HRA Calculator X/Y/Z Cities

Calculate your House Rent Allowance under the 7th Pay Commission for Central Government employees. Includes Section 10(13A) income tax exemption calculator for private sector employees.

30%X City HRA (DA ≥ 50%)
20%Y City HRA
10%Z City HRA
55% DACurrent Rate Jan 2026

Central Govt HRA Calculator

7th CPC HRA based on Pay Level, city classification and DA rate

Pay Level (7th CPC)
— Select Level —Level 1 – ₹18,000Level 2 – ₹19,900Level 3 – ₹21,700Level 4 – ₹25,500Level 5 – ₹29,200Level 6 – ₹35,400Level 7 – ₹44,900Level 8 – ₹47,600Level 9 – ₹53,100Level 10 – ₹56,100Level 11 – ₹67,700Level 12 – ₹78,800Level 13 – ₹1,23,100Level 14 – ₹1,44,200
Basic Pay (₹) – auto-filled or manual

City Classification
X City – 50 lakh+ populationY City – 5 to 50 lakh populationZ City – Below 5 lakh population
DA Rate (%)

Current DA: 55% (Jan 2026). HRA slab: 30%/20%/10%.
Special Conditions
Residing in Government / Departmental Accommodation (HRA = ₹0)
Transferred to new station – last drawn HRA admissible for 30 days
⚡ Calculate Government HRA
📊 Government HRA Breakdown
Basic Pay—
Dearness Allowance (DA)—
Applicable HRA Rate—
HRA (Computed at rate%)—
Minimum HRA Floor—
🏠 Monthly HRA Payable—
Annual HRA—
HRA Slab Active (DA-based)—


💼

HRA Tax Exemption Calculator

Section 10(13A) – Minimum of 3 conditions determines your tax-free HRA

Basic Salary per Month (₹)

DA per Month (₹) – if part of retirement benefit

Most private employees: enter 0
Actual HRA Received per Month (₹)

Actual Rent Paid per Month (₹)

City Type
Metro City – Delhi, Mumbai, Kolkata, Chennai (50%)Non-Metro City (40%)
Metro cities qualify for 50% of Basic+DA; others get 40%
Tax Regime
Old Regime (HRA exemption applicable)New Regime (No HRA exemption – standard deduction only)
⚡ Calculate HRA Tax Exemption
📊 Section 10(13A) HRA Exemption Breakdown
Monthly Basic + DA—
Condition 1 – Actual HRA Received—
Condition 2 – 50%/40% of Basic+DA—
Condition 3 – Rent Paid minus 10% of Basic+DA—
✅ Monthly HRA Exempt (Lowest of 3)—
📅 Annual HRA Exemption—
Monthly HRA Taxable—
Annual HRA Taxable—

HRA Rules & Rate Guide 2026

Complete reference for Central Government and private sector employees on HRA calculation and tax exemption

🏙️Current HRA Rates – X, Y, Z Cities (DA ≥ 50%)

Since DA crossed 50% in January 2026, the highest HRA slab under 7th CPC is now active for all Central Government employees.

30%
X City
Min. ₹5,400/month
Population 50 lakh+
20%
Y City
Min. ₹3,600/month
Population 5–50 lakh
10%
Z City
Min. ₹1,800/month
Population below 5 lakh
DA Trigger Rule: HRA rates are automatically revised when DA crosses 25% (→ 27%/18%/9%) and again at 50% (→ 30%/20%/10%). With DA at 55% in January 2026, all employees are on the highest HRA slab. The next revision will happen if/when DA crosses 100%.

📈HRA Revision – DA Threshold Trigger Table

The 7th CPC introduced DA-linked HRA revision in two phases. Government revised the trigger points to benefit employees earlier than originally recommended.

Minimum HRA Floor: Even at 30%/20%/10% rates, HRA shall not be less than ₹5,400 (X) / ₹3,600 (Y) / ₹1,800 (Z) per month. This floor was set at 30%/20%/10% of the minimum basic pay of ₹18,000, ensuring all employees receive a meaningful housing allowance.

📍X, Y, Z City Classification – Key Cities

Cities are classified based on the 2011 Census population data. The 7th CPC retained this classification. A few cities were upgraded when updated data became available.

📎 Download Official City Classification List (MoD PDF) →

🧮Section 10(13A) – HRA Tax Exemption Formula

For private and public sector salaried employees under the Old Tax Regime, HRA exemption is the least of these three amounts calculated on an annual basis:

1

Actual HRA received from the employer during the financial year.

