HRA Rates Chart

Complete HRA rate reference for India — 7th CPC X/Y/Z city classification for government employees and Metro/Non-Metro income tax exemption rates. Includes the landmark 2026 metro expansion update.

30%X-Class (Current)
20%Y-Class (Current)
10%Z-Class (Current)
8 Cities50% Metro FY 2026–27

HRA Rates Quick Reference

Switch between Govt employee (7th CPC) rates and Income Tax exemption rates

🏛️ 7th CPC Govt Rates (X/Y/Z)
🧾 Income Tax Exemption (Metro/Non-Metro)

Current applicable rates (DA has crossed 50% as of January 2026 — highest slab applies)

Base Slab
DA < 25%
X: 24% | Y: 16% | Z: 8%
Slab 1
DA ≥ 25%
X: 27% | Y: 18% | Z: 9%
Slab 2 NOW
DA ≥ 50% (Jan 2026)
X: 30% | Y: 20% | Z: 10%
Class X City
30%
of Monthly Basic Pay
Min: ₹5,400 / month
Class Y City
20%
of Monthly Basic Pay
Min: ₹3,600 / month
Class Z City
10%
of Monthly Basic Pay
Min: ₹1,800 / month

X Class
30%
Y Class
20%
Z Class
10%
Formula: HRA payable = MAX(Basic Pay × Applicable Rate%, Minimum Floor Amount). DA has reached 50% as of January 2026, so all Central Govt employees are now in the highest HRA slab under the 7th CPC. Next revision expected only under the 8th Pay Commission.

Applicable under Old Tax Regime — Section 10(13A) of the Income Tax Act, 1961

Metro City
50%
of Basic Salary (as Rule B)
Delhi · Mumbai · Kolkata · Chennai
+ Bengaluru, Hyderabad, Pune, Ahmedabad from FY 2026–27
Non-Metro City
40%
of Basic Salary (as Rule B)
All other cities — Noida, Gurgaon,
Navi Mumbai, Lucknow, Jaipur, etc.
Metro (50%)
50%
Non-Metro (40%)
40%
Remember: Rule B (50%/40%) is just ONE of three rules. HRA exempt = Minimum of (A) Actual HRA received, (B) 50%/40% of Basic+DA, (C) Rent paid − 10% of Basic+DA. Use our HRA Exemption Calculator for your exact figure. Available under Old Tax Regime only.

Complete HRA Rates Reference

All HRA rate slabs, city classifications, and 2026 updates in one place

🔔
Major 2026 Update: 8 Cities Now Get 50% HRA Exemption from FY 2026–27

The Draft Income Tax Rules 2026 (notified February 2026) expand the 50% HRA exemption to 4 additional cities: Bengaluru, Hyderabad, Pune, and Ahmedabad — effective from FY 2026–27 (April 1, 2026 onwards). Previously, only Delhi, Mumbai, Kolkata, and Chennai qualified for 50%. Employees in these 4 new cities can now claim 50% of Basic Salary as Rule B instead of 40%, resulting in significant tax savings. Verify with your employer/CA for official circular references before filing.

📋7th CPC HRA Rates — All DA Slabs

8th Pay Commission: A new pay commission is expected by 2026–27. HRA rates and city classifications will likely be revised afresh under the 8th CPC. Watch for official notifications on dopt.gov.in.

🏙️Metro Cities for HRA: FY 2025–26 vs FY 2026–27

✅ Original 4 Metro Cities (50%)

• Delhi (NCT)
• Mumbai (Greater Mumbai)
• Kolkata
• Chennai

Applicable since inception of HRA exemption rules under Sec 10(13A)

🔶 4 New Metro Cities from FY 2026–27

• Bengaluru (Bangalore)
• Hyderabad
• Pune
• Ahmedabad

Draft Income Tax Rules 2026 — effective April 1, 2026 (FY 2026–27)

🗺️7th CPC City Classification — X, Y, Z

Cities are classified under three tiers based on population (Census 2011) and strategic importance. Classification determines HRA rate for central government employees.

