If you don’t receive HRA, you can claim up to ₹60,000 under Section 80GG.
Calculate tax (Budget 2026)Taxable HRA
Exempted HRA: ₹0
Based on Section 10(13A) as per Income Tax Rules 2026If you are a salaried person and get House Rent Allowance as a part of your salary, then this online HRA calculator tool is made for you. It helps you calculate your HRA exemption amount accurately and find how much of your HRA is tax-free and how much part is taxable as per income tax rules in India. You just need to enter your basic salary, HRA received, rent paid, and select whether you live in a metro or non-metro city.
Many salaried employees receive HRA but do not know how much exemption they can actually claim while filing their income tax return. The HRA exemption calculator helps you find this amount precisely as per Section 10(13A) of the Income Tax Act. This online HRA calculator for income tax is simple, accurate, and updated for FY 2025–26 (AY 2026–27).
House Rent Allowance or HRA is a salary component given by employers to help Employees pay rent for their house. The benefit of HRA is that it helps you save tax, as a portion of it is exempt from income tax under Indian tax laws. The exemption amount depends on your salary, rent, and the city where you stay.
If you are living in a rented house and receiving HRA from your employer, then this HRA calculator online is very useful. It helps you understand your exact HRA exemption and tax saving. The tool gives you a clear picture of how much HRA is exempt and how much is taxable. This helps you plan your salary and tax savings smartly.
Enter your salary details, choose "Do you live in Delhi, Mumbai, Kolkata or Chennai", and click the button to Calculate HRA Exemption. The calculator will show exempt and taxable portions instantly.
You can calculate your HRA exemption using the standard formula as per Section 10(13A) of the Income Tax Act. The HRA exemption is the least of the following three:
The least amount from these three values is treated as the exempted HRA amount. The rest of the HRA received will be added to your taxable income.
Suppose your annual basic salary is ₹6,00,000, DA is ₹0, HRA received is ₹2,40,000, and you pay ₹1,80,000 as annual rent. You live in Delhi, which is a metro city.
| Component | Details | Amount (₹) | Explanation |
|---|---|---|---|
| Basic Salary (Annual) | Employee’s yearly basic pay | ₹6,00,000 | Used as the base for HRA calculation |
| Dearness Allowance (DA) | Included if part of salary for retirement benefits | ₹0 | Added to basic salary only if applicable |
| HRA Received | Total annual HRA from employer | ₹2,40,000 | This is what your payslip shows as HRA |
| Rent Paid (Annual) | Amount paid to landlord per year | ₹1,80,000 | Required to claim exemption |
| 10% of Basic Salary | Deducted from rent for exemption rule | ₹60,000 | 10% × ₹6,00,000 |
| Rent Paid - 10% of Salary | Eligible rent portion for exemption | ₹1,20,000 | ₹1,80,000 − ₹60,000 |
| 50% of Salary (Metro City) | Applicable for Delhi, Mumbai, Chennai, Kolkata | ₹3,00,000 | 50% × ₹6,00,000 |
| HRA Exemption (Least of Above) | Lowest among 3 conditions | ₹1,20,000 | Least of ₹2,40,000, ₹3,00,000, ₹1,20,000 |
| Taxable HRA | HRA amount added to taxable income | ₹1,20,000 | ₹2,40,000 − ₹1,20,000 |
| ✅ Result: Out of ₹2,40,000 HRA received, ₹1,20,000 is exempt from tax, and ₹1,20,000 is taxable as per Income Tax Rules 2026. | |||
House Rent Allowance (HRA) exemption is calculated as the minimum of the following three:
Basic Salary: ₹50,000
HRA Received: ₹20,000
Rent Paid: ₹18,000
City: Metro
→ 10% of Basic = ₹5,000
→ Rent Paid - 10% of Basic = ₹13,000
→ 50% of Basic = ₹25,000
✅ HRA Exemption = Minimum of (20,000; 13,000; 25,000) = ₹13,000
*Taxable HRA = Actual HRA Received – Exempted HRA
The least of the three is ₹1,20,000. Hence, ₹1,20,000 is exempt from income tax, and the remaining ₹1,20,000 is taxable as per your income slab. This entire calculation is performed instantly by our online HRA calculator 2026.
The HRA calculator for income tax is designed to make your tax planning easy. You only need to enter your basic salary, DA, HRA received, rent paid, and city type — and the tool will automatically calculate your HRA exemption value online.
Any salaried employee who receives HRA and pays rent for accommodation can claim HRA exemption. Self-employed individuals cannot claim HRA under Section 10(13A). If you don’t receive HRA but still pay rent, you can claim a deduction under Section 80GG of the Income Tax Act up to ₹60,000 per year.
The HRA calculator India uses 50% of your basic salary if you live in a metro city like Delhi, Mumbai, Kolkata, or Chennai. For all other cities such as Pune, Hyderabad, Bengaluru, Ahmedabad, or Jaipur, 40% of your basic salary is used for the calculation. This distinction is made because the cost of living is higher in metro cities.
If you want to know your monthly HRA benefit, divide your annual values by 12 and use the same formula. This helps you understand your tax-free HRA every month and plan your salary and savings accordingly.
1. What is HRA exemption in income tax?
HRA exemption is the portion of your House Rent Allowance that is not taxable under income tax laws. It is calculated as the minimum of three values — actual HRA received, 50% or 40% of salary, and rent paid minus 10% of salary.
2. Who can claim HRA exemption?
Any salaried person who receives a House Rent Allowance (HRA) from their employer and actually pays rent for a house or flat can claim an HRA exemption under income tax rules. This benefit helps reduce taxable income. However, self-employed individuals are not eligible to claim HRA exemption under Section 10(13A) of the Income Tax Act.
3. What documents are needed to claim HRA?
You need rent receipts or a rent agreement. If your rent exceeds ₹1,00,000 per year, your landlord's PAN number(CPCJJ43XXX) must be submitted to your employer.
4. Can I claim HRA if I live with my parents?
Yes, you can claim HRA if you pay rent to your parents. The payment should be genuine, and you should keep records like rent receipts or bank transfers. Your parents must declare this rent as income.
5. Can I claim both HRA and home loan benefits?
Yes, if your house is in another city and you are paying rent in your current city of residence, you can claim both HRA and home loan benefits under the income tax rules.
6. What if my salary does not include HRA?
If your salary does not include HRA but you pay rent, you can claim a deduction under Section 80GG up to ₹60,000 per year, subject to certain conditions.
7. Is HRA exemption available under the new tax regime?
No, HRA exemption is not available if you have opted for the new tax regime under Section 115BAC. It is available only under the old regime.
8. Is there a limit on how much HRA can be claimed?
There is no fixed upper limit, but the exemption cannot exceed the actual HRA received from your employer and must satisfy the conditions of Section 10(13A).
9. How to Calculate HRA Exemption?
You can calculate your HRA exemption online using our free HRA calculator tool by entering your salary, rent, and city details. It instantly shows how much of your HRA is exempt and how much is taxable.
The HRA Calculator 2026 helps you calculate your HRA exemption accurately and plan your tax savings effectively. Whether you are a new employee or an experienced professional, this tool will help you understand your tax-free HRA and manage your finances smarter.