2

50% of Basic+DA (if residing in Delhi, Mumbai, Kolkata or Chennai) OR 40% of Basic+DA (all other cities) — calculated annually.

3

Actual Rent Paid − 10% of Annual Basic+DA. If you pay rent below 10% of your salary, this condition gives ₹0 exemption.

4

The lowest of the three values above is your tax-exempt HRA. The remaining HRA is added to taxable income.

New Tax Regime (FY 2025-26 onwards): HRA exemption under Section 10(13A) is not available under the new default tax regime. You must opt for the old regime to claim HRA exemption. The new regime offers a flat ₹75,000 standard deduction instead.

💸Important HRA Rules at a Glance

Govt Accom

No HRA if Allotted Quarters

If residing in Government / departmental accommodation, HRA is not payable. A license fee is deducted from salary instead.

Transfer

HRA on Transfer

On transfer, the last drawn HRA is admissible for 30 days at the old station, plus the new station HRA from the date of joining. No double HRA beyond 30 days.

Leave

HRA During Leave

HRA is payable during Earned Leave, Casual Leave, and Half Pay Leave. Not payable during EOL (Extra-Ordinary Leave) without pay or suspension.

Own House

HRA for Own House

Central Govt employees residing in own house are eligible for HRA — no rent payment required. However, private sector Section 10(13A) requires actual rent payment.

Rent Receipt

PAN Required Above ₹1 Lakh

For HRA tax exemption claims where annual rent exceeds ₹1,00,000, the landlord’s PAN must be furnished to the employer mandatorily.

8th CPC

8th Pay Commission (2026)

The 8th CPC has been constituted. HRA rates are expected to be revised further. Until 8th CPC recommendations are notified, 7th CPC rates continue.

📋HRA Quick Reference – All Pay Levels (Current: DA 55%)

Monthly HRA at current DA (55%) for entry basic pay at each level. Rates: X=30%, Y=20%, Z=10% of basic.

Note: HRA is calculated on Basic Pay only (not Basic+DA) for Central Government employees under 7th CPC. The DA rate does not affect the HRA amount — only the HRA slab changes when DA crosses thresholds.
📎 7th Pay Commission – India.gov.in →

📘 How to Use the Government HRA Calculator

Select your 7th CPC Pay Level first. The calculator fills the entry Basic Pay automatically, but you can replace it with your actual current Basic Pay if you are at a later matrix stage. This is important because HRA is calculated from Basic Pay, not from gross salary.

Choose X, Y or Z city classification and enter the DA rate that applies to the salary month you are checking. The calculator uses the DA value only to decide which HRA slab is active; the HRA amount itself is calculated from Basic Pay.

If you occupy Government or departmental accommodation, select that checkbox. The calculator then sets HRA to zero and explains that the normal city-rate calculation does not apply.

For a separate check of your Basic Pay or Pay Matrix stage, use the dedicated tools before finalizing the HRA result.

🏙️ X, Y and Z City Rates Explained

The Government tab uses three city classes. X Class receives the highest rate, Y Class the middle rate and Z Class the lowest rate. At the highest DA slab shown on the page, the rates are 30%, 20% and 10% of Basic Pay.

City classification is a payroll concept. It should not be confused with the Metro/Non-Metro distinction used in the income-tax HRA exemption formula on the Private tab.

This distinction matters because an employee can be in an X-class Government city but still need a separate tax-classification check for Section 10(13A). The two systems answer different questions.

Use the HRA Calculator for payroll HRA and the HRA Tax Exemption Calculator when the objective is tax treatment.

📈 DA Thresholds and HRA Slab Changes

The calculator contains three DA-linked HRA bands. At lower DA levels it applies 24%/16%/8%, then 27%/18%/9%, and at the highest threshold it applies 30%/20%/10% for X/Y/Z cities.

A DA revision can therefore affect salary in two ways: directly through the DA amount and, when a threshold is crossed, indirectly through a higher HRA percentage.

Use the DA Calculator if you need to verify the DA component separately. For historical payroll checks, enter the DA rate that applied in that month rather than today’s rate.

When comparing two salary periods, keep Basic Pay and city class constant first and change only the DA rate. This isolates the effect of the DA-triggered HRA slab change.

💰 Minimum HRA Floor

The Government calculator compares percentage-based HRA with the minimum floor shown on the page: ₹5,400 for X, ₹3,600 for Y and ₹1,800 for Z. The payable HRA is the higher of the calculated amount and the floor.

