HRA Exemption Calculator
Calculate how much House Rent Allowance is tax-exempt under Section 10(13A). Updated for FY 2025-26.
Salary & Rent Details
Enter 0 if DA is not part of your salary.
Metro = 50% of Basic+DA; Non-Metro = 40%.
Results
Enter your salary and rent details, then click Calculate.
Deep Dive: Section 10(13A) & HRA
1. The "Least of Three" Rule
Under Section 10(13A) of the Income Tax Act, the exemption for House Rent Allowance is the lowest of the following three amounts:
- Actual HRA Received: The specific allowance component in your salary slip.
- Rent Paid minus 10% of Salary: Total rent paid minus 10% of (Basic Salary + Dearness Allowance).
- City Limit: 50% of (Basic Salary + DA) for Metro cities (Delhi, Mumbai, Kolkata, Chennai), or 40% for Non-Metro cities.
Common Mistake: Confusing Bangalore or Hyderabad as "Metros" for HRA. Tax laws currently classify them as Non-Metros (40% limit).
2. Old vs New Tax Regime (2026 Update)
With the New Tax Regime becoming the default option for FY 2025-26, claiming HRA requires a specific choice:
New Tax Regime
HRA exemption is NOT allowed. Your entire HRA becomes fully taxable, but tax rates are lower overall.
Old Tax Regime
HRA exemption is fully available. Best for individuals paying high rent or having home loans.
3. Dual Benefit: HRA & Home Loan
You can claim both HRA exemption AND Home Loan Interest deduction (Section 24b) concurrently, provided you own a house and pay EMIs, but live in a rented accommodation in the same or a different city due to employment reasons.
HRA Claim Checklist
Rent Agreement
Ensure you have a formally drafted rent agreement, signed by both parties, with the exact rent amount specified.
Rent Receipts
Collect monthly rent receipts. They must specify the date, amount, property address, and landlord's signature.
Landlord’s PAN
If your annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer to claim HRA.
Bank Transfers
Always pay rent via NEFT, RTGS, or UPI. Avoid cash payments, as digital trails are required during IT scrutiny.
Renting from Parents
You can claim HRA if you pay rent to your parents. Ensure you transfer the amount and they show it as rental income in their ITR.