HRA Exemption Calculator — Old Regime 2026
Work out exactly how much of your House Rent Allowance is tax-free under Section 10(13A). Available only under the old tax regime — a key input when choosing your regime.
How HRA exemption is calculated
The exempt portion is the least of three amounts — anything above it is taxed as salary.
50% (metro) or 40% (non-metro) × (basic + DA),
rent paid − 10% × (basic + DA) ), floor 0
Worked example (metro)
| Component | Amount / month |
|---|---|
| Basic + DA | ₹50,000 |
| HRA received | ₹20,000 |
| Rent paid | ₹18,000 |
| Rule 1: HRA received | ₹20,000 |
| Rule 2: 50% of basic+DA (metro) | ₹25,000 |
| Rule 3: rent − 10% of basic+DA | ₹18,000 − ₹5,000 = ₹13,000 |
| Exempt HRA (least of the three) | ₹13,000 (₹1,56,000 / year) |
Metro vs non-metro — when it matters
The metro flag only changes Rule 2 (50% vs 40% of basic+DA), so it matters when rent is high. Example: basic+DA ₹50,000, HRA ₹30,000, rent ₹30,000 — in a metro the exemption is ₹25,000/month (least of ₹30,000, ₹25,000, ₹25,000), but non-metro it drops to ₹20,000/month (40% rule binds). In the ₹18,000-rent example above, Rule 3 binds in both cases, so metro status makes no difference.
Frequently asked questions
How is HRA exemption calculated?
The exempt HRA is the least of three amounts: (1) actual HRA received, (2) 50% of basic+DA in a metro city or 40% elsewhere, and (3) rent paid minus 10% of basic+DA. With basic+DA of ₹50,000, HRA of ₹20,000 and rent of ₹18,000 in a metro, the exemption is ₹13,000 per month (₹1,56,000 a year).
Can I claim HRA exemption under the new tax regime?
No. HRA exemption under Section 10(13A) is available only in the old tax regime. If you pay high rent, the HRA exemption can be a strong reason to compare both regimes before choosing.
Which cities count as metro for HRA?
Only Delhi, Mumbai, Kolkata and Chennai count as metros (50% of basic+DA). All other cities, including Bengaluru, Hyderabad and Pune, use the 40% limit.
Do I need my landlord's PAN to claim HRA?
If your annual rent exceeds ₹1,00,000, you must report the landlord's PAN to your employer to claim HRA through payroll. Keep rent receipts and, ideally, pay rent through bank transfer as proof.
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