This floor mainly affects lower Basic Pay levels. At higher levels, the percentage calculation usually exceeds the minimum amount.

The result panel displays both the calculated HRA and the floor before showing the final monthly amount. This makes it easy to see whether the percentage or the minimum guarantee is controlling the result.

Do not add the floor on top of the calculated HRA. It is a minimum comparison, not a second allowance.

🏠 Government Accommodation and Transfer Cases

The Government-accommodation checkbox is an eligibility override. Even if the city and Basic Pay would normally produce HRA, the page sets payable HRA to zero when Government accommodation is selected.

The source also includes a transfer condition. When checking a transfer, save the old-station HRA first, then calculate the new station using the same Basic Pay and DA unless another salary change occurred at the same time.

If the move also changes Transport Allowance or another location-based benefit, calculate those separately. This prevents the entire take-home difference from being attributed to HRA.

Keep the transfer order and joining date with the saved result because payroll treatment depends on the effective date of the new posting.

💼 How to Use the Private / Tax Exemption Tab

The Private tab is a separate Section 10(13A) workflow. Enter monthly Basic Salary, applicable DA, actual HRA received and actual rent paid, then select Metro or Non-Metro and the tax regime.

Under the Old Regime path, the calculator compares three conditions: actual HRA received, 50% or 40% of Basic+DA, and rent paid minus 10% of Basic+DA. The lowest value becomes the HRA exemption.

Under the New Regime path, the source calculator treats HRA exemption as unavailable. This is why the tax-regime selector can materially change exempt and taxable HRA even when salary and rent remain identical.

For a broader take-home comparison after calculating exemption, use the Gross vs Net Salary calculator.

🧮 Reading the Section 10(13A) Result

Condition 1 is actual HRA received. Condition 2 is the Metro/Non-Metro percentage of Basic+DA. Condition 3 is actual rent paid minus 10% of Basic+DA.

The exemption is the minimum of all three values. This means a high HRA component does not automatically produce a high exemption if rent is low or the city-based percentage ceiling is lower.

The calculator shows monthly exempt HRA, annual exempt HRA, monthly taxable HRA and annual taxable HRA. Keep the exempt and taxable portions separate when comparing them with payroll or Form 16.

If rent, salary or city changes during the year, calculate the periods separately rather than using one annual average.

📋 Pay Level Table and Entry Pay

The quick-reference table shows HRA at entry Basic Pay for Levels 1 through 14. It is useful for a rough comparison across levels but should not replace the live calculator when an employee has progressed to a later stage.

For example, two employees in the same pay level can have different Basic Pay because of annual increments. Their HRA will therefore differ even though the city class is the same.

Use the Pay Matrix Calculator to confirm the exact current cell, then return to this page and enter that Basic Pay manually.

This is especially important when comparing promotion, MACP or increment scenarios, where entry pay may not match the employee’s fixed Basic Pay.

🧾 Payroll and Tax Reconciliation Workflow

For Government payroll, verify Basic Pay, DA rate, city class and accommodation status first. Once monthly HRA matches, move to gross salary and deductions.

For HRA tax exemption, verify Basic+DA, HRA received, rent paid, city type and tax regime. Then compare the three conditions and the final exempt amount.

Keep payroll HRA and tax-exempt HRA as separate numbers. The amount received in salary can be different from the amount exempt from tax.

A dated calculation saved with the payslip, rent record or transfer order makes later arrears and tax review much easier.

🔭 8th Pay Commission Planning

The page includes future-looking 8th Pay Commission references, but the calculator itself is built around the current 7th CPC structure in the source. Use the existing rates as the baseline unless official new rules are reflected in the calculator.

For scenario planning, use the 8th Pay Commission Calculator separately and keep projected HRA assumptions clearly labelled.

Do not mix projected 8th CPC HRA percentages into current payroll calculations. Current salary verification should remain tied to the notified 7th CPC structure represented by this page.

When future rules are finalized, compare the old and new HRA at the same Basic Pay first to isolate the policy change.

⚠️ Common HRA Calculator Mistakes

A common mistake is entering gross salary in the Basic Pay field. Government HRA on this page is based on Basic Pay only, so including DA or allowances will overstate the result.

Another mistake is confusing X/Y/Z payroll classification with Metro/Non-Metro tax classification. These should be calculated in different tabs for different purposes.

Users may also forget to select Government accommodation, causing HRA to appear payable when the source logic would set it to zero.

