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HRA Calculator India (2026)

Calculate HRA exemption under Section 10(13A) — metro vs non-metro, old vs new regime.

Section 10(13A) — Old Tax Regime only

Salary & Rent Details

₹50,000
₹10,000₹3,00,000
₹0 (Most private sector)
₹0₹1,00,000
₹20,000
₹0₹1,50,000
₹15,000
₹0₹2,00,000
Your Income Tax Slab
Annual HRA Received₹2,40,000
HRA Exempted (least of 3 components)₹1,20,000
Taxable HRA₹1,20,000
Tax Saved @ 20% slab₹24,000/yr
Tax Saved @ 30% slab₹36,000/yr

HRA Exemption Breakdown — 3 Components

The lowest of the three is your exempt amount

1. Actual HRA received₹2,40,000
2. Rent paid − 10% of Basic+DALEAST ✓₹1,20,000
3. 50% of Basic+DA (metro)₹3,00,000

Your estimated tax saving (30% slab)

₹36,000/year

Based on HRA exempt amount of ₹1,20,000 × 30%

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Old Tax Regime Only

HRA exemption under Section 10(13A) is available only if you opt for the old tax regime. Under the new tax regime, HRA is fully taxable. Consult a tax advisor for personalised advice.

How is HRA Exemption Calculated? The Three-Component Formula

HRA exemption under Section 10(13A) is the minimum of these three amounts:

ComponentFormulaIn Our Example
1. Actual HRA receivedAs per salary slip₹20,000/month = ₹2,40,000/year
2. Rent paid minus 10% of Basic+DAMonthly rent − (10% × Basic+DA) × 12(₹15,000 − ₹5,000) × 12 = ₹1,20,000
3. % of Basic+DA50% for metro, 40% for non-metro₹50,000 × 50% × 12 = ₹3,00,000
HRA ExemptLeast of above three ✓₹1,20,000
The exempt amount (₹1,20,000 in this example) is deducted from your total taxable income. At the 30% tax bracket, this saves ₹36,000 in annual income tax.

HRA Calculation Example — Step by Step (Priya, Mumbai)

Priya works in Mumbai (metro city) with these salary components: Basic ₹60,000/month | HRA ₹24,000/month | Rent paid ₹20,000/month

Step 1 — Component 1

Actual HRA received

₹24,000 × 12 = ₹2,88,000

Step 2 — Component 2

Rent paid − 10% of Basic

(₹20,000 − ₹6,000) × 12 = ₹1,68,000

Step 3 — Component 3

50% of Basic (Mumbai is metro)

₹60,000 × 50% × 12 = ₹3,60,000

Step 4 — Least of three

HRA Exempt amount

₹1,68,000 ✓

Taxable HRA

₹2,88,000 − ₹1,68,000 = ₹1,20,000

Tax saved @ 30% slab

₹1,68,000 × 30% = ₹50,400/year

Which Cities Are Metro for HRA Calculation?

City TypeCitiesHRA % of Basic+DA
MetroDelhi, Mumbai (incl. Navi Mumbai & Thane), Kolkata, Chennai50%
Non-MetroBengaluru, Hyderabad, Pune, Ahmedabad, Jaipur, Surat, all other cities40%
Important: Despite being major cities, Bengaluru and Hyderabad are classified as non-metro for HRA purposes. Many employees in these cities incorrectly claim the 50% limit and face issues during ITR filing. Use the 40% limit if you live in these cities.

HRA Under Old vs New Tax Regime (2026)

FeatureOld Tax RegimeNew Tax Regime
HRA exemptionYes — Section 10(13A)No — HRA fully taxable
Standard deduction₹50,000₹75,000 (Budget 2024)
Tax slabsHigher ratesLower rates
Best forHigh HRA + 80C + 80DLow deductions, simpler filing

If you pay significant rent and receive HRA, the old tax regime is almost always better.

Rule of thumb: If HRA exemption + other deductions (80C, 80D, home loan interest) exceed ₹3.75 lakh/year, the old regime likely saves you more tax.

How to Claim HRA Exemption — Form 12BB and Rent Receipts

To claim HRA exemption from your employer's TDS calculation, submit Form 12BB — a declaration form specifying your rent paid, landlord's name, and landlord's PAN (if annual rent exceeds ₹1 lakh). Submit at the start of each financial year (April) or when rent changes.

If annual rent > ₹1,00,000 (₹8,333+/month)

Your landlord's PAN is mandatory. Without it, your employer cannot apply the full HRA exemption in TDS — you will need to claim it yourself during ITR filing.

Documents needed:

  • •Rent receipts (monthly, signed by landlord)
  • •Rent agreement (recommended)
  • •Landlord's PAN card if rent > ₹1 lakh/year
  • •Form 12BB (submit to HR/payroll)

Don't Receive HRA? Claim Rent Deduction Under Section 80GG

If your salary does not include an HRA component — common for self-employed individuals, freelancers, and some small company employees — you can still claim a deduction for rent paid under Section 80GG.

Section 80GG deduction is the minimum of:

  • 1.₹5,000 per month (₹60,000/year)
  • 2.25% of total income
  • 3.Actual rent paid minus 10% of total income

Section 80GG is only available under the old tax regime and only if neither you, your spouse, nor your minor child owns a residential property in the city where you work.

Frequently Asked Questions — HRA Calculator

What is the HRA exemption limit in India for 2026?
There is no fixed rupee limit — it depends on your salary. The exempt amount is the minimum of: actual HRA received, rent paid minus 10% of Basic+DA, and 50% of Basic+DA for metro cities (40% for non-metro). Use the calculator above to find your exact exempt amount.
Is HRA available under the new tax regime?
No. HRA exemption under Section 10(13A) is only available under the old tax regime. If you opt for the new tax regime, your entire HRA component becomes part of taxable salary. You must compare both regimes to decide which saves you more tax overall.
What is the HRA limit for metro cities vs non-metro cities?
For metro cities (Delhi, Mumbai, Kolkata, Chennai), the HRA cap is 50% of Basic+DA. For non-metro cities (including Bengaluru, Hyderabad, Pune, Ahmedabad), the cap is 40% of Basic+DA. Bengaluru and Hyderabad — despite being large cities — are classified as non-metro for HRA purposes.
Do I need landlord's PAN for HRA claim?
Yes, if your annual rent exceeds ₹1,00,000 (₹8,333+ per month), you must provide your landlord's PAN to your employer. If the landlord does not have a PAN, they must provide a declaration. Without this, claim the HRA exemption yourself when filing your ITR.
Can I claim HRA if I live in my own house?
No. HRA exemption is specifically for employees paying rent for accommodation. If you own the house you live in, no HRA exemption is applicable — even if HRA is part of your salary package. In that case, HRA received is fully taxable.

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Content by Satyapal Khakhal, Founder, gpaisa.in | Updated: May 2026