Class X Cities

HRA: 30% of Basic

Population > 50 Lakh (50 Lakhs+)
Major metro & urban agglomerations

Delhi (NCR)
Mumbai (UA)
Kolkata (UA)
Chennai (UA)
Bengaluru (UA)
Hyderabad (UA)
Ahmedabad (UA)
Pune (UA)

Class Y Cities

HRA: 20% of Basic

Population 5 Lakh – 50 Lakh
State capitals & major district hubs

Jaipur
Lucknow
Kanpur
Nagpur
Patna
Bhopal
Indore
Ludhiana
Agra
Vadodara
Surat
Visakhapatnam
Coimbatore
Kochi
Chandigarh
+others

Class Z Cities

HRA: 10% of Basic

Population < 5 Lakh
District HQs, Tier-3/4 cities, rural postings

All district HQs not in X/Y
Small towns
Rural postings
Remote areas
Cantonments (if applicable)
Note: Noida, Gurgaon (Gurugram), Faridabad, Navi Mumbai, and Thane — though part of large metro regions — are classified separately. Employees in these areas may get Delhi/Mumbai X-class HRA rates if specifically notified. Check the Ministry of Defence HRA classification list or your department’s notification.

💰HRA Amount Chart — All Classes by Pay Level

Monthly HRA payable at current rates (DA ≥ 50% slab). HRA = MAX(Basic × Rate, Minimum Floor)

📌Key HRA Rules to Remember

Rule 1

No Govt Accommodation

HRA is not payable if government accommodation is allotted. Employees who have been allotted quarters but refuse to vacate also lose HRA eligibility.

Rule 2

Minimum Floor Guarantee

Even if calculated HRA is lower, the government guarantees a minimum of ₹5,400 / ₹3,600 / ₹1,800 for X/Y/Z cities under 7th CPC.

Rule 3

DA-Linked Revision

Govt HRA rates are automatically revised when DA crosses 25% and 50%. No separate order needed — the rate change is pre-notified in the 7th CPC OM.

Rule 4

Transfer & City Change

If transferred to a different class city, HRA changes from the date of joining at the new station. No HRA is paid during transit period if free transport is provided.

Rule 5

Rent-Free Accommodation

If employer provides rent-free/subsidised accommodation (private sector), the perquisite value is taxed instead. HRA exemption is not applicable in this case.

Rule 6

PAN Mandatory Above ₹1L

For HRA tax exemption claims, if annual rent exceeds ₹1,00,000, the landlord’s PAN must be submitted to the employer for Form 12BB and Form 16 purpose.

📘 How to Read the HRA Rates Chart

Start by choosing which framework you need. The Government tab is for Central Government payroll HRA under the source page’s 7th CPC X/Y/Z structure. The Tax tab is for the separate Metro/Non-Metro ceiling used inside the HRA exemption formula.

For Government payroll, first confirm the employee’s actual Basic Pay, then identify the city class and applicable DA slab. The final monthly HRA is the higher of the percentage calculation and the minimum floor shown on the page.

For tax exemption, the 50%/40% city percentage is only one of three limits. The final exempt HRA is still the lowest of actual HRA received, the city percentage of salary, and rent paid minus 10% of salary.

Keeping these two frameworks separate avoids the most common mistake on HRA pages: treating Government X/Y/Z payroll rates as though they were the same thing as income-tax Metro/Non-Metro rules.

🏛️ Government X/Y/Z HRA in Practical Use

The X/Y/Z chart is best used as a payroll reference. X Class has the highest percentage, Y Class the middle percentage and Z Class the lowest percentage under the active source scenario.

Once the city class is known, multiply the employee’s actual Basic Pay by the applicable percentage. Then compare that amount with the minimum floor for the class. The page’s formula uses the higher of the two.

If you need to locate the correct Basic Pay cell first, use the Pay Matrix Calculator. This is especially important after increments or promotion because entry pay and current pay can differ substantially.

For a live calculation rather than a static chart, use the HRA Calculator after confirming the class and DA slab from this page.

📈 Why the DA Slab Matters

The source chart shows three HRA percentage bands linked to DA thresholds. This means DA can affect HRA indirectly by changing which percentage slab is active.

A salary revision that raises DA without crossing a trigger increases DA itself but may leave HRA unchanged. When a trigger is crossed, both DA and HRA can change in the same payroll period.

Use the DA Calculator when checking the DA component separately, and preserve the effective date of any threshold crossing for arrears work.

Historical salary should be reconstructed with the HRA slab that applied during that period rather than today’s highest slab.

💰 Minimum HRA Floors

The source page lists minimum monthly HRA floors of ₹5,400 for X Class, ₹3,600 for Y Class and ₹1,800 for Z Class. These floors act as guarantees when the percentage result is lower.

The floor is most relevant at lower Basic Pay values. At higher levels, the percentage calculation normally exceeds the minimum.

The sample amount table helps illustrate this relationship by showing entry Basic Pay at selected levels together with X, Y and Z monthly HRA.

Do not add the floor on top of the calculated HRA. The correct operation is a comparison: payable HRA equals the greater of the calculated amount and the floor.

