HRA Calculator
Calculate HRA exemption under Section 10(13A). See taxable HRA, tax at slab and the three exemption limits.
Last updated: 5 October 2026. HRA rules follow the Income Tax Act and Rule 279 — confirm metro classification and documentation with your employer or tax adviser.
What is HRA exemption?
House Rent Allowance (HRA) is a salary component paid by many employers to help with rent. Under Section 10(13A), a portion of HRA can be exempt from income tax if you live in rented accommodation and meet the statutory conditions.
This calculator applies the three statutory limits and shows taxable HRA plus an illustrative tax estimate at your chosen marginal slab.
How HRA exemption is calculated
Exempt HRA is the minimum of:
1. Actual HRA received · 2. Rent paid − 10% of (basic + DA) · 3. 50% of (basic + DA) in metro cities, or 40% elsewhere.
Worked example: Monthly basic ₹50,000, HRA ₹20,000, rent ₹25,000, metro city → annualise then take the least of the three limits. The hero figure is annual HRA exempted.
Metro vs non-metro
Under Rule 279, the 50% cities are Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. All other locations use 40%. City type only changes the third limit — not rent or HRA received.
HRA vs income tax vs TDS
| Feature | HRA exemption | Income tax | TDS on salary |
|---|---|---|---|
| What it does | Exempts part of rent allowance from tax | Computes tax on total taxable income | Employer withholds tax from salary |
| Key inputs | Basic, HRA, rent, metro/non-metro, DA | Income heads, deductions, regime | Gross salary, declarations, regime |
| Legal basis | Section 10(13A) + Rule 279 | Income Tax Act slabs & chapters | Section 192 |
| When useful | Salaried tenants estimating Form 124 | Full-year tax liability planning | Monthly payroll withholding |
Full tax liability: Income tax calculator. Salary withholding: TDS calculator. Declarations: Income tax planner.
Who should use an HRA calculator?
Salaried employees who receive HRA and pay rent, HR/payroll teams checking Form 124 claims, and anyone estimating how much HRA remains taxable before filing.
Frequently asked questions about HRA
How is HRA exemption calculated?
Exemption is the least of: (1) actual HRA received, (2) rent paid minus 10% of basic salary plus DA, and (3) 50% of basic+DA if you live in a metro city, or 40% elsewhere.
Which cities count as metro for HRA?
Under Income-tax Rules, 2026, Rule 279, the 50% cities are Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru. Other cities use the 40% limit.
Do I need rent receipts to claim HRA?
Yes. Employers typically ask for rent receipts and landlord details via Form 124. If annual rent exceeds the prescribed threshold, landlord PAN is generally required.
Can I claim HRA if I live with my parents?
You may claim HRA if you pay rent to your parents under a genuine rental arrangement and can evidence payment. Self-owned house in the same city typically disallows HRA for that residence — check current rules.
Is HRA available in the new tax regime?
HRA exemption under Section 10(13A) is generally available only under the old regime when you claim exemptions/deductions. The new regime has limited exemptions — verify for your assessment year.
Should I enter monthly or yearly amounts?
Either works. Choose monthly if your payslip and rent are monthly; choose yearly if you already have annual figures. The calculator annualises monthly inputs before applying the three limits.
What is dearness allowance (DA) used for?
Basic + DA forms the salary base for the 10% and 40%/50% limits. If your CTC includes DA, turn on the DA toggle and enter the same period (monthly/yearly) as basic.
What does tax at slab mean in the results?
It multiplies taxable HRA (HRA received − exemption) by your selected marginal slab (5%–30%). It is illustrative and ignores surcharge, cess and full progressive slab stacking.
Is HRA the same as Section 80GG?
No. HRA is for salaried employees who receive HRA. Section 80GG may help those who pay rent but do not receive HRA. Use the income tax or income tax planner tools for 80GG estimates.
Does this calculator file my taxes?
No. It performs Section 10(13A) arithmetic on numbers you enter. Use it for planning, then declare correctly in Form 124 / ITR with supporting documents.
HRA exemption calculator for metro city with ₹30,000 rent and ₹20,000 HRA?
Exemption is the minimum of actual HRA, rent paid minus 10% of salary, and 50% of salary (metro) / 40% (non-metro). Enter city type, salary and rent to see the exempt amount — illustrative for old-regime style claims.
How to calculate HRA if I pay rent to parents in India?
You may claim HRA if you genuinely pay rent and have documentation (and parents may need to show rental income). Enter the rent you actually pay; this calculator does not validate family arrangements or Form 124 paperwork.
Disclaimer: Illustrative Section 10(13A) math only. Not tax, legal or accounting advice. Verify with a qualified professional and current Income Tax notifications.
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