HRA Exemption Calculator
Calculate your House Rent Allowance (HRA) tax exemption under Section 10(13A) for the Old Tax Regime.
How is HRA Exemption Calculated?
House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act is available only under the Old Tax Regime, to salaried employees who pay rent for their accommodation. The exemption is the least of three amounts:
- Actual HRA received from your employer
- Rent paid minus 10% of Basic Salary + DA
- 50% of Basic Salary + DA (metro cities) or 40% (non-metro cities)
Whatever HRA you receive beyond this exempt amount is added back to your taxable salary.
Frequently Asked Questions
Can I claim HRA exemption under the New Tax Regime?
No. HRA exemption under Section 10(13A) is only available if you opt for the Old Tax Regime. The New Regime does not allow this exemption.
What counts as a "metro city" for HRA purposes?
From FY 2026-27 onwards, Delhi, Mumbai, Kolkata, Chennai, Bangalore, Pune, Hyderabad and Ahmedabad are classified as metro cities, entitling you to the 50% of salary limit. All other cities use the 40% limit.
Read more: HRA exemption rules explained with examples