🇮🇳 India

HRA Calculator India — FY 2025-26

Calculate your HRA exemption under Section 10(13A) of the Income Tax Act. See all three components, find the taxable portion, and check Section 80GG if you don't receive HRA. Metro vs non-metro rules applied automatically.

Monthly basic pay from your salary slip
HRA component shown on your salary slip
Actual rent you pay to your landlord
Yes
50% of basic for metros, 40% for non-metros. Only these 4 cities qualify as metro.
DA amount if it forms part of retirement benefits
No
If yes, DA is added to basic salary for HRA calculation

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How to Use This Calculator

HRA Exemption tab

Enter your monthly basic salary, HRA received, and rent paid. Toggle whether you live in a metro city (Delhi, Mumbai, Chennai, or Kolkata). The calculator computes all three components under Section 10(13A) and shows the minimum — your HRA exemption. Expand "More options" to include Dearness Allowance if it forms part of retirement benefits.

Taxable HRA tab

See how much of your HRA is taxable as salary income after the exemption. The calculator estimates the tax impact at your marginal slab rate under the old tax regime. Useful for understanding the real cost of choosing between old and new tax regimes.

No HRA? Section 80GG tab

If you are self-employed or your employer does not provide an HRA component, you may claim a deduction under Section 80GG. Enter your total income and annual rent paid. The maximum deduction is ₹5,000/month (₹60,000/year). You must file Form 10BA and must not own residential property at your place of work.

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The Formula

HRA exemption under Section 10(13A) is the minimum of three components, calculated annually:

HRA Exemption = MINIMUM of:

(1) Actual HRA received from employer
(2) Rent paid − 10% of basic salary
(3) 50% of basic salary (metro) or 40% of basic salary (non-metro)

Basic salary = Basic pay + DA (if DA forms part of retirement benefits)

Metro cities: Delhi, Mumbai, Chennai, Kolkata only
(Bangalore, Hyderabad, Pune are NOT metro for HRA purposes)

Section 80GG (no HRA):
Deduction = MINIMUM of:
(1) ₹5,000/month (₹60,000/year)
(2) Rent paid − 10% of adjusted total income
(3) 25% of adjusted total income

Important: HRA exemption is available only under the old tax regime. If you opt for the new regime under Section 115BAC, the entire HRA is taxable. Also, you cannot claim both HRA exemption and Section 80GG deduction.

Example

Priya — Software engineer in Mumbai earning ₹50,000 basic + ₹20,000 HRA, paying ₹25,000 rent

Priya works in Mumbai (metro city), earns ₹50,000 basic salary per month, receives ₹20,000 HRA, and pays ₹25,000 monthly rent. She is on the old tax regime.

Step 1: Annual figures

Annual basic salary₹6,00,000
Annual HRA received₹2,40,000
Annual rent paid₹3,00,000

Step 2: Calculate three components

(1) Actual HRA received₹2,40,000
(2) Rent − 10% of basic (₹3,00,000 − ₹60,000)₹2,40,000
(3) 50% of basic (metro)₹3,00,000

Step 3: HRA exemption

Minimum of three components₹2,40,000
HRA exempt per year₹2,40,000
HRA exempt per month₹20,000
Taxable HRA₹0

Priya's entire HRA of ₹2,40,000 is exempt. Since rent exceeds ₹1,00,000/year, she must collect her landlord's PAN and maintain rent receipts.

FAQ

Only Delhi, Mumbai, Chennai, and Kolkata are metro cities for HRA purposes under Section 10(13A). Bangalore, Hyderabad, Pune, Ahmedabad, and all other cities are classified as non-metro. Metro residents get 50% of basic salary as the third component, while non-metro residents get 40%.
No. HRA exemption under Section 10(13A) is not available under the new tax regime (Section 115BAC). If you opt for the new regime, the entire HRA received from your employer is taxable as salary income. This is one of the key trade-offs when choosing between old and new regimes — use our Income Tax Calculator to compare both regimes.
Yes, you should maintain rent receipts for all months. If your annual rent exceeds ₹1,00,000, you must also provide your landlord's PAN card number to your employer. If your landlord does not have a PAN, they must provide a declaration in Form 60. Keep your rental agreement and bank transfer proof as supporting documents.
Yes, you can pay rent to your parents and claim HRA exemption, provided the arrangement is genuine. Your parents must include the rental income in their tax return. You need a proper rental agreement, rent receipts, and bank transfer proof. However, you cannot pay rent to your spouse and claim HRA exemption.
HRA exemption (Section 10(13A)) is for salaried employees who receive HRA as part of their salary. Section 80GG is for self-employed individuals or salaried employees whose employer does not provide HRA. The two are mutually exclusive — you cannot claim both. Section 80GG has a lower maximum of ₹5,000/month (₹60,000/year) and requires filing Form 10BA. Both are available only under the old tax regime.

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