🏠 HRA Calculator
HRA Exemption Calculator
🔥 +750% Search Spike — 8th Pay Commission HRA rates trending
House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act is the minimum of three values: actual HRA received, 50%/40% of basic salary, and actual rent minus 10% of basic salary. Updated for 8th Pay Commission revised rates.
8th Pay Commission HRA Rates
| City Category | 7th CPC | 8th CPC (Proposed) |
|---|---|---|
| X Cities (>50L population) | 24% | 30% |
| Y Cities (5–50L population) | 16% | 20% |
| Z Cities (Others) | 8% | 10% |
*8th Pay Commission proposals subject to government notification. Effective from January 2026.
HRA Exemption Calculator
Delhi, Mumbai, Kolkata, Chennai — 50% of Basic Salary
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Annual HRA Breakdown
A — Actual HRA Received
₹2,40,000
B — 50% of Basic (Metro)
₹3,00,000
C — Rent − 10% of Basic
₹2,40,000
HRA Exemption (Min of A, B, C)
₹2,40,000
Total HRA Received (Annual)₹2,40,000
HRA Exemption₹2,40,000
Taxable HRA₹0
HRA Exemption FAQs
What is the HRA exemption formula?
HRA exemption = Minimum of: (A) Actual HRA received, (B) 50% of annual basic salary for metro / 40% for non-metro, (C) Actual rent paid − 10% of annual basic salary. If C is negative (rent < 10% of basic), exemption on that component = ₹0.
Can I claim HRA if I live in my own house?
No. HRA exemption is only available if you actually pay rent for a rented accommodation. If you own the property you live in, the HRA received from employer is fully taxable under your salary income.
Is HRA exemption available under the new tax regime?
No. HRA exemption under Section 10(13A) is not available under the new tax regime introduced in Budget 2020. Only the standard deduction of ₹75,000 is available. The old tax regime allows HRA exemption.
Do I need rent receipts to claim HRA?
Rent receipts are required if annual rent exceeds ₹1 lakh (₹8,333/month). For rent exceeding ₹1 lakh annually, you must provide the landlord's PAN card number. Employers typically ask for rent receipts each year for Form 16 and TDS calculation.
Which cities are considered metro for HRA?
Only 4 cities are classified as metro under the Income Tax Act for HRA purposes: Delhi (including NCR), Mumbai (including Thane, Navi Mumbai), Kolkata, and Chennai. Bangalore, Hyderabad, Pune, Ahmedabad are all non-metro (40% of basic). This has not changed for FY 2025-26.