Tax
FY 2025-26HRA Exemption Calculator
Calculate exactly how much HRA you can claim as tax-exempt. The minimum of three conditions applies — this calculator shows all three.
HRA Exempt from Tax
₹1,80,000
Taxable HRA: ₹60,000 — will be added to your income
The 3 conditions (minimum is exempt)
Condition 1 — Actual HRA received
As per your salary slip
₹2,40,000
Condition 2 — 50% of basic salary
Metro city rate
₹3,00,000
Condition 3 — Rent paid minus 10% of basic
₹2,40,000 − ₹60,000
₹1,80,000
✓ Minimum
💡 Important: If annual rent exceeds ₹1,00,000, you must provide your landlord's PAN to your employer. Without PAN, HRA exemption may be disallowed.
Frequently asked questions
Can I claim HRA if I live in my own house?
No. HRA exemption is only available if you are paying rent for accommodation you are living in. If you own the house you live in, you cannot claim HRA exemption.
Can I claim both HRA and home loan deduction?
Yes, in some cases. If you own a house in a different city and pay rent in the city where you work, you can claim both HRA exemption (for rent paid) and Section 24b deduction (for home loan interest on the owned property).
What if my employer does not provide HRA?
If HRA is not part of your salary structure, you cannot claim HRA exemption. However, if you are self-employed, you can claim house rent deduction under Section 80GG subject to conditions.
Do I need to submit rent receipts to claim HRA?
If annual HRA exceeds ₹3,000/month, you should submit rent receipts to your employer for TDS purposes. For rent above ₹1 lakh/year, landlord PAN is also required.
How HRA exemption works in India
House Rent Allowance (HRA) is a component of your salary that helps cover rental expenses. If you live in a rented house, you can claim an exemption on HRA under Section 10(13A) of the Income Tax Act — but only under the Old Tax Regime. The New Regime does not allow HRA exemption.
The exempt amount is the lowest of three conditions:
Actual HRA received from your employer
50% of basic salary if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) — or 40% for non-metro cities
Actual rent paid minus 10% of your basic salary
For example: if your basic salary is ₹40,000/month, you receive ₹18,000 HRA, and you pay ₹20,000 rent in Mumbai (metro), the exempt HRA is the lowest of: ₹18,000 (actual HRA), ₹20,000 (50% of basic), and ₹16,000 (rent − 10% of basic). So ₹16,000/month is exempt from tax.
Want to compare Old vs New regime with HRA? Use the Income Tax Calculator or read our tax saving guide.