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No HRA in your salary? You may still get a rent deduction under Section 80GG. Try both calculations here — free, with worked examples.
Use this HRA Calculator with 80GG to find out exactly how much house rent allowance is tax-free, or how much rent deduction you can claim under Section 80GG if your salary has no HRA component. Both calculations follow current Income Tax Department rules, including the metro-city expansion that took effect this financial year.
This tool covers two related tax benefits for rent-paying individuals in India: house rent allowance exemption and the Section 80GG rent deduction. If your salary includes HRA, it works out your exemption under Section 10(13A). If it doesn't, it switches to the Section 80GG deduction instead. It's built for salaried employees, corporate and government staff, freelancers, and self-employed professionals who pay rent and want their exact tax benefit before filing.
If you receive HRA — exemption under Section 10(13A), read with Rule 2A / Rule 279 of the Income-tax Rules, 2026, is the least of:
1. Actual HRA received
2. Rent paid − 10% of salary (Basic + DA)
3. 50% of salary (metro cities) or 40% of salary (non-metro)If you don't receive HRA — deduction under Section 80GG, read with Rule 11B, is the least of:
1. ₹5,000 per month (₹60,000 per year)
2. 25% of adjusted total income
3. Rent paid − 10% of adjusted total incomeYou can claim only one of these, never both, in the same year, and both benefits are available only under the Old Tax Regime.
Case 1 — Salaried with HRA (metro city): Basic + DA = ₹30,000/month, HRA received = ₹15,000/month, rent paid = ₹20,000/month.
Lowest value = ₹15,000/month exempt (₹1,80,000/year). Taxable HRA = ₹0.
Case 2 — No HRA, using 80GG: Adjusted total income = ₹6,00,000/year, rent paid = ₹15,000/month (₹1,80,000/year).
Lowest value = ₹60,000/year deductible, since the flat cap is the smallest of the three.
The single biggest change this year: the Income-tax Rules, 2026, notified on 20 March 2026 and effective 1 April 2026, expanded the 50% "metro" HRA slab from 4 cities to 8. Bengaluru, Hyderabad, Pune, and Ahmedabad now join Delhi, Mumbai, Kolkata, and Chennai in the 50%-of-salary bracket. This applies to salary earned from FY 2026-27 onward. If you're filing your FY 2025-26 return this July, though, the old 4-city rule still applies — Bengaluru, Hyderabad, Pune, and Ahmedabad stay at 40% for that specific return. Don't apply the new 8-city rate to income earned before 1 April 2026, or your ITR could get flagged on scrutiny.
The 80GG cap and calculation method are unchanged this year: still ₹5,000/month, ₹60,000/year maximum, and Form 10BA is still mandatory before you claim it. Neither HRA exemption nor 80GG is available if you opt for the default New Tax Regime — you need the Old Regime for either. If you're unsure which regime suits you, run your numbers through Toolisky's old vs new tax regime calculator first.
No. Section 80GG is only for taxpayers who do not receive HRA at any point in the financial year. If HRA is part of your salary, even partly, you must use Section 10(13A) instead of 80GG for that year.
No. Section 80GG deductions, along with HRA exemption, are only available under the Old Tax Regime. The default New Tax Regime does not permit either benefit.
The maximum is ₹60,000 per year (₹5,000/month), but you may get less if 25% of your adjusted income or your excess rent paid is lower — whichever of the three is smallest applies.
Yes. Filing a declaration in Form 10BA is mandatory before claiming the Section 80GG deduction, confirming your rent details and that you don't own a house in your city of residence.
From FY 2026-27, eight cities qualify for the 50% rate: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad. Every other city uses the 40% non-metro rate. If you're filing your FY 2025-26 return, only the original four cities count — the expansion doesn't apply retroactively.
Yes, most employers require rent receipts (and the landlord's PAN if annual rent exceeds ₹1,00,000) to allow HRA exemption in your monthly TDS calculation. Under the old tax regime, you'll also need these on hand if your return gets picked up for verification.
If you live in Bengaluru, Hyderabad, Pune, or Ahmedabad, your city moved from the 40% non-metro bracket to the 50% metro bracket from FY 2026-27. That alone can raise your exemption ceiling even with the same basic salary and rent, though the exemption is still capped at the lowest of the three formula components.
Calculations verified by our team including CA Anita Patil. View our full accuracy policy and meet the team →
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