🏙️ Metro vs Non-Metro Tax HRA

The Tax tab is not a payroll-rate calculator. It shows the city percentage used as one condition inside Section 10(13A) HRA exemption.

The source presents a 50% Metro ceiling and a 40% Non-Metro ceiling. Even where the 50% figure applies, the final exemption can still be lower if actual HRA received or rent-minus-10% is the limiting amount.

Use the HRA Tax Exemption Calculator to evaluate all three conditions together. The rate chart alone cannot determine the final tax-free amount.

If salary, rent or city changes mid-year, split the year into separate periods instead of using one annual average.

🗺️ How to Use the City Classification Grid

The X, Y and Z city cards provide a quick visual reference. X cities are the highest class in the source list, Y cities cover a broad middle tier, and Z applies to other smaller or unlisted locations.

When a nearby city is part of a large urban region, do not assume it automatically inherits the metro city’s payroll classification. The source itself notes that some neighboring locations need specific notification.

Use the city cards as a navigation aid and keep the relevant departmental order when payroll depends on a special extension or reclassification.

A transfer comparison should record both the old and new city class with the same Basic Pay so the HRA effect of location can be isolated cleanly.

📊 Using the Pay-Level HRA Amount Table

The pay-level amount table is a quick reference built from selected entry Basic Pay values. It is useful for rough comparisons across levels but it is not a substitute for an employee’s actual current matrix stage.

Two employees in the same level can receive different HRA if they are at different stages. This is why Basic Pay should be verified before applying the chart percentage.

The table also makes the X/Y/Z relationship easy to see: at the same Basic Pay, X HRA is highest, Y is lower and Z is lowest under the current source slab.

For salary planning after promotion or increment, calculate the new Basic Pay first and then apply the HRA rate rather than relying on the old level’s sample row.

🔄 Transfer and City-Change Workflow

Before a transfer, save the current Basic Pay, city class and HRA amount. Then calculate the new city class using the same Basic Pay unless the transfer also changes pay.

If the posting also affects Transport Allowance, special-duty allowance or Government accommodation, calculate those changes separately. Otherwise the entire take-home difference may be incorrectly attributed to HRA.

Keep the joining date and effective HRA date with the comparison. Arrears depend on when the new class or rate actually became applicable.

For retrospective HRA corrections spanning multiple months, use the HRA Arrears Calculator so each period can keep its own rate and class.

⚖️ HRA Rates vs HRA Exemption

Government HRA and tax-exempt HRA are different numbers. Government HRA answers how much allowance is paid through payroll. HRA exemption answers how much of HRA received can be excluded from taxable salary.

An employee can therefore receive HRA at one percentage and have only part of that amount exempt for tax purposes. This is not a contradiction; the two calculations are governed by different frameworks in the source page.

When reviewing total salary, use the Gross vs Net Salary guide after HRA is known. When reviewing income tax, move from the chart to the full HRA exemption formula.

Keeping the payroll and tax worksheets separate makes reconciliation with payslip and Form 16 much easier.

🔭 Future HRA Changes and 8th CPC

The source contains future-looking 8th CPC references, but the static rate chart itself is built around the 7th CPC structure shown on the page.

Use the 8th CPC Salary Calculator for scenario planning and keep projected HRA assumptions clearly labelled as projections.

Current payroll checks should remain tied to the rates actually reflected in the applicable HRA chart and departmental instructions rather than mixing projected future percentages into present salary.

When new rates are eventually introduced, compare old and new HRA at the same Basic Pay first to isolate the policy impact.

⚠️ Common HRA Rate Chart Mistakes

A common mistake is using gross salary instead of Basic Pay for Government HRA. The source chart applies its X/Y/Z percentage to Basic Pay.

Another mistake is confusing a 50% Metro tax ceiling with a 50% payroll HRA rate. The Government chart and income-tax chart are separate systems.

Users may also ignore the minimum floor or apply the current highest DA-linked slab to older salary periods when a lower slab was actually in force.

Finally, proposed future city reclassifications should be kept separate from currently applied payroll treatment until the relevant source status changes.

✅ HRA Rate Verification Checklist

Confirm whether you are checking Government payroll or tax exemption. Then verify Basic Pay, city class, DA slab and minimum floor for payroll HRA.

For tax exemption, verify HRA received, Basic+DA, rent paid, Metro/Non-Metro treatment and the full three-condition formula.

If the result differs from payroll or tax records, find the first mismatched input rather than adjusting the final amount manually.

Save the final working with a date, city and supporting salary document so future transfer, arrears and tax reconciliation can be reproduced.

