HRA Exemption Calculator
Calculate your tax-free House Rent Allowance for FY 2025-26. Get detailed breakdown, compliance tips, and optimization recommendations.
Calculating your HRA exemption...
How HRA Exemption is Calculated
Actual HRA Received
The HRA component received from your employer as part of salary.
Rent Minus 10% of Salary
Rent paid minus 10% of (Basic + DA). This ensures only excess rent is considered.
50% or 40% of Salary
50% of (Basic + DA) for metro cities, 40% for non-metro cities.
HRA Exemption = Minimum of the above three amounts
Frequently Asked Questions
Which cities are considered metro for HRA?
Only Delhi, Mumbai, Kolkata, and Chennai are considered metro cities for HRA calculation. All other cities including Bangalore, Hyderabad, Pune, etc. are non-metro. Metro cities get 50% of Basic+DA as the third rule, while non-metro get 40%.
Can I claim HRA if I live with my parents?
Yes, you can claim HRA even if you pay rent to your parents. Ensure you have a proper rental agreement and rent receipts. Your parents must declare this rental income in their tax returns.
Is HRA available under the new tax regime?
No, HRA exemption is not available under the new tax regime. If you pay significant rent, you may want to consider the old regime where HRA exemption can be claimed along with other deductions.
What documents are needed to claim HRA?
You need rent receipts (for rent above Rs 3,000/month), rental agreement, and PAN of landlord (if annual rent exceeds Rs 1 lakh). Keep these documents for your records in case of verification.