What Is House Rent Allowance (HRA)?
HRA is a key component of a salaried employee’s income and offers valuable tax benefits under Section 10(13A) of the Income Tax Act, 1961. With rent prices rising everywhere, HRA exemptions help reduce your taxable income—making it essential for anyone living in rented accommodation.
Since more than half of India’s salaried workforce receives HRA, knowing how much of it is tax-free can lead to significant yearly savings.
What Is an HRA Calculator?
BizPillar’s HRA Calculator is an online tool that instantly tells you how much of your House Rent Allowance is exempt from tax. It uses your basic salary, DA, HRA received, rent paid, and city type (metro/non-metro) to compute the exact exemption amount.
It applies the three official rules and automatically picks the minimum value, which becomes your tax-free HRA.
HRA Calculation Rules (The 3 Values)
The exemption is the lowest of the following:
Actual HRA received
50% of salary (for metro cities) or 40% (for non-metros)
Rent paid – 10% of salary (Basic + DA)
This calculation determines how much HRA is exempt and how much becomes taxable.
How the HRA Calculator Helps
No formulas. No confusion. No manual math.
The calculator:
Shows your exempt vs. taxable HRA instantly
Helps you plan salary structure better
Ensures accurate tax declarations
Saves time while filing ITR
How the HRA Calculator Works (Example Included)
Example Inputs:
Basic Salary: ₹50,000/month
HRA Received: ₹20,000/month
Rent Paid: ₹18,000/month
City: Mumbai (Metro)
Step 1: Compute the three values
Actual HRA received → ₹20,000
50% of salary → ₹25,000
Rent – 10% of salary → ₹18,000 – ₹5,000 = ₹13,000
Step 2: Choose the minimum
→ ₹13,000 exempt per month (₹1,56,000 yearly)
Remaining ₹7,000/month becomes taxable.
BizPillar’s tool does this instantly, with zero room for error.
How to Use BizPillar’s HRA Calculator
Enter salary details: Basic salary, DA, and HRA received
Input rent & city: Actual rent paid + metro/non-metro selection
Click Calculate:
The tool applies all three rulesGet instant results:
Total exempt HRA
Taxable HRA
Annual savings
Perfect for planning investments, adjusting declarations, or filing ITR.
Advantages of BizPillar’s HRA Calculator
1. Accurate & Error-Free: Applies updated tax rules and instantly picks the correct exemption amount.
2. Saves Time & Effort: Avoid manual calculations and confusing tax formulas. Get results in seconds.
3. Maximizes Tax Savings: The tool ensures you don’t miss out on eligible exemptions and helps optimize your tax outflow.
4. Beginner-Friendly Interface: Made for everyone—employees, HR teams, tax professionals.
5. Supports Better Financial Planning: Know how much income is taxable, adjust salary structure, and plan rent declarations more effectively.
6. Free & Available Anytime: Accessible 24/7 on any device—ideal during tax season or while revising salary details.
7. Helps with ITR Filing: Accurate HRA calculations reduce filing errors and prevent penalties.