📌 Practical HRA Rate Audit

Use this chart as the first checkpoint in an HRA audit. Confirm the employee’s Basic Pay, duty station and relevant period, then identify the correct Government city class and DA-linked rate before calculating the monthly amount.

If the payslip shows a different HRA, compare the minimum floor, transfer date, accommodation status and any special departmental notification. A mismatch at one of these steps can explain the difference even when the headline percentage looks correct.

For tax review, move to the Metro/Non-Metro framework separately and calculate all three Section 10(13A) conditions. The payroll amount received and the amount exempt from tax can legitimately be different.

Keep a dated copy of the chart assumptions with the payslip or tax working. That record is useful when reconstructing arrears, checking a transfer, comparing a future pay revision or reviewing Form 16 at year end.

When comparing two cities, hold Basic Pay and DA constant and change only the city class. This isolates the pure HRA effect of location and avoids mixing a transfer with an increment or promotion.

For historical checks, write the month beside each rate used. That simple step prevents a current HRA slab from being applied to an older period when a lower slab may have been in force.

This period-by-period method is especially useful when payroll corrections are issued late, because it keeps the source rate, effective date and resulting HRA amount traceable.

Frequently Asked Questions

Quick answers on HRA rates, city classification, and 2026 changes

What is the current HRA rate for central government employees in 2026?
▾
As of January 2026, DA has crossed 50%, triggering the highest slab under the 7th CPC. Current HRA rates are: X Class cities: 30%, Y Class cities: 20%, and Z Class cities: 10% of monthly basic pay. Minimum floors of ₹5,400, ₹3,600, and ₹1,800 apply respectively. These rates were auto-revised as per the 7th CPC Office Memorandum dated July 7, 2017.
Which cities are Class X, Y, Z under 7th CPC?
▾
Under the 7th CPC: Class X (30% HRA): Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune — all urban agglomerations with 50 lakh+ population. Class Y (20% HRA): Cities with 5–50 lakh population including Jaipur, Lucknow, Kanpur, Nagpur, Patna, Surat, Chandigarh, Coimbatore, Kochi, Indore, Bhopal, etc. Class Z (10% HRA): All remaining towns and rural postings below 5 lakh population.
What is the difference between 7th CPC HRA and Income Tax HRA?
▾
These are two separate frameworks. 7th CPC HRA is what the government actually pays to central government employees (30%/20%/10% of basic pay based on X/Y/Z city class). Income Tax HRA exemption (Sec 10(13A)) determines how much of any HRA received (from any employer) is tax-free — calculated as minimum of 3 rules using 50%/40% for Metro/Non-Metro. A private sector employee receives HRA as per their CTC and claims tax exemption based on the 3-rule formula.
Will HRA rates increase under the 8th Pay Commission?
▾
Yes, HRA rates are expected to be revised under the 8th Pay Commission. The 7th CPC had revised rates upward from 6th CPC levels. Typically, new pay commissions revise city classifications, HRA percentages, and minimum floor amounts. The 8th Pay Commission was constituted in 2025 and its recommendations are expected by 2026–27. Monitor dopt.gov.in for official updates.
Are Noida, Gurgaon, and Navi Mumbai in Class X or Y for govt HRA?
▾
Noida, Gurgaon (Gurugram), Faridabad, and Ghaziabad are part of the Delhi NCR urban agglomeration but are not always automatically classified as X class on their own. However, the Ministry of Defence and other departments have specifically notified that Central Govt employees posted in Faridabad, Ghaziabad, NOIDA, and Gurgaon are entitled to Delhi (X class) HRA rates. Check your specific department’s HRA classification order. Similarly, Navi Mumbai and Thane employees may be entitled to Mumbai (X class) rates.
From when do Bengaluru, Hyderabad, Pune and Ahmedabad get 50% HRA exemption?
▾
According to the Draft Income Tax Rules 2026 notified in February 2026, Bengaluru, Hyderabad, Pune, and Ahmedabad are proposed to be classified as “Metro” cities for HRA tax exemption purposes, enabling employees in these cities to claim 50% of Basic Salary as Rule B (up from 40%). This change is effective from FY 2026–27 (April 1, 2026 onwards). Employees should inform their employers via Form 12BB to update HRA computation from April 2026. Confirm via official CBDT circular before filing.
Disclaimer: HRA rates and city classifications are subject to change via government notifications. Always verify current rates with your DDO/PAO (for government employees) or CA/employer (for private sector). For official 7th CPC HRA rules, refer to Department of Expenditure. For income tax HRA rules, visit Income Tax India Portal.