HRA Calculator — Tax Exemption FY 2025-26 & 2026-27
Calculate HRA tax exemption under Section 10(13A) free — for FY 2025-26 (4 metro cities) and FY 2026-27 (8 metro cities including Bangalore, Hyderabad, Pune, Ahmedabad). Available under old tax regime only.
Last updated: June 2026
City type
Annual HRA exemption
- HRA exempt
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- HRA taxable
- —
- Estimated tax saved
- —
The three conditions (annual)
- 1. Actual HRA received
- —
- 2. Rent − 10% of (Basic + DA)
- —
- 50% of Basic + DA
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Limiting factor: — (the exemption equals the smallest of the three).
Old regime only. HRA exemption is available only under the Old Tax Regime — it is not available if you opt for the New Tax Regime.
Metro list change. FY 2025-26: Metro = Delhi, Mumbai, Kolkata, Chennai only (4 cities — use this for your ITR due July 2026). FY 2026-27: metro expanded to 8 cities — adds Bangalore, Hyderabad, Pune and Ahmedabad (50%) from April 2026. Select your tax year above and the calculator applies the correct rate automatically.
Understand your HRA exemption in seconds.
House Rent Allowance (HRA) is one of the most valuable tax breaks available to salaried employees who live in rented accommodation. An HRA exemption calculator shows how much of the HRA in your salary is tax-free and how much is added to your taxable income. The rules are fixed by Section 10(13A) of the Income Tax Act, and the exemption is always the minimum of three separately calculated amounts — which is exactly what this calculator computes for you.
The three conditions are: the actual HRA you receive; the rent you pay minus 10% of your salary (basic plus DA); and 50% of your salary if you live in a metro city, or 40% if you don't. Enter your monthly figures and the tool annualises them, evaluates all three, and highlights the smallest — the limiting factor that becomes your exempt amount. Anything above that is your taxable HRA, which is added to your income and taxed at your slab rate.
Metro cities and the FY 2026-27 change
For decades, only four cities — Delhi, Mumbai, Kolkata and Chennai — counted as metros for HRA, qualifying for the higher 50% limit. For your FY 2025-26 return, that four-city rule still applies, so cities such as Bangalore and Pune use the 40% non-metro rate. From FY 2026-27, Bangalore, Hyderabad, Pune and Ahmedabad are being added to the metro list, raising their limit to 50%. Pick your city and tax year above and the calculator selects the correct percentage automatically — or override it manually if you need to.
Remember that HRA exemption is available only under the old tax regime; choosing the new regime forfeits it along with most other deductions. To actually claim the exemption, keep your rent receipts and, if annual rent exceeds ₹1,00,000, your landlord's PAN. This calculator runs entirely in your browser, so your salary and rent details never leave your device, and you can recompute as often as you like while comparing scenarios or tax regimes.
Financial & Tax Disclaimer: Results are estimates for informational purposes only and not tax advice. HRA rules and the metro city list can change — confirm with a qualified tax professional before filing.
How it works
Three quick steps — no account, nothing uploaded to a server.
Enter salary and rent
Add your monthly basic, DA, HRA received and rent paid.
Pick city and tax year
The correct metro/non-metro rate is applied automatically.
See exempt vs taxable
View all three conditions, the limiting factor and tax saved.
Rates and rules on this page are verified against Income Tax Department, India. Last checked July 2026.
FAQ
Frequently asked questions
How is HRA exemption calculated?
Your HRA exemption is the minimum of three amounts: (1) the actual HRA you receive, (2) the rent you pay minus 10% of your salary (basic + DA), and (3) 50% of salary if you live in a metro city or 40% if you don't. Whichever of these three is smallest is your exempt HRA; the rest of the HRA you receive is taxable. This calculator works out all three figures from your monthly inputs and shows which one is the limiting factor.
Which cities count as metro for HRA in FY 2025-26?
For FY 2025-26 (AY 2026-27), only Delhi, Mumbai, Kolkata and Chennai are treated as metro cities, qualifying for the higher 50% of salary limit. Every other city — including Bangalore, Hyderabad, Pune and Ahmedabad — is treated as non-metro at 40%. From FY 2026-27, Bangalore, Hyderabad, Pune and Ahmedabad are expected to be added to the metro list, raising them to 50%. Select your city and tax year above and the calculator applies the correct rate automatically.
Can I claim HRA exemption under the new tax regime?
No. HRA exemption is available only under the old tax regime. If you opt for the new tax regime, you cannot claim the HRA exemption (or most other deductions such as 80C and 80D). This calculator therefore assumes the old regime. If you are deciding between regimes, compare your total tax under each — the HRA and other deductions you can claim under the old regime may or may not outweigh the lower slab rates of the new regime.
What salary is used for the HRA calculation?
For HRA purposes, 'salary' means your basic salary plus dearness allowance (DA), if your DA forms part of retirement benefits, plus any commission based on a fixed percentage of turnover. It does not include other allowances or perquisites. Enter your monthly basic and DA above; the calculator annualises them to compute the 10%-of-salary deduction in condition two and the 50%/40%-of-salary cap in condition three.
Do I need rent receipts to claim HRA?
Yes. To claim HRA exemption you should keep rent receipts, and if your annual rent exceeds ₹1,00,000 you must also report your landlord's PAN. Declarations are made to your employer (historically via Form 12BB, which is being replaced by Form 12BBA-style declarations from April 2026) and reflected when you file your return. This calculator estimates the exemption; keep proper documentation to support the amount you actually claim.
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