Allowance) is paid by employers to salaried employees living in rented accommodation. Under the Income-tax Act 2025 (old Section 10(13A)), a portion of the HRA is tax-exempt. HRA exemption is NOT available in the New Regime — it applies only under the Old Regime.

Illustration only — not tax advice. Tax depends on your full income, the regime you choose and the law in force; please consult a Chartered Accountant (CA) before acting on it.

HRA Exemption Formula: Exempt = MINIMUM of three: - (a) Actual HRA received from employer (annual) - (b) 50% of basic salary in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad (Income-tax Rules, 2026, from 1 April 2026) OR 40% of basic (other cities) - (c) Actual rent paid MINUS 10% of basic salary

Enter your basic salary (annual), HRA received (annual), actual rent paid (annual), and city type (metro/non-metro) into this free HRA Calculator to instantly get: (1) Tax-exempt HRA, (2) Taxable HRA portion, (3) Annual tax savings at your slab rate.

Example: Mumbai-based employee, Basic Rs 6 lakh, HRA Rs 3 lakh, Rent Rs 2.5 lakh paid annually: - (a) Actual HRA = Rs 3,00,000 - (b) 50% of Basic = Rs 3,00,000 (Mumbai = metro) - (c) Rent - 10% Basic = 2,50,000 - 60,000 = Rs 1,90,000 - Min = Rs 1,90,000 (tax-exempt). Balance Rs 1,10,000 taxable.

Important documentation: - Rent receipts (monthly) if rent > Rs 3,000/month - PAN of landlord if annual rent > Rs 1 lakh (mandatory) - Rent agreement (recommended) - If staying with parents, you can pay rent to them (TDS not applicable, parent shows rental income in their ITR)

Rent paid to spouse: NOT allowed for HRA exemption. Rent to parents allowed if you're not co-owner of the property they own.

HRA + Home Loan Interest combination: Possible if both are genuine — e.g., you own a home in Mumbai but work in Delhi on rent. Both deductions can be claimed separately. Many "income tax notices" arise from this scenario — proper documentation is essential.

City classification for HRA: from FY 2026-27 the Income-tax Rules, 2026 give 50% of basic in eight cities — Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Every other city is 40%. (Until FY 2025-26 only Mumbai, Delhi, Kolkata and Chennai got 50%.) HRA exemption is available only in the old tax regime.

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Open HRA Exemption Calculator (Free) — Section 10(13A) Old Regime →

Frequently Asked Questions (FAQ)

Is HRA exemption available in the New Regime?
No. HRA exemption (old Section 10(13A); now under the Income-tax Act 2025 and Income-tax Rules 2026) is available only in the Old Regime. In the New Regime (default from FY 2026-27), HRA is fully taxable. If your HRA + 80C + Sec 24 deductions combined exceed Rs 4-5 lakh, the Old Regime may result in lower tax; compare both.
When are rent receipts required?
Monthly rent receipts are mandatory if the monthly rent exceeds Rs 3,000 (per IT Dept guidelines). Receipts must include the landlord's name, address, signature, rent amount, period, and a revenue stamp (Rs 1 for cash payments above Rs 5,000). Submit these to your employer along with Investment Declaration Form 12BB.
When is the landlord's PAN mandatory?
The landlord's PAN is mandatory when annual rent exceeds Rs 1 lakh (i.e., monthly rent above Rs 8,333). If the landlord's PAN is not provided, the employer may deny the HRA exemption. If the landlord refuses to share their PAN, you can submit a declaration (Form 60), but this may attract scrutiny from the IT Dept.
Can I pay rent to my parents to claim HRA?
Yes, you can pay rent to your parents — but the property must be in your parents' name (you cannot be a co-owner). Execute a rent agreement, transfer rent monthly via NEFT (strictly avoid cash payments above Rs 5,000), and maintain receipts. Your parents must show the rental income in their ITR.
Can self-employed individuals claim HRA?
No, HRA is available only to salaried employees (old Section 10(13A)). Self-employed individuals can claim Section 80GG (a similar deduction with different limits: minimum of (a) Rs 5,000/month, (b) 25% of total income, (c) rent minus 10% of income). The maximum benefit is usually lower.

City-wise availability

Free to use in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad (all 50%), Sirsa, and Mandi Dabwali. Seamless on both mobile and desktop. Download a branded PDF.

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