How much of your HRA is actually tax-free?

Instant HRA exemption calculation under Section 10(13A), with the exact three-way comparison your employer uses — and what switching to the new regime would cost you.

FY 2026-27 ready Metro & non-metro No signup

Your details (monthly)

DA is included only if it counts for retirement benefits. Bengaluru, Hyderabad, Pune and Gurgaon are non-metro for HRA purposes.

🚀 Klair Pro — ₹999/year

  • Rent receipts for the full year, auto-filled from this calculator
  • GST invoices, saved profiles & more — one subscription, all Klair tools
  • Email receipts to your landlord for e-signature
Secure payment via Razorpay — UPI, cards or netbanking. Prefer email? Join the waitlist instead.

Your HRA exemption

TAX-FREE HRA (PER YEAR)
—
The exemption is the least of these three (annual):
HRA received (annual)—
Tax-free portion—
Taxable HRA added to income—
Old vs new regime: HRA exemption exists only in the old regime. In the new regime your entire HRA is taxable — but slab rates are lower. Generate your rent receipts to claim it.

FAQ

How is HRA exemption calculated?

Under Section 10(13A), the tax-free portion of HRA is the least of: (1) actual HRA received, (2) rent paid minus 10% of basic salary + DA, and (3) 50% of basic + DA in a metro city or 40% elsewhere. The rest of your HRA is taxable.

Which cities count as metro?

Only Delhi, Mumbai, Kolkata and Chennai qualify for the 50% limit. Bengaluru, Hyderabad, Pune, Gurgaon, Noida and all other cities use 40% — a common and costly mistake.

Can I claim HRA in the new tax regime?

No. The new regime removes the HRA exemption entirely. Whether the old regime still wins for you depends on your total deductions (HRA + 80C + health insurance etc.) versus the new regime's lower slab rates.

What documents do I need to claim HRA?

Rent receipts signed by your landlord (generate them free at rent.klair.in), your rent agreement, and the landlord's PAN if annual rent exceeds ₹1,00,000.

I live with my parents — can I still claim HRA?

Yes, if you genuinely pay them rent (bank transfer strongly recommended) and they declare it as income. You'll still need receipts and, above ₹1 lakh/year, their PAN.