HRA Calculator (FY 2025-26): Calculate Your HRA Tax Exemption
Enter your salary details to calculate HRA exemption under Section 10(13A)
📢 Sample HRA Exemption Result
This is a sample House Rent Allowance (HRA) exemption breakdown for FY 2025–26 under the old tax regime (Section 10(13A)).
Update your Basic Salary, HRA Received, and Rent Paid above and click Calculate HRA to get your personalized tax-free and taxable HRA.
HRA Exemption Summary – Tax-Free Amount Under Section 10(13A)
How the Exempted HRA Was Chosen (Rule 2A)
As per Section 10(13A), the least of the following three values is allowed as HRA exemption.
| Condition | Calculated Amount | Status |
|---|---|---|
| Actual HRA Received | ₹2,40,000 | |
| 40% of Basic Salary (Non-Metro) | ₹3,20,000 | |
| Rent Paid – 10% of Salary | ₹1,00,000 | ✅ Used |
This calculator follows the official provisions of Section 10(13A) and Rule 2A of the Income Tax Rules, and has been carefully updated for FY 2025–26 using the latest publicly available documentation, circulars, and tax guidance. While developed with a strong foundation in domain expertise, it is intended for informational use only and should not be considered a substitute for personalized financial advice from a qualified tax professional or Chartered Accountant.
How to Use the HRA Calculator and Interpret the Results
⏱️ Estimated read time: 6 mins • 📊 Avg. users save ₹15,000/year using this calculator
The HRA Calculator on this page is designed to help you estimate how much of your House Rent Allowance (HRA) is exempt from income tax under Section 10(13A) of the Income Tax Act for FY 2025–26. This section provides step-by-step instructions to enter accurate inputs and understand the resulting calculation.
Step 1: Provide Accurate Salary and Rent Information
- Basic Salary + Dearness Allowance (DA): Enter the monthly or annual amount of your Basic Salary combined with Dearness Allowance. This figure is used as the base for HRA exemption calculations.
- HRA Received: Input the amount specified in your salary structure or payslip as House Rent Allowance.
- Rent Paid: Enter the total rent you pay for your accommodation. The amount must exceed 10% of your Basic + DA to be eligible for exemption.
- Metro City Selection: If you reside in Delhi, Mumbai, Kolkata, or Chennai, enable the metro city option. This increases the exemption threshold to 50% of salary instead of 40%.
- Calculation Mode: Choose either “Monthly” or “Yearly” to match the format in which your salary and rent figures are provided.
Step 2: Review the HRA Exemption Result
After submitting your inputs, the calculator displays a detailed result. The exempted and taxable portions of your HRA are calculated based on the official income tax rules. Specifically:
- Exempted HRA: This is the portion of your HRA that is not subject to income tax. It is determined by calculating all three conditions under Section 10(13A) and selecting the lowest value.
- Taxable HRA: The remaining portion of your HRA, which does not qualify for exemption, is added to your gross taxable income.
The result also includes a visual chart and a rule-based breakdown. If the exempt amount seems lower than expected, reviewing the table can help you identify which rule limited your exemption. You may then proceed to the Income Tax Calculator to estimate your total tax liability based on the taxable portion.
Guidelines for Best Results
- Ensure that your salary and rent figures correspond to the same time period (monthly or yearly).
- Round off inputs to the nearest whole number for consistency and accuracy.
- Refer to your latest payslip or Form 16 to confirm the correct values for HRA, Basic, and DA.
House Rent Allowance (HRA) Guide – Exemption Rules for FY 2025–26
House Rent Allowance (HRA) is a key salary component that can reduce your tax liability—if claimed correctly. This guide explains how HRA exemption is calculated under Section 10(13A) of the Income Tax Act, and how the rules vary between the old and new tax regimes. All information is up to date for FY 2025–26.
Old vs New Tax Regime: Can You Claim HRA?
Under the new tax regime (Section 115BAC), HRA exemption is not allowed. If you choose this regime, the full HRA received from your employer becomes taxable income.
The default calculation is based on the old tax regime, where HRA exemptions are allowed under Section 10(13A) for FY 2025–26. You must opt for this regime to claim any HRA-related tax benefits.
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Income Tax Calculator
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What is House Rent Allowance (HRA)?
House Rent Allowance (HRA) is a part of your salary paid by employers to help cover accommodation expenses. If you live in rented housing and meet specific conditions, HRA can be partially or fully exempt from income tax under Section 10(13A) of the Income Tax Act.
You can refer to the official government HRA exemption rules on theIncome Tax India HRA Calculator Toolor view the applicable rule text underRule 2A of the Income Tax Rules.
Key Factors That Affect HRA Exemption
- Basic Salary + Dearness Allowance (DA): This is the foundation for exemption calculation.
- HRA Received: The actual House Rent Allowance component mentioned in your salary slip.
- Actual Rent Paid: This must exceed 10% of your Basic + DA to qualify for exemption.
- City of Residence: Exemption is 50% of salary if you live in a metro (Delhi, Mumbai, Kolkata, Chennai), and 40% otherwise.
How is HRA Exemption Calculated?
As per Rule 2A of the Income Tax Rules, the tax-exempt portion of HRA is the lowest of the following three values:
- Actual HRA received from your employer.
- 50% of Basic + DA (for metro cities) or 40% (for non-metros).
- Rent paid minus 10% of Basic + DA.
