How To Do
HRA Exemption Calculator
Find out how much of your House Rent Allowance is exempt from tax under section 10(13A). Works for FY 2025-26 (AY 2026-27) under the Old regime.
How HRA exemption works
Section 10(13A) lets you exempt the least of three numbers from your HRA:
- Actual HRA received from your employer.
- Rent paid minus 10% of (Basic + DA).
- 50% of (Basic + DA) if you live in a metro, else 40%.
If you live with your parents and pay them rent, that's allowed — but you need a rent agreement, receipts, and your parents must declare the rent as income. If your annual rent exceeds ₹1,00,000, you must report your landlord's PAN.
FAQ
Can I claim HRA under the New tax regime?
No. HRA exemption is available only under the Old regime. Use our Income Tax Calculator to compare both regimes.
Which cities count as metro?
For HRA purposes, only Mumbai, Delhi, Kolkata, and Chennai are metros (the four "metropolitan" cities under the Income Tax Act). Bangalore, Hyderabad, Pune, Gurgaon — all non-metro for HRA, even though we colloquially call them metros.
Do I need rent receipts?
Yes — your employer will ask for them to allow HRA in TDS. Generate them with our Rent Receipt Generator. If annual rent exceeds ₹1L, the landlord's PAN is mandatory.
What if I own a house in another city?
You can still claim HRA for the city you actually rent in, even if you own property elsewhere. The owned house is treated separately (self-occupied or let-out) for tax.
Can I claim both HRA and home loan interest?
Yes, if your owned home is in a different city or genuinely not feasible to live in (e.g. workplace far away). You can claim HRA for rent and the home loan interest deduction simultaneously.