HRA Exemption Calculator — Maximize Your Tax Savings on Rent
Calculate HRA exemption amount under Section 10(13A) of Income Tax Act. Find out how much of your House Rent Allowance is tax-free for FY 2025-26.
If you are a salaried employee living in a rented accommodation HRA exemption can significantly reduce your tax liability. The exemption amount is the minimum of three values: actual HRA received or 50% of basic salary for metro cities (40% for non-metro) or actual rent paid minus 10% of basic salary. Many employees miss this benefit because they do not understand the calculation. Use our calculator to find exactly how much tax you can save.
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Key Information
| Parameter | Details |
|---|---|
| Metro City Rate | 50% of Basic Salary |
| Non-Metro Rate | 40% of Basic Salary |
| Rent Deduction | Rent Paid - 10% of Basic |
| Eligible Employees | Salaried receiving HRA component |
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Use Calculator NowFrequently Asked Questions
How is HRA exemption calculated?
HRA exemption is the minimum of these three amounts: (1) Actual HRA received from employer (2) 50% of basic salary if you live in Delhi Mumbai Chennai or Kolkata or 40% for other cities (3) Actual rent paid minus 10% of basic salary. For example if basic is Rs 40000 HRA is Rs 20000 and rent is Rs 15000 in Mumbai the exemption is minimum of Rs 20000 or Rs 20000 or Rs 11000 = Rs 11000 per month.
Can I claim HRA if I have a home loan?
Yes you can claim both HRA exemption and home loan tax benefits simultaneously if you live in a rented house and also have a property financed through a home loan. This is legally valid when the rented and owned properties are in different cities or when you have genuine reasons for not living in the owned property.
Do I need rent receipts for HRA claim?
Yes rent receipts are mandatory for claiming HRA exemption if rent exceeds Rs 3000 per month. For rent above Rs 1 lakh per month you must also provide the landlord PAN number. If the landlord does not have a PAN a declaration to that effect is required. Keep all receipts safely as your employer or IT department may request them.
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Last updated: 24 March 2026