HRA Calculator 2026:Calculate Tax Exemption for 8 Metro Cities
Use our free HRA calculator India 2026 to find your exact tax savings. Updated for Section 10(13A) and the new 8-metro rules. Calculate HRA for Bengaluru, Pune, and Hyderabad employees.
The 2026 8-Metro Update: 50% HRA Jump for Pune, Hyderabad, Bengaluru & Ahmedabad
In a significant update for FY 2025-26, the metro list for HRA exemption has been expanded. Pune, Hyderabad, Bengaluru, and Ahmedabadāpreviously non-metro (40%)ānow qualify for 50% HRA exemption, matching Mumbai, Delhi, Kolkata, and Chennai.
If you live in Bengaluru, Pune, Hyderabad, or Ahmedabad, your HRA tax benefit just got a 25% boost. Use our HRA calculator for Bengaluru employeesāand other metrosāto see your exact exempted amount under Section 10(13A).
8 Metro Cities (50% of Basic + DA)
Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad
Non-Metro (40% of Basic + DA)
All other cities in India
HRA Exemption Section 10(13A): How It Works
HRA exemption is the minimum of three amounts:
- Actual HRA Received ā The amount your employer pays you as HRA.
- Actual Rent Paid ā 10% of (Basic + DA) ā Rent minus 10% of your salary base.
- 50% (Metro) or 40% (Non-Metro) of (Basic + DA) ā A fixed percentage based on city type.
Your exempted HRA = Min(1, 2, 3). The rest is taxable. Use our HRA calculator for old tax regime to compute this instantly.
Old vs New Tax Regime: HRA Validity
HRA exemption is only valid under the Old Tax Regime for FY 2025-26. If you opted for the New Regime (slab rates without deductions), your entire HRA is taxable. Make sure you are on the Old Regime to claim HRA exemption.
T+1 Rule for Liquid Fund Redemptions (Arbitrage Strategy)
If you use the credit card arbitrage strategy (pay rent/bills via card, park cash in liquid funds during the grace period), know the T+1 settlement rule: redemption proceeds typically credit to your bank account within one business day.
Action: Initiate redemption at least 2 working days before your card due date. Weekends and holidays don't count. Missing the date triggers 36ā48% p.a. interest on the full outstandingāone slip wipes months of profit. Always set auto-debit for the full outstanding amount.
Try Arbitrage CalculatorAudit-Proof Rent Receipts
After calculating your HRA exemption, you need compliant rent receipts to claim the benefit. FreeFuelBill.in generates audit-proof rent receipts with revenue stamp, landlord PAN field, and Form 12BB-ready format.
Generate Rent ReceiptsHRA Calculation Inputs
Section 10(13A) Ā· Old Tax Regime Ā· FY 2025-26
HRA Exemption is only valid under the Old Tax Regime for FY 2025-26. If you opted for the New Regime, HRA is taxable in full.
8 Metros: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad
Tax Saved (Annual @ 30% slab)
ā¹72,000
ā¹2,40,000 exempted Ć 30%
Download Audit-Proof Rent Receipts for this calculation
Generate Now āHRA Calculator 2026 ā FAQ
Is Bengaluru a metro for HRA in 2026?
Yes. Bengaluruāalong with Pune, Hyderabad, and Ahmedabadāis now classified as metro for HRA. All eight metros qualify for 50% of (Basic + DA) exemption.
Can I pay rent to parents?
Yes. You can claim HRA when paying rent to parents if you actually pay and they declare it as rental income. Keep bank trail and rent receipts. Rent to spouse or minor child is not eligible.
How is HRA exemption calculated under Section 10(13A)?
HRA exemption is the minimum of three amounts: (1) Actual HRA received, (2) Actual rent paid minus 10% of (Basic + DA), (3) 50% of (Basic + DA) for metro cities or 40% for non-metro.
Which cities get 50% HRA exemption in 2026?
The 8 metro cities are: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad. All other cities get 40%.
Is HRA exemption available under the New Tax Regime?
No. HRA exemption is only valid under the Old Tax Regime for FY 2025-26. If you chose the New Regime, your full HRA is taxable.
What documents do I need for HRA exemption?
Rent receipts from your landlord (with PAN if rent > ā¹1L/year), revenue stamp ā¹1 if rent > ā¹5K/month. Submit Form 12BB and receipts to your employer.
Know Your Exact HRA Tax Savings in 60 Seconds
Use our free HRA calculator India 2026 to find your exempted HRA and taxable amount. Updated for 8 metro citiesāincluding Pune, Bengaluru, and Hyderabad.
Calculate HRA ExemptionLast Updated: February 27, 2026 Ā· FreeFuelBill.in