HRA Exemption Calculator 2026

HRA exemption = Minimum of three: (1) Actual HRA received from employer, (2) 50% of basic salary if metro city / 40% if non-metro, (3) Actual rent paid minus 10% of basic salary. The minimum of these three is your HRA tax exemption.

For HRA purposes, metro cities are: Mumbai, Delhi, Kolkata, and Chennai. These cities get 50% of basic salary as HRA. All other cities, including Bangalore, Hyderabad, Pune, Ahmedabad, get 40% of basic salary.

For annual rent below ₹1 lakh, no rent receipts are needed — just self-declaration. For annual rent above ₹1 lakh, rent receipts are mandatory. If landlord PAN is not provided and annual rent exceeds ₹1 lakh, TDS applies.

Yes, you can claim both HRA exemption and home loan deduction (Section 24b) simultaneously if: you work in one city and own a house in another city, or your home is under construction, or you live in rented accommodation and your owned house is in another city.

If HRA is not part of your salary, you can claim deduction under Section 80GG (max ₹5,000/month or ₹60,000/year) if you are self-employed or your salary doesn't include HRA. You must not own any residential property to claim 80GG.

For monthly rent above ₹8,333 (₹1L/year), you must submit PAN of landlord. A rent agreement strengthens your HRA claim and may be required by your employer's HR. No registration is required for rent agreements below ₹50,000/year in most states.