Free HRA Calculator India 2026

What is HRA Exemption?

House Rent Allowance (HRA) is a salary component provided by employers to help employees meet rental expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA can be claimed as tax exemption, provided you live in rented accommodation.

HRA Exemption Formula

HRA exemption is the minimum of the following three amounts:

1. Actual HRA received from your employer
2. Rent paid minus 10% of (Basic + DA) — i.e., Rent - 10% × (Basic + DA)
3. 50% of (Basic + DA) for Metro cities OR 40% of (Basic + DA) for Non-Metro cities

Metro vs Non-Metro Cities

Metro Cities (50%): Delhi, Mumbai, Chennai, Kolkata

Non-Metro Cities (40%): All other cities including Bangalore, Hyderabad, Pune, etc.

Documents Required for HRA Claim

• Rent receipts (if rent > ₹3,000/month)
• Landlord's PAN (if rent > ₹1,00,000/year)
• Rent agreement (recommended)
• Declaration to employer

Important Points

• HRA exemption is only available under the Old Tax Regime
• You cannot claim HRA if you own the house you live in
• If rent is paid to parents, ensure proper documentation and their income declaration
• HRA exemption cannot exceed the actual HRA received