HRA Calculator 2025-26
Calculate your House Rent Allowance (HRA) tax exemption for FY 2025-26. Compare metro vs non-metro rates and maximize your tax savings on rental expenses.
Metro cities allow 50% of basic salary exemption, non-metro cities allow 40%
HRA Tax Exemption
₹1.32 L
Tax Savings: ₹39.60 K
Exempted Amount
₹1.32 L
Taxable HRA
₹1.08 L
HRA Exemption Calculation
Calculation Breakdown
HRA Exemption Rules
HRA Exemption Rules
- Exemption is minimum of three calculations
- Metro cities: 50% of basic salary limit
- Non-metro cities: 40% of basic salary limit
- Rent minus 10% of basic salary
Important Notes
- Rent receipts required for claims above ₹1 lakh
- PAN of landlord needed for rent above ₹1 lakh/month
- Only available in old tax regime
- Cannot claim if you own house in same city
Tax Planning Tips
Optimization Tips
- Negotiate higher basic salary component
- Maintain proper rent receipts and agreements
- Consider renting in metro cities for higher exemption
- Pay rent equal to or more than 10% of basic
Documentation Required
- Rent agreement copy
- Monthly rent receipts
- Landlord's PAN (if rent > ₹1L/month)
- Bank statements showing rent payments
HRA Exemption Calculation Formula
Step 1: Actual HRA Received
The total HRA amount received from your employer during the financial year.
Step 2: Percentage of Basic Salary
Maximum allowable exemption based on your city type and basic salary.
Step 3: Rent Minus 10% Basic
Actual rent paid minus 10% of your basic salary for the year.
Final HRA Exemption
Minimum of the three amounts calculated above
Metro vs Non-Metro City Classification
Metro Cities (50% Exemption)
Delhi
National Capital Territory
Mumbai
Financial Capital of India
Kolkata
Cultural Capital of India
Chennai
Detroit of India
Non-Metro Cities (40% Exemption)
All cities except Delhi, Mumbai, Kolkata, and Chennai
And many more...
HRA Tax Planning Strategies
Optimize Salary Structure
- • Negotiate higher basic salary component
- • Ensure HRA is included in salary structure
- • Balance basic vs allowances ratio
- • Consider metro posting for higher exemption
Documentation Management
- • Maintain proper rent receipts
- • Get landlord's PAN for high rents
- • Keep rental agreement updated
- • Digital payment proof preferred
Strategic Planning
- • Plan rent amount strategically
- • Consider joint rental with spouse
- • Time rental agreements properly
- • Coordinate with other tax benefits
Financial Calculator FAQs
Everything you need to know about income tax calculations
Need More Help?
Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.
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