HRA Calculator

HRA Calculator – Calculate House Rent Allowance Exemption

House Rent Allowance (HRA) is a key component of your salary that helps you reduce your taxable income if you live in a rented house. But how much of your HRA is exempt from tax? Use the LegalBabu HRA Calculator to quickly estimate your HRA exemption under the Income Tax Act.

Just enter your salary details, HRA received, rent paid, and city category — and our calculator will show your maximum eligible exemption instantly.

How Does the HRA Calculator Work?

To compute your HRA exemption, the calculator compares three values and picks the least of them:

1. Actual HRA received
2. Rent paid minus 10% of Basic Salary
3. Percentage of basic salary depending on city (50% for metro / 40% for non-metro)

The lowest of these is considered as HRA exempt from tax.

How to Use the LegalBabu HRA Calculator

1. Enter Basic Salary – Your basic pay per year
2. Enter HRA Received – Total HRA received in the year
3. Enter Rent Paid – Rent you actually paid
4. Select Your City Type – Metro or Non-Metro
5. Click Calculate – Get your HRA Exemption instantly

You’ll see:

• Total HRA received
• Exempt HRA amount
• Taxable portion of HRA

Example Output

(Illustrative figures for example only.)

Why Use LegalBabu’s HRA Calculator?

• Helps determine accurate HRA exemption
• Saves time from manual calculation
• Ensures compliance with Income Tax rules
• Ideal for salaried employees
• Easy and fast to use