What is HRA and Section 10(13A)?
House Rent Allowance (HRA) is a part of your salary that helps pay for rented accommodation. Under Section 10(13A) of the Income Tax Act, 1961, a part of it can be exempt from tax if you pay rent. This calculator applies the "least of three" rule so you can see exactly how much of your HRA is tax-free.
For FY 2026-27 the exemption works only in the Old Tax Regime. If you are choosing between regimes, compare your total tax both ways. A valid rent receipt for every payment keeps your claim safe.
How the exemption is worked out
Your exemption is the smallest of these three amounts:
What your employer pays you
Rent paid minus 10% of salary
50% of salary (metro) or 40% (non-metro)
"Salary" here means basic pay plus dearness allowance (if it counts for retirement benefits) and commission earned as a fixed percentage of turnover. Bonuses and special allowances are not included.
Worked example
Basic salary ₹6,00,000, HRA received ₹2,40,000, rent paid ₹1,80,000, living in a non-metro city:
| Rule | Amount |
|---|---|
| Actual HRA received | ₹2,40,000 |
| Rent paid − 10% of salary (1,80,000 − 60,000) | ₹1,20,000 |
| 40% of salary | ₹2,40,000 |
| Exempt HRA (lowest) | ₹1,20,000 |
| Taxable HRA (2,40,000 − 1,20,000) | ₹1,20,000 |
How to use the calculator
- Choose monthly or yearly. Enter every amount in the same period. Results always show yearly totals.
- Enter basic salary + DA. Leave DA out if it is not part of your pay.
- Enter HRA received from your salary slip or offer letter.
- Enter rent paid to your landlord. Keep rent receipts ready for your employer.
- Pick your city type and select Calculate exemption. The row that decides your exemption is highlighted.
Put your tax savings to work
Tax you save through HRA can be invested. Use the Savings Goal Calculator to plan a target, or check how much the NPS Pension Calculator shows you could build for retirement.