➤ View the rule directly at:Rule 2A – Income Tax Rules (incometaxindia.gov.in)
HRA Calculation Example for FY 2025–26
Let’s take an example. Mr. Sharma lives in Mumbai (a metro city) and receives the following annual salary components:
Example: Annual Salary Components (FY 2025–26)
| Component | Monthly Amount | Annual Amount |
|---|---|---|
| Basic Salary + DA | ₹50,000 | ₹6,00,000 |
| HRA Received | ₹20,000 | ₹2,40,000 |
| Actual Rent Paid | ₹15,000 | ₹1,80,000 |
Step-by-Step HRA Calculation (FY 2025–26)
| Condition | Calculation | Amount |
|---|---|---|
| Actual HRA Received | ₹20,000 × 12 months | ₹2,40,000 |
| 50% of Basic + DA (Metro) | 50% of ₹6,00,000 | ₹3,00,000 |
| Rent Paid – 10% of Salary | ₹1,80,000 – ₹60,000 | ₹1,20,000 |
| Eligible HRA Exemption (Lowest of Above) | ₹1,20,000 | |
In this example, the lowest of the three values is ₹1,20,000, which becomes the exempt HRA under Section 10(13A). The remaining ₹1,20,000 out of the total HRA received (₹2,40,000) will be added to your taxable income for FY 2025–26.
Special Cases You Should Know
While the HRA calculation rules are straightforward, these special scenarios often confuse salaried employees. Here's how they work:
- Paying Rent to Parents: You can claim HRA exemption if you're living in your parents' house and paying them rent — provided you have a valid rental agreement and actual proof of rent paid (bank transfer or receipts). Your parents must also declare this rent as income in their ITR.
- Both Spouses Claiming HRA: If both spouses receive HRA and live in the same rented house, only the person making the rental payments (and having the rent agreement in their name) should claim the exemption. Double claims for the same rent can trigger scrutiny.
- Home Loan + Living on Rent: If you own a home (for which you're claiming home loan tax benefits) but are living in another rented city for work, you can still claim HRA exemption. The tax law allows both exemptions in such cases, assuming you meet all conditions.
Tips to Maximize HRA Benefits & Avoid Mistakes
- Keep rent receipts and a rent agreement: To claim HRA exemption, always maintain a formal rent agreement and digital or physical receipts as proof of payment.
- Landlord’s PAN is mandatory if annual rent exceeds ₹1 lakh: If you pay over ₹8,333 per month in rent, your employer may ask for your landlord’s PAN. Failure to submit it can lead to denial of exemption.
- No rent, no exemption: If you live in your own house or don’t actually pay rent, the full HRA amount becomes taxable.
- For freelancers/self-employed individuals: If you're not a salaried employee or don’t receive HRA, you may be eligible to claim rent deduction under Section 80GG instead — but with tighter limits and conditions.
- HRA is allowed only under the old tax regime: If you opt for the new tax regime (Section 115BAC), you cannot claim HRA exemption — regardless of how much rent you pay.
For official government instructions on rent and HRA, refer to theHRA Circular – Government of India.
Old Tax Regime: Still Relevant in FY 2025–26?
Confused between the old and new tax regimes under the latest income tax rules? Learn which regime gives you better savings based on deductions, exemptions, and your income bracket for FY 2025–26.
How to Save More on Taxes in India?
Discover smart tax-saving strategies using Section 80C, HRA exemptions, NPS, home loan benefits, and more. Make the most of legal deductions to reduce your taxable income in FY 2025–26.
This calculator follows the official provisions of Section 10(13A) and Rule 2A of the Income Tax Rules, and has been carefully updated for FY 2025–26 using the latest publicly available documentation, circulars, and tax guidance. While developed with a strong foundation in domain expertise, it is intended for informational use only and should not be considered a substitute for personalized financial advice from a qualified tax professional or Chartered Accountant.
House Rent Allowance FAQs
House Rent Allowance (HRA) exemption is a tax deduction allowed under Section 10(13A) of the Income Tax Act for salaried employees who live in rented accommodation. Our HRA Calculator instantly determines the tax-free portion of your HRA for FY 2025–26 by applying the official formula and rules, giving you an accurate and compliant result within seconds.
HRA exemption is calculated as the lowest of the following: (a) Actual HRA received, (b) 50% of salary (basic + DA) for metro cities or 40% for non-metro cities, and (c) Rent paid minus 10% of salary. Our calculator computes all three values for you and shows the minimum, along with a clear breakdown.
Yes, you can claim HRA exemption for rent paid to your parents, provided you have a valid rent agreement and payment proof. Our HRA Calculator does not ask who your landlord is, but it accurately calculates the exemption based on the rent paid and your salary details.
No, HRA exemption is not available under the new tax regime (Section 115BAC). If you opt for the new regime, the entire HRA you receive becomes taxable. Our calculator is designed for the old tax regime where HRA benefits apply.
Yes, even if you didn’t submit rent receipts to your employer, you can claim HRA exemption directly while filing your Income Tax Return (ITR). Just make sure you retain rent receipts and proof of payment, as required for tax compliance.
You need your landlord’s PAN only if the annual rent exceeds ₹1,00,000 (i.e., more than ₹8,333 per month). Failing to provide the PAN may lead to denial of the exemption during scrutiny.
Yes, you can claim both HRA exemption and home loan interest deduction if you live in a rented house while owning a separate property elsewhere. This is allowed under the old tax regime. Our calculator helps you compute HRA exemption, and you can use our Income Tax Calculator to see total tax benefits.
Yes, if you don’t receive HRA and pay rent, you may claim a deduction under Section 80GG. However, the limits are lower and subject to additional conditions. Our HRA Calculator is meant for salaried employees receiving HRA; for others, use our Income Tax Calculator with 80GG input.
Yes, our calculator uses the correct exemption threshold—50% of salary for metro cities and 40% for non-metro cities—based on your input. Just toggle the 'Metro City' option, and the tool adjusts the calculation instantly.
Yes, the HRA Calculator is updated for Financial Year 2025–26 (Assessment Year 2026–27). It uses the latest tax rules as per Section 10(13A) and ensures full compliance with current tax laws.