HRA Calculator · FY 2026-27

HRA exemption calculator — old regime.

Enter your basic salary + DA, HRA received, and rent paid. The calculator finds the minimum of the three legs under Section 10(13A) and shows what's exempt and what's taxable.

Updated July 2026
Built by CA Anil Agarwal

Basic salary + DA (per month, ₹)

HRA received (per month, ₹)

Actual rent paid (per month, ₹)

City of residence

Result

₹16,000

HRA exempt from tax (per month)

(a) Actual HRA received: ₹18,000
(b) Rent paid − 10% of basic: ₹16,000
(c) 50% of basic + DA: ₹20,000
Exempt HRA (minimum of a, b, c): ₹16,000
Taxable HRA: ₹2,000

Note: HRA exemption under Section 10(13A) is available only under the old tax regime. The new regime does not allow this exemption. This is an estimate — confirm the exact figure with your CA before filing.

Payroll that computes HRA exemption for you.

TatvaBooks payroll applies Section 10(13A) automatically at every payslip run, factors it into monthly TDS on salary, and carries it straight through to Form 16 — no separate HRA worksheet to maintain.

Request beta access See payroll features

How it works

Minimum of three, not a flat rate.

The three legs of Section 10(13A)

HRA exemption is not simply "HRA received" or a flat percentage — it is the lowest of three amounts: (a) the actual HRA your employer pays you, (b) actual rent paid minus 10% of basic salary plus DA, and (c) 50% of basic plus DA if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% in any other city. Whichever of the three is smallest becomes your tax-free HRA; the remainder is added to your taxable salary and taxed at your slab rate.

Why rent matters so much

Legs (a) and (c) depend only on your salary structure — they don't change month to month. Leg (b) is the one driven by your actual rent, and in most cases (especially for salaried employees in metros paying market rent) it is the leg that ends up smallest, and therefore the one that caps your exemption. If you pay little or no rent, leg (b) can fall to zero — meaning no HRA exemption at all, even if your employer pays a generous HRA component.

Old regime only

Section 10(13A) exemption is available only under the old tax regime. The new regime, which is the default from FY 2023-24 onward, does not allow HRA exemption (along with most other exemptions such as 80C, 80D, and LTA). If your rent-driven HRA exemption is significant, it's one of the strongest reasons to run the numbers under both regimes before choosing. See our new vs old tax regime comparison to compare your total tax liability either way.

Beyond this calculator

This tool assumes standard salaried employment with a defined HRA component. It does not cover Section 80GG (for those without an HRA component), multiple employers in one year, or partial-year tenancy changes. For the full picture on salary structuring, exemptions and your Form 16, see our income tax guide and Form 16 guide.

Frequently asked questions

HRA calculator — common questions.

How do I use this HRA exemption calculator?

Enter your monthly basic salary plus dearness allowance (DA), the HRA you actually receive from your employer, and the actual rent you pay. Choose whether you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or a non-metro city. The calculator works out the exempt HRA as the minimum of the three legs prescribed under Section 10(13A), and shows the balance as taxable HRA.

What is the formula for HRA exemption?

HRA exemption is the minimum of: (a) actual HRA received from the employer, (b) rent paid minus 10% of basic salary plus DA, and (c) 50% of basic plus DA if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% for a non-metro city. Whichever of the three is lowest becomes your exempt HRA; the rest is added to taxable salary.

Does HRA exemption apply under the new tax regime?

No. HRA exemption under Section 10(13A) is available only if you opt for the old tax regime. The new tax regime (the default from FY 2023-24 onward) does not allow HRA exemption, along with most other exemptions and deductions. If your rent is high relative to your salary, this is one of the strongest reasons to evaluate the old regime.

What if I don't receive HRA but pay rent?

If your employer does not pay you HRA as a separate component, or if you are self-employed, you cannot claim exemption under Section 10(13A). Instead, you may claim a deduction for rent paid under Section 80GG, subject to conditions (you, your spouse, or minor child should not own residential accommodation in the city of employment) and a cap — the least of ₹5,000 per month, 25% of total income, or rent paid minus 10% of total income.

Do I need rent receipts and a PAN of the landlord to claim HRA?

Yes. Employers generally ask for rent receipts to allow HRA exemption in monthly TDS on salary. If annual rent exceeds ₹1,00,000, you must also furnish the landlord's PAN — if the landlord does not have a PAN, a declaration is typically required instead. Keep the rent agreement and payment proof (bank transfer, not cash) as supporting evidence in case of scrutiny.

Can I claim HRA exemption if I pay rent to my parents?

Yes, this is legally permitted, provided the arrangement is genuine — a proper rent agreement, actual rent payments through a bank (not cash), and rent receipts. Your parent must declare the rent received as income under 'Income from house property' in their own return. This is commonly used and accepted, but it must reflect a real tenancy, not a paper arrangement — tax authorities do scrutinise such claims.

Payroll that applies HRA exemption automatically.

TatvaBooks computes Section 10(13A) exemption at every payslip, keeps monthly TDS on salary accurate, and rolls straight into Form 16 at year-end.

Request beta access See payroll features