Calculate the tax-exempt portion of your House Rent Allowance under Section 10(13A), using the current 8-city metro list.
Based on FY2026-27 rules · Last updated
HRA exemption is the lowest of three amounts — the actual HRA you receive, a percentage of your salary based on your city, and your rent minus 10% of your salary. Most people don't realise all three have to be checked, not just the obvious one.
This calculator uses the current FY2026-27 metro city list — eight cities at 50%, expanded from the earlier four-city list — so the exemption it shows reflects the latest rule, not an outdated one.
Your HRA Exemption
₹2,40,000 / year
Taxable HRA: ₹0 per year
% of HRA Exempt
100%
City Rate
50%
HRA exemption is the lowest of three amounts: the actual HRA you receive, 50% of your Basic + DA (metro city), and your rent paid minus 10% of your Basic + DA. Whichever of the three is smallest is exempt — the rest of your HRA is taxable.
Note: HRA exemption is only available under the Old Tax Regime. This calculator estimates the exemption based on Section 10(13A) — for a full tax picture including this exemption, use the Income Tax Calculator.
Example: Basic + DA of ₹6,00,000 a year, HRA received of ₹3,00,000 and rent paid of ₹2,40,000 in a metro city. The three tests give ₹3,00,000, ₹3,00,000 and ₹1,80,000, so ₹1,80,000 is exempt and ₹1,20,000 is added to taxable income.
| Test | Amount (₹) |
|---|---|
| Actual HRA received | 3,00,000 |
| 50% of Basic + DA (metro) | 3,00,000 |
| Rent paid − 10% of Basic + DA | 1,80,000 |
| Exempt HRA (lowest of the three) | 1,80,000 |
| Taxable HRA | 1,20,000 |
For FY2026-27, eight cities qualify for the 50% metro rate: Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad. This list was expanded from the earlier four cities (Delhi, Mumbai, Chennai, Kolkata) under the Income-Tax Rules, 2026. All other cities use the 40% non-metro rate.
No. If you own your home or don't pay rent, you can't claim any HRA exemption — the entire HRA amount you receive becomes fully taxable.
The exempt HRA is the lowest of three amounts: (1) the actual HRA you receive, (2) rent paid minus 10% of your Basic salary plus Dearness Allowance, and (3) 50% of Basic plus DA if you live in a metro city, or 40% if you do not. Whatever is not exempt is added to your taxable income. This calculator works out all three and shows which one applies.
No. The HRA exemption is available only under the old tax regime. If you choose the new regime, the full HRA you receive is taxable, so HRA only helps your tax if you opt for the old regime and pay rent. Compare both regimes in the Income Tax Calculator before deciding.
Learn more: New Tax Regime
Your employer will usually ask for rent receipts or a rent agreement, and your landlord's PAN if your annual rent is more than ₹1 lakh. If you pay rent to a family member such as a parent, the rent must be real, paid by bank transfer, and declared by the recipient as income. Keep the records, as they may be requested during a tax assessment.
Learn more: Form 12BB
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