HRA Exemption Calculator (House Rent Allowance) 2026
Calculate exact tax-exempt House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act.
50% cities (tax year 2026-27) = Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. All others qualify at 40%. Up to FY 2025-26 only Delhi, Mumbai, Kolkata and Chennai qualified.
Tax-free HRA (old regime)
₹1.80 L
That's 75% of the HRA you received.
Exempt vs Taxable
₹1.80 L
₹60,000
The three bounds — how exempt HRA is computed
Section 10(13A) takes the least of these three numbers as your exempt HRA. The smallest one is binding — the others do not matter.
| Bound | Value | Binding? |
|---|---|---|
| 1. Actual HRA received | ₹2.40 L | |
| 2. 50% of basic + DA | ₹3.00 L | |
| 3. Rent paid − 10% of basic + DA | ₹1.80 L | ✓ |
The HRA Exemption Formula: Claiming Maximum House Rent Tax Relief
Salaried employees residing in rented housing can claim substantial tax exemptions under Section 10(13A) read with Rule 2A. Under the statutory formula, the exempt HRA amount is determined by selecting the lowest of three prescribed limits.
Actual HRA Received
The total House Rent Allowance component disbursed by your employer as part of your salary structure.
Rent Paid Minus 10% Basic
Actual rent paid across the financial year minus 10% of your annual Basic Salary plus Dearness Allowance.
50% / 40% of Basic Pay
50% of Basic Salary if residing in Delhi, Mumbai, Kolkata, or Chennai; 40% of Basic Salary for all other cities in India.
Income Tax
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