Metro cities: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Pune, Hyderabad, Ahmedabad
✓ Binding limit — the minimum of the three. Annual figures shown.
HRA Calculator 2026 — Calculate HRA Exemption & Tax Benefit
How to Use the HRA Calculator
Enter your monthly Basic Salary, Dearness Allowance (DA), the HRA received from your employer, and the actual rent you pay. Select Metro or Non-Metro based on your city. The calculator shows the exempt HRA (tax-free) and taxable HRA, along with the three statutory limits.
HRA Exemption Formula
HRA exemption = Minimum of these three amounts:
- Actual HRA received from employer
- 50% of (Basic + DA) for metro cities / 40% for non-metro cities
- Actual rent paid minus 10% of (Basic + DA)
The smallest of the three values is your tax-exempt HRA. The rest is taxable as salary.
Common Use Cases
- Determining how much HRA to declare in your ITR under Old Regime
- Comparing metro vs non-metro HRA benefit before relocating
- Optimising rent payments to maximise HRA exemption
- HR teams calculating employee tax-exempt HRA components
Frequently Asked Questions
Q: What is HRA exemption?
A: HRA (House Rent Allowance) exemption is a tax benefit available to salaried employees who live in rented accommodation. A portion of the HRA received from the employer is exempt from income tax, subject to the minimum of three limits defined under Section 10(13A) of the Income Tax Act. The exempt amount reduces your taxable income.
Q: Is HRA exemption available under the New Tax Regime?
A: No. HRA exemption under Section 10(13A) is not available if you opt for the new tax regime (default from FY 2023-24). HRA exemption is only applicable under the old tax regime, where you can claim deductions under 80C, 80D, and other sections. If HRA exemption is a significant benefit for you, it may be worth comparing regimes carefully.
Q: Which cities are considered metro for HRA calculation?
A: As per the Income Tax Act, the metro cities where 50% of Basic+DA applies are: Delhi, Mumbai, Kolkata, Chennai, Bengaluru (Bangalore), Pune, Hyderabad, and Ahmedabad. For all other cities, the limit is 40% of Basic+DA. This classification has been updated effective April 2026 to include Bengaluru, Pune, Hyderabad and Ahmedabad.
Q: What if I pay rent but do not receive HRA from my employer?
A: If you don't receive HRA but pay rent, you can claim deduction under Section 80GG (not 10(13A)), subject to a maximum of ₹5,000 per month or 25% of total income, whichever is lower. This is only available under the old regime and requires that neither you nor your spouse owns a house in the city where you live.
Q: How to calculate HRA exemption manually?
A: Step 1: Note your monthly Basic + DA, HRA received, and rent paid. Step 2: Calculate all three limits: (a) Annual HRA received, (b) 50%/40% × Annual (Basic+DA), (c) Annual rent − 10% × Annual (Basic+DA). Step 3: Take the minimum. Multiply monthly values by 12 to get annual figures. This calculator does all three steps for you instantly.
Last updated: June 2026 · HRA rules as per Section 10(13A) of the Income Tax Act · Old Regime only.