HRA Exemption Calculator — Tax Year 2026/27

HRA exemption is only available under the Old Tax Regime. If you opt for the New Tax Regime, your entire HRA is taxable.

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Enter 0 if you don't pay rent or live in your own house.

Delhi, Mumbai, Kolkata, Chennai = Metro (50% rule)

Enter your salary details

Fill in your Basic Salary and HRA to see how much you can claim as tax-free.

HRA Exemption Rules: Section 10(13A)

House Rent Allowance (HRA) is one of the most effective ways for salaried professionals in India to save on income tax. Under Section 10(13A) of the Income Tax Act, you can claim an exemption on the rent you pay for your accommodation.

How is HRA Exemption Calculated?

The Income Tax Department calculates the exempt amount as the minimum of the following three criteria:

  • Actual HRA: The total HRA amount provided by your employer.
  • Rent Paid - 10% of Basic: The total rent you paid minus 10% of your basic annual salary.
  • The 50/40 Rule: 50% of your basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% if you live in any other city.

Documentation Checklist

To successfully claim HRA exemption without receiving a notice from the IT department, ensure you have the following documents ready:

Valid Rent Agreement (registered is preferred).
Monthly Rent Receipts signed by the landlord.
PAN of Landlord (Mandatory if annual rent exceeds ₹1 Lakh).
Digital payment proof (recommended over cash).

Frequently Asked Questions

No. HRA exemption is only available if you are actually paying rent to a landlord for your accommodation. If you live in your own house, the entire HRA received from your employer is fully taxable.
No. The New Tax Regime (Tax Act 2025) has removed most exemptions, including HRA. You can only claim HRA if you opt for the Old Tax Regime.
Yes, you can pay rent to your parents and claim HRA exemption. However, the transaction must be genuine—you should have a rent agreement, pay them via bank transfer, and they must report this as rental income in their own tax returns.
Yes, if your annual rent payment exceeds ₹1,00,000, you are legally required to provide your landlord's PAN to your employer to claim tax exemption.