HRA Calculator India 2026
Calculate your House Rent Allowance tax exemption and find out how much HRA is taxable.
HRA Details
Your basic salary component (excluding allowances)
House Rent Allowance component in your salary
Actual rent you pay to your landlord
Metro: Delhi, Mumbai, Kolkata, Chennai
Note: HRA exemption is calculated as the minimum of three criteria as per Indian Income Tax Act.
HRA Tax Exemption
₹0
Tax-free HRA (per month)
HRA Breakdown
Exemption Calculation (3 Criteria)
1. Actual HRA Received
Total HRA in your salary
2. 50% of Basic Salary
Based on metro city
3. Rent - 10% of Basic
Actual rent minus 10% of basic
Tax Impact (30% Bracket)
Understanding HRA Tax Exemption
What is HRA (House Rent Allowance)?
House Rent Allowance (HRA) is a component of your salary provided by employers to meet accommodation expenses. If you live in a rented house, a part of your HRA is exempt from income tax under Section 10(13A) of the Income Tax Act.
Who is Eligible for HRA Exemption?
- Salaried employees receiving HRA as part of their salary structure
- Living in a rented accommodation (not your own house)
- Paying rent to a landlord (with rent receipts as proof)
- Not living in your own house in the same city
HRA Exemption Formula Explained
The HRA tax exemption is calculated as the minimum of these three criteria:
- Actual HRA Received: The total HRA amount your employer pays you
- 50% or 40% of Basic Salary:
- 50% of basic salary if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai)
- 40% of basic salary if you live in a non-metro city
- Rent Paid minus 10% of Basic Salary: Actual rent you pay minus 10% of your basic salary
Metro vs Non-Metro Cities
Metro Cities (50%)
- Delhi
- Mumbai
- Kolkata
- Chennai
Non-Metro Cities (40%)
All other cities including Bangalore, Hyderabad, Pune, Ahmedabad, etc.
Documents Needed for HRA Claim
- Rent receipts: Monthly rent receipts from your landlord
- Rental agreement: Copy of the lease/rental agreement
- Landlord's PAN: Required if annual rent exceeds ₹1 lakh
- Form 16: From your employer showing HRA received
- Proof of payment: Bank statements showing rent payments
What if You Live in Your Own House?
If you live in your own house (that you own), you cannot claim HRA exemption even if you receive HRA in your salary. The entire HRA will be taxable. However, you may be able to claim:
- Home loan interest deduction under Section 24(b) - up to ₹2 lakhs
- Principal repayment deduction under Section 80C - up to ₹1.5 lakhs
Can You Claim Both HRA and Home Loan Benefits?
Yes! You can claim both if:
- You own a house in one city and work in a different city
- You live in a rented accommodation in your work city
- Your owned house is either vacant or let out
- You have a valid reason for not living in your own house
Frequently Asked Questions
1. Is HRA exemption available if I don't receive HRA in my salary?
No, HRA exemption under Section 10(13A) is only available if you receive HRA as part of your salary. However, if you don't receive HRA, you can claim deduction for rent paid under Section 80GG (up to ₹5,000 per month, subject to conditions).
2. What if I pay rent to my parents or spouse?
You can pay rent to parents and claim HRA exemption. Ensure you have a proper rental agreement and make payments through bank transfer. However, paying rent to your spouse is not allowed for HRA claims.
3. Do I need to submit rent receipts every month?
You should submit rent receipts to your employer at least annually. Most companies require them quarterly or annually. Keep all receipts safely as they may be required during ITR filing or tax scrutiny.
4. What is the format for rent receipts?
Rent receipts should include: tenant's name, landlord's name and address, rental property address, rent amount, period for which rent is paid, revenue stamp (if rent exceeds ₹5,000/month), and landlord's signature. If annual rent exceeds ₹1 lakh, landlord's PAN is mandatory.
5. Can I claim HRA if I live in a company-provided accommodation?
If your company provides you rent-free accommodation, you cannot claim HRA exemption. The perquisite value of rent-free accommodation will be added to your taxable income instead.
6. What happens if I change cities during the year?
If you move from a metro to non-metro city (or vice versa), calculate HRA exemption separately for each period. Use 50% for months in metro cities and 40% for months in non-metro cities.
7. Is there a maximum limit on HRA exemption?
There is no maximum limit on HRA exemption amount. However, it cannot exceed the actual HRA received from your employer. The exemption is always the minimum of the three criteria mentioned above.
8. What if I'm paying rent but my employer doesn't provide HRA?
You can claim deduction under Section 80GG. The deduction is the minimum of: (a) ₹5,000 per month, (b) 25% of adjusted total income, or (c) Actual rent paid minus 10% of adjusted total income. This is available only if you don't receive HRA.