How is HRA exemption calculated?

It is the minimum of: actual HRA received, 50%/40% of basic salary (metro/non-metro), and rent paid minus 10% of basic salary.

Which cities count as metro for HRA?

Only Mumbai, Delhi, Chennai and Kolkata. All other cities (including Bengaluru, Hyderabad, Pune) are treated as non-metro at 40%.

Can I claim HRA while paying rent to my parents?

Yes — provided the parents own the home, you actually pay them rent (via bank transfer) and they declare it in their ITR.

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HRA Exemption Calculator

Find the maximum HRA exemption you can claim under Section 10(13A) of the Income Tax Act.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Basic Salary (Monthly)₹50,000

₹10K₹5L

Dearness Allowance (Monthly)₹0

₹0₹1L

HRA Received (Monthly)₹20,000

₹0₹2L

Rent Paid (Monthly)₹18,000

₹0₹2L

City Type

HRA Exemption (Annual)₹1,56,000

Taxable HRA (Annual)₹84,000

HRA Breakdown

3 Rules — Lowest applies:

Actual HRA received
50% of (Basic + DA)
Rent paid − 10% of (Basic + DA)

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What is HRA exemption?

House Rent Allowance (HRA) is a salary component for employees living in rented accommodation. Under Section 10(13A) of the Income Tax Act, a portion is tax-exempt.

Documents required

Rent receipts (monthly or quarterly)
Rental agreement
Landlord's PAN if annual rent exceeds ₹1,00,000

Frequently Asked Questions

Everything you need to know about the HRA Exemption Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.