Tax

HRA Exemption

How much of the HRA on your payslip is exempt under section 10(13A), and which of the three rules caps it

About the HRA Exemption calculator

Calculate the House Rent Allowance exemption you can claim under Section 10(13A). The exemption is the least of three figures - this works out all three and shows which one binds.

Statutory rates and limits on this page are current for FY 2026-27 (AY 2027-28) and are unchanged from FY 2025-26, so the same figures apply whether you are filing last year’s return or planning this year. Last verified 23 August 2026.

How the maths works

Section 10(13A) - least of three

Exempt HRA = minimum of (a) actual HRA received, (b) rent paid - 10% of salary, (c) 50% of salary in a metro or 40% elsewhere

Salary

Basic salary + dearness allowance (where it counts towards retirement benefits) + commission on turnover. Not gross CTC.

Actual HRA

The HRA line on your payslip for the period

Rent paid

Rent actually paid for the same period - the receipts must support it

Metro

Delhi, Mumbai, Kolkata and Chennai only. No other city qualifies, whatever its size.

Taxable HRA

HRA received minus the exempt amount, added to your taxable income

A worked example

Salaried employee renting in Bengaluru

The three limbs are ₹3,60,000, ₹2,10,000 and ₹3,60,000. The exemption is ₹2,10,000 - the rent-minus-10% limb binds - leaving ₹1,50,000 of HRA taxable. Available under the old regime only.

How to use it

1. Enter your basic salary and dearness allowance for the period
2. Enter the HRA component your employer actually pays
3. Enter the rent you actually pay
4. Select whether the city is one of the four metros
5. Read the exempt amount, the binding limb, and the taxable balance

What it accounts for

• Works out all three limbs and names the one that binds
• Handles metro and non-metro rates correctly
• Supports part-year periods when rent or salary changed mid-year
• Shows the taxable remainder, not just the exemption
• Flags the ₹1,00,000 annual threshold above which the landlord's PAN is required

Why it is worth working out

• Shows immediately whether your rent is high enough to use the full HRA
• Explains why a raise sometimes reduces the exemption
• Helps decide whether HRA makes the old regime worth keeping
• Prevents the common error of using gross salary instead of basic + DA

Questions people ask

How is HRA exemption calculated?

It is the least of three amounts: the HRA you actually received, the rent you paid minus 10% of salary, and 50% of salary in a metro or 40% elsewhere. "Salary" here means basic plus dearness allowance plus commission on turnover — not your gross CTC.

Which cities count as metros?

Only Delhi, Mumbai, Kolkata and Chennai. Bengaluru, Hyderabad, Pune and Gurugram are all non-metro for this purpose and attract the 40% limit, whatever their rents look like.

Can I claim HRA and a home loan at the same time?

Yes, if the facts support it — for instance you own a house in one city and rent in another for work, or your own property is genuinely let out. Claiming HRA while living in a property you own in the same city will not survive scrutiny.

Do I need my landlord's PAN?

If your annual rent exceeds ₹1,00,000 you must report the landlord's PAN to your employer. Without it the exemption is generally disallowed. Rent paid to a parent is allowed, but the parent must actually own the property and declare the rent as income.

Is HRA exemption available under the new regime?

No. Section 10(13A) is one of the exemptions the new regime removes. If your HRA exemption is large, that alone can be the reason the old regime still wins for you.

This calculator is for information and education. It is not financial advice — see the disclaimer.