HRA Calculator India 2025-26: Metro vs Non-Metro
Calculate HRA exemption under Section 10(13A), taxable HRA, rent paid minus 10% of basic, and 50% metro vs 40% non-metro salary rules for India.
HRA Calculator India: Metro vs Non-Metro Exemption
✅ Updated: February 2026 | FY 2025-26 RulesEstimate HRA exemption under Section 10(13A), taxable HRA, rent paid minus 10% of basic, and 50% metro vs 40% non-metro salary rules.
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Tax Savings Calculator
Calculate exact tax savings based on your income tax slab
Enter Your Details
Your monthly basic salary (not gross salary)
HRA amount received from employer per month
Actual rent paid per month for rented accommodation
Select your income tax slab to calculate approximate tax savings
What is HRA (House Rent Allowance)?
House Rent Allowance (HRA) is a component of salary provided by employers to employees to cover their rental accommodation expenses. Under Section 10(13A) of the Income Tax Act, a portion of HRA is exempt from tax, making it a valuable tax-saving component of your salary structure.
💡 Key Features:
- Tax exemption under Section 10(13A) of Income Tax Act
- Available only under Old Tax Regime (not in New Tax Regime)
- Calculated as minimum of three amounts
- Higher exemption for metro cities (50% vs 40% of basic)
- Requires actual rent payment and proper documentation
- Must be living in rented accommodation (not own house)
HRA Exemption by City Type (FY 2025-26)
| City Category | Cities | HRA Rule | Example (₹40K Basic) |
|---|---|---|---|
| Metro | Mumbai, Delhi, Kolkata, Chennai | 50% of Basic | ₹20,000/mo max |
| Non-Metro | Bengaluru, Hyderabad, Pune, Ahmedabad | 40% of Basic | ₹16,000/mo max |
| Non-Metro | All other towns & cities | 40% of Basic | ₹16,000/mo max |
*Note: Bengaluru, Hyderabad, Pune are non-metro for HRA purposes despite being major cities. Only Mumbai, Delhi, Kolkata, Chennai = metro (50%).
HRA Exemption Calculation Formula (Section 10(13A))
The HRA exemption is calculated as the LEAST of the following three amounts:
Amount 1: Actual HRA received from employer
Amount 2: Rent paid MINUS 10% of Basic Salary
Amount 3:
- 50% of Basic Salary (for Metro cities: Mumbai, Delhi, Kolkata, Chennai)
- 40% of Basic Salary (for Non-Metro cities: All other cities)
HRA Exemption = MINIMUM(Amount 1, Amount 2, Amount 3)
Frequently Asked Questions
Disclaimer: This calculator provides an estimate based on Section 10(13A) of Income Tax Act and current rules as of 2025. Actual HRA exemption may vary based on individual circumstances, employer policies, and Income Tax Department assessment. For exact calculation and tax planning, consult your HR department or a tax professional. This calculator is for informational purposes only and should not be considered as financial or legal advice.
Use this HRA calculator for India to estimate house rent allowance exemption under Section 10(13A). Enter basic salary, HRA received, rent paid, and metro or non-metro status to compare the three HRA limits and estimate exempt HRA, taxable HRA, and tax-savings context.
Affiliates: Contextual offers only; no pop-ups. Disclosures apply where shown.
About HRA Calculator India 2025-26: Metro vs Non-Metro
Use this HRA calculator for India to estimate house rent allowance exemption under Section 10(13A). Enter basic salary, HRA received, rent paid, and metro or non-metro status to compare the three HRA limits and estimate exempt HRA, taxable HRA, and tax-savings context.
✅ Common Use Cases
- Calculate HRA exemption for old-regime tax planning
- Determine taxable HRA when rent or HRA changes
- Compare metro vs non-metro exemption rules
- Plan salary structure and rent declaration before payroll cutoff
💡 Key Benefits
- Automatic least-of-three HRA calculation
- 50% metro and 40% non-metro rule context
- Exempt HRA and taxable HRA breakdown
- Educational estimate; final claim depends on rent proof and tax regime
🔬 How HRA Calculator India 2025-26: Metro vs Non-Metro Works
📐 Formula
HRA Exemption (Section 10(13A)): Section 10(13A) of Income Tax Act. Metro cities: Delhi, Mumbai, Kolkata, Chennai (50%). Non-metro: 40% of basic. Must pay actual rent and maintain rent receipts. Cannot claim if living in own house.
Variables:
- Rule 1: Actual HRA received from employer
- Rule 2: 50% of basic (metro) / 40% (non-metro)
- Rule 3: Rent paid minus 10% of basic salary
📋 Step-by-Step Calculation Process
Worked Example (Mumbai - Metro)
Basic: ₹50,000/mo. HRA: ₹25,000/mo. Rent: ₹20,000/mo
Rule 1
Actual HRA = ₹25,000
Rule 2
₹50,000 × 50% = ₹25,000
Rule 3
₹20,000 − (₹50,000 × 10%) = ₹15,000
Exemption
LEAST = ₹15,000/mo = ₹1,80,000/year. Taxable HRA = ₹25,000 − ₹15,000 = ₹10,000/mo
⌨️ Understanding Input Fields
Monthly basic (not CTC or gross salary)
Actual HRA component in salary slip
Monthly rent per rent agreement/receipts
Metro = 50%, Non-metro = 40% rule
5%/10%/20%/30% to compute tax saving
📊 Understanding Your Results
Key Rules: Metro cities: Delhi, Mumbai, Kolkata, Chennai. Non-metro: 40% of basic (all other cities). Must pay actual rent + have rent receipts. Cannot claim if living in own house. HRA exemption only under Old Tax Regime.
Key Metrics Explained:
- HRA Exemption (Monthly/Annual): Tax-free HRA amount. Goes directly to reducing taxable income. Maximum possible = least of 3 amounts.
- Taxable HRA: HRA received MINUS exemption. Added to your taxable income and taxed at your slab rate.
- Tax Saved: Annual exemption × your tax slab.
What to Do Next:
- Enter in India Income Tax Calculator to see full tax picture with all deductions
- Use Salary Calculator to see in-hand impact
- Check with HRA section under old vs new regime
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