✅ Free Tool — FY 2025-26
HRA Exemption Calculator India 2025-26 — Section 10(13A)
Calculate your exact HRA tax exemption using the three-condition minimum rule. See exempt vs taxable HRA, annual tax saving, and month-by-month breakdown instantly.
HRA Exemption Formula — Minimum of three:
(A) Actual HRA received from employer
(B) Actual rent paid − 10% of basic salary
(C) 50% of basic salary (metro) or 40% (non-metro)
The lowest of A, B, C is tax-exempt. The rest is taxable.
(A) Actual HRA received from employer
(B) Actual rent paid − 10% of basic salary
(C) 50% of basic salary (metro) or 40% (non-metro)
The lowest of A, B, C is tax-exempt. The rest is taxable.
⚠️
HRA exemption is only available under the Old Tax Regime. If you have opted for the New Tax Regime (default from FY 2024-25), your entire HRA is taxable. Consider switching to old regime if you pay high rent — this calculator helps you decide.
Your HRA Details
₹10K₹5 L
₹0₹3 L
₹0₹3 L
Monthly HRA Exemption
₹14,000
Minimum of three conditions
Annual Exemption: ₹1,68,000
📐 The Three Conditions — Minimum Is Exempt
A
Actual HRA Received
From your employer / salary slip
₹20,000
B
Rent Paid − 10% of Basic
₹18,000 − ₹4,000 = ₹14,000
₹14,000
C
50% of Basic Salary
50% of ₹40,000 — Metro city
₹20,000
✅ Minimum (Tax-Exempt HRA)
₹14,000 / month
HRA Received (Monthly)₹20,000
HRA Exempt (Monthly)₹14,000
HRA Taxable (Monthly)₹6,000
Annual HRA Exempt
₹1,68,000
Annual HRA Taxable
₹72,000
Estimated Annual Tax Saving on HRA
At 20% slab + 4% cess (old regime)
₹34,944
🏙️ Metro vs Non-Metro Cities — HRA Exemption Percentage
The city type determines Condition C in the HRA exemption calculation. Only 4 cities are classified as Metro for HRA purposes — all others are non-metro regardless of population.
| City | Classification | HRA % (Condition C) | Example: Basic ₹50,000 |
|---|---|---|---|
| Mumbai | Metro | 50% of basic | ₹25,000/month |
| Delhi (NCR) | Metro | 50% of basic | ₹25,000/month |
| Kolkata | Metro | 50% of basic | ₹25,000/month |
| Chennai | Metro | 50% of basic | ₹25,000/month |
| Bangalore | Non-Metro | 40% of basic | ₹20,000/month |
| Hyderabad | Non-Metro | 40% of basic | ₹20,000/month |
| Pune | Non-Metro | 40% of basic | ₹20,000/month |
| All other cities | Non-Metro | 40% of basic | ₹20,000/month |
* Note: Bangalore, Hyderabad, and Pune are NOT classified as metro for HRA purposes despite being major cities — they get 40% of basic, not 50%.
📝 HRA Exemption Worked Example
A salaried employee in Bangalore with the following salary structure:
📊 Example: Bangalore Employee
Monthly Basic Salary₹50,000
Monthly HRA Received₹20,000
Monthly Rent Paid₹22,000
City TypeNon-Metro (40%)
Condition A — Actual HRA received₹20,000
Condition B — Rent − 10% of Basic = ₹22,000 − ₹5,000₹17,000
Condition C — 40% of ₹50,000₹20,000
✅ Minimum (Exempt HRA)₹17,000/month
❌ Taxable HRA (₹20,000 − ₹17,000)₹3,000/month
Annual HRA Exemption₹2,04,000
Tax Saved at 30% slab + cess₹63,648
📖 How to Use This HRA Calculator
- Enter Basic SalaryEnter your monthly basic salary — this is shown separately on your salary slip. Do not enter gross or CTC.
- Enter HRA Received & Rent PaidHRA received is the HRA component on your salary slip. Rent paid is the actual rent you pay to your landlord every month.
- Select City TypeMetro (Delhi, Mumbai, Chennai, Kolkata) gets 50% of basic. All other cities including Bangalore, Hyderabad, and Pune get 40%.
- Read Your ExemptionThe calculator shows all three conditions individually, highlights which is the minimum (your exemption), the taxable portion, and estimated annual tax saving at your slab.
✅ Why Use This Calculator
📐
All 3 Conditions Shown
Displays each condition separately so you understand exactly why a particular amount is exempt.
🏙️
Metro vs Non-Metro
One-click toggle between metro (50%) and non-metro (40%) with city list.
💰
Tax Saving Estimate
Shows estimated annual tax saving at your chosen slab including 4% cess.
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Regime Warning
Clearly flags that HRA exemption is only for old regime — helps you decide which regime to choose.
📝
Worked Example
Real Bangalore example showing full calculation step-by-step.
🔒
100% Private
No data stored. Runs entirely in your browser.
❓ HRA Exemption — Frequently Asked Questions
How is HRA exemption calculated in India?
HRA exemption = Minimum of: (A) Actual HRA received from employer, (B) Actual rent paid minus 10% of basic salary, (C) 50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for all other cities. The minimum of these three is tax-exempt under Section 10(13A). Example: Basic ₹40,000, HRA ₹20,000, Rent ₹18,000, Metro city. A=₹20,000, B=₹14,000, C=₹20,000. Exempt = ₹14,000. Taxable HRA = ₹6,000.
Is HRA available under the new tax regime?
No — HRA exemption under Section 10(13A) is not available if you opt for the new tax regime (default from FY 2024-25). Under new regime, your entire HRA is added to taxable income. If your HRA exemption is significant, the old regime may save more tax overall despite higher slab rates. Use the Income Tax Calculator to compare both regimes with your actual HRA exemption amount.
Can I claim HRA if I live with my parents?
Yes, you can claim HRA by paying rent to your parents, provided: you have a proper rent agreement, you pay via bank transfer (not cash), and your parents declare this rental income in their ITR. Parents cannot claim HRA — they are the property owners. This is a legitimate tax planning strategy. Landlord PAN is required if annual rent exceeds ₹1 lakh.
What documents do I need for HRA exemption?
Documents for HRA claim: Monthly rent receipts with landlord signature and revenue stamp (for rent above ₹3,000/month), rent agreement/lease deed, landlord PAN card copy (if annual rent exceeds ₹1,00,000). Bank statements showing rent payment via transfer. Submit to employer for TDS adjustment. Without documents, employer may not give HRA exemption benefit while deducting TDS.
Can I claim HRA and home loan interest both?
Yes, both can be claimed simultaneously under the old regime if: you work in a different city from where your property is located, OR your property is under construction, OR you are paying rent in the city of work and own property elsewhere. Both exemptions cannot be claimed if you live in your own property in the same city where you work.
What if rent paid is less than 10% of basic salary?
If rent paid is equal to or less than 10% of basic salary, Condition B becomes zero or negative. In that case, no HRA exemption is available regardless of how much HRA you receive. Example: Basic = ₹50,000, Rent paid = ₹4,000. 10% of basic = ₹5,000. Condition B = ₹4,000 − ₹5,000 = −₹1,000. Since this is negative, HRA exemption = ₹0. You would need to pay more rent to claim exemption.
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