HRA (House Rent Allowance) Tax Exemption
Short answer
Last checked · 1 key figure from the fact register
Key facts
| Fact | Value | Source | Date checked |
|---|---|---|---|
| HRA exemption (Rule 279) | Least of HRA received, rent minus 10% of salary, and 50% (eight metros) or 40% of salary; old regime only Official source | Rule 279, Income-tax Rules, 2026 (opens in a new tab) |
What it is
HRA (House Rent Allowance) is partly exempt from tax if you live in rented accommodation. It is available under the old tax regime only (Rule 279 of the Income-tax Rules, 2026).
Who gets it
Salaried employees who receive HRA and pay rent.
How much
The least of: HRA received; rent paid minus 10% of salary; 50% of salary in the eight metro cities or 40% elsewhere. Salary means basic plus DA, if the terms of employment say so.
Eligibility
- HRA is part of your salary
- You pay rent
- You opt for the old tax regime
Value
Use the HRA calculator with your own salary, HRA and rent.
| Category | Details |
|---|---|
| Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad, Bengaluru | 50% of salary |
| Every other city | 40% of salary |
How to claim
- Submit rent receipts to your employer in the start-of-year declaration (Form 124).
- Give the landlord's PAN when the rent is high; check the form's instructions for the limit.
- Claim it in your ITR if not claimed through your employer.
Documents checklist
- Rent receipts
- Rental agreement
- Landlord PAN where required
Deadlines
Declare to your employer early in the financial year; file your ITR by 31 July.
Common mistakes
- Claiming it under the new tax regime
- Not collecting the landlord's PAN
- Paying rent to family without documents
- Using salary that includes allowances other than basic and DA
FAQ
Can I claim HRA and home loan interest together?
Yes, if you meet the conditions for both.
Official sources
Written by the PerkNavigate editorial team. Key figures checked against official sources on 16 October 2026. See how we verify perks. Information only; not financial, tax or legal advice (disclaimer). Found an error? Tell us.
Sources and status
Each figure on this page comes from the fact register. What the badges mean.
- Official sourcechecked 2026-10-16
HRA exemption is the least of (a) HRA received, (b) rent minus 10% of salary, (c) 50% of salary in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru, or 40% elsewhere. Salary is basic plus DA (if the terms say so), no other allowances. Old regime only (Schedule III, Sl. 11)
Pay levels and roles
Salary scenarios for the 8th Pay Commission, by level and by role. Every figure is a scenario, not an official number.
By pay level
Related perks
Employer NPS Contribution Tax Benefit (Section 124, formerly 80CCD(2))
Your employer's NPS contribution is deductible, even under the new tax regime.