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Free Tool · FY 2025-26

Free HRA Exemption Calculator For India 2026

Enter your basic, HRA received and actual rent — we’ll compute your exact Section 10(13A) exemption and the tax you save in seconds.

Section 10(13A) compliant Metro & non-metro Live exemption math
HRA Exemption Calculator
FY 2025-26
01

Salary & city

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Results update automatically as you type
LIVE CALCULATION
88.9%
OF HRA EXEMPT
Annual exemption₹1,92,000
Tax saved₹57,600
Taxable HRA₹24,000
Annual HRA received₹2,16,000
Annual rent paid₹2,40,000
Method 1 — Actual HRA₹2,16,000
Method 2 — Rent − 10% basic₹1,92,000
Method 3 — 50% of basic+DA₹2,40,000
Exemption (lowest of 3)₹1,92,000
Exemption = MIN( 2,16,000 , 1,92,000 , 2,40,000 ) = ₹1,92,000 · Tax saved ₹57,600
Section 10(13A) of Income Tax Act applied with Rule 2A. PAN of landlord required if annual rent > ₹1,00,000.

The formula, step by step

HRA exemption is the smallest of three statutory ceilings — you don’t pick one, the lowest wins automatically.

01

Compute the three ceilings

Each year, Rule 2A defines three caps: actual HRA, rent minus 10% of basic+DA, and 50% (metro) or 40% (non-metro) of basic+DA.

M1 = HRA | M2 = rent − 10% basic | M3 = basic × (metro ? 0.5 : 0.4)
02

Take the minimum

HRA exemption equals the LOWEST of M1, M2 and M3. If you pay no rent (or live with parents without rent receipts), M2 collapses and exemption can be zero.

exemption = MIN(M1, M2, M3)
03

Compute tax saved

Tax saved = exemption × your marginal rate. The remainder (HRA − exemption) is added to taxable salary. Old Regime only.

taxSaved = exemption × marginalRate
THE FULL FORMULA

HRA Exemption = MIN( Actual HRA, Rent − 10% Basic, 50%/40% Basic )

Section 10(13A) read with Rule 2A. “Basic” includes Dearness Allowance only if it forms part of retirement benefits. The exemption is computed per month and aggregated, but practically the annual numbers match if your salary structure is stable.

M1 = Actual HRA received
M2 = Rent paid − 10% × (Basic + DA)
M3 = cityFactor × (Basic + DA)
Exemption = MIN(M1, M2, M3)
Taxable HRA = HRA − Exemption
WORKED EXAMPLE · YOUR INPUTS
Basic ₹40,000/mo · HRA ₹18,000/mo · Rent ₹20,000/mo
MIN(₹2,16,000, ₹1,92,000, ₹2,40,000) = ₹1,92,000/yr

Methodology & sources

Calculation follows Section 10(13A) of the Income Tax Act, 1961 read with Rule 2A of the Income Tax Rules. PAN-of-landlord requirement applies when annual rent exceeds ₹1,00,000 (CBDT Circular 8/2013). HRA exemption is unavailable under the New Tax Regime by design.

01

Section 10(13A) IT Act

STATUTE

Primary exemption clause for House Rent Allowance paid to salaried employees.

02

Rule 2A, IT Rules

RULE

Defines the three-way minimum (actual HRA, rent − 10% basic, 50%/40% basic) used here.

03

CBDT Circular 8/2013

CIRCULAR

PAN of landlord mandatory when annual rent > ₹1L; declaration accepted if landlord has no PAN.

04

Union Budget 2020 & 2024

NEW REGIME

HRA exemption explicitly NOT available under Section 115BAC New Regime — this calculator flags it.

05

ClearTax HRA Guide

TAX REFERENCE

Practical HRA computation reference with case studies and ITR filing implications.

06

RazorpayX & Keka Payroll

SAAS REFERENCE

Production payroll engines computing monthly HRA exemption used here as cross-validation.

Reference: HRA exemption across cities & salary bands

Sample monthly exemption and tax saved for common basic-salary / rent combinations. Use as a sanity check, not a tax-planning benchmark.

CityBasic /moHRA /moRent /moTypeExemption /yrTax saved (30%)

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