For the tax tab, a frequent mistake is assuming all HRA received is exempt. The exemption is only the lowest of the three Section 10(13A) conditions under the source’s Old Regime path.

✅ HRA Verification Checklist

For Government HRA, confirm Pay Level, actual Basic Pay, city class, DA rate, accommodation status and transfer status before accepting the result.

For tax exemption, confirm Basic Salary, applicable DA, HRA received, rent paid, Metro/Non-Metro classification and tax regime.

Then review the detailed result rows rather than only the final total. The first mismatched component usually explains the difference.

Keep a dated copy with supporting salary, rent or posting records so future payroll, transfer, arrears and tax checks can be reproduced.

Frequently Asked Questions

Everything you need to know about HRA for Central Govt and private employees in 2026

What is the current HRA rate for Central Govt employees in 2026?
▾
As of January 2026, DA has reached 55%, which means the highest HRA slab under 7th CPC is active. Current rates are 30% for X cities, 20% for Y cities, and 10% for Z cities of Basic Pay. These rates will remain until the 8th Pay Commission recommendations are implemented or DA crosses the next threshold (100%) — whichever comes first. Minimum HRA is guaranteed at ₹5,400 / ₹3,600 / ₹1,800 per month.
Is HRA calculated on Basic Pay or Basic+DA for govt employees?
▾
For Central Government employees under the 7th Pay Commission, HRA is calculated on Basic Pay only — NOT on Basic+DA. For example, an employee with ₹44,900 basic in an X city gets HRA of ₹44,900 × 30% = ₹13,470/month regardless of DA. However, for private sector employees claiming Section 10(13A) tax exemption, the formula uses Basic+DA as the salary base.
How does the HRA tax exemption under Section 10(13A) work?
▾
Under Section 10(13A), HRA exemption is the least of three conditions: (1) Actual HRA received, (2) 50% of Basic+DA for metro cities or 40% for non-metro cities, and (3) Actual Rent Paid minus 10% of Basic+DA. The lowest of these three figures is tax-exempt. Any HRA above this is fully taxable as salary. This exemption is only available under the Old Tax Regime — not under the New Regime introduced from FY 2023-24 onwards.
Am I eligible for HRA if I own a house?
▾
For Central Government employees: Yes, HRA is admissible even if you own a house in the city of posting — no rent payment is required. However, if you are allotted government/departmental accommodation, HRA is not payable. For private sector employees claiming Section 10(13A) tax exemption: No, you must be paying actual rent. If you own the property you reside in, HRA is fully taxable. The property must not belong to you, your spouse, or your minor child.
Which cities are classified as X (metro) cities for HRA?
▾
Under the 7th Pay Commission, cities with a population of 50 lakh and above (2011 Census) are classified as X cities: Delhi, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Ahmedabad, Pune, and Surat. For the Section 10(13A) income tax exemption (50% rule), only Delhi, Mumbai, Kolkata, and Chennai qualify as metro cities — Hyderabad, Bengaluru, Ahmedabad, and Pune are treated as non-metro (40% rule) for tax purposes.
What happens to HRA when I get transferred to a new city?
▾
On transfer, the employee is entitled to draw HRA at the old station rate for up to 30 days after joining the new station. After 30 days, HRA becomes payable at the new station rate only. If family remains at the old station, the employee can claim HRA for the family’s location for up to 2 years (or until the family joins, whichever is earlier), subject to conditions in the transfer TA/DA rules.
What is the 8th Pay Commission’s expected impact on HRA?
▾
The 8th Pay Commission was constituted in January 2025 and is expected to submit its report by 2026 for implementation from January 2026 onwards. While final recommendations are pending, HRA under 8th CPC is widely expected to be revised upward — likely to 33–35% for X cities, 22–24% for Y cities, and 11–12% for Z cities. Until official notification, all 7th CPC rates including HRA at 30%/20%/10% continue to apply.
Is PAN of landlord compulsory to claim HRA exemption?
▾
Yes, if your annual rent paid exceeds ₹1,00,000 (i.e., more than ₹8,333/month), the landlord’s PAN number must be furnished to your employer. This is a mandatory requirement under Rule 26C of the Income Tax Rules. If the landlord does not have a PAN, a declaration in Form 60 must be provided. Failure to submit the landlord’s PAN will result in the employer not granting HRA exemption in TDS calculations.
Can I claim HRA exemption and home loan deduction simultaneously?
▾
Yes, you can claim both HRA exemption and home loan deduction under certain conditions: (1) Your owned house is in a different city from where you are employed, (2) You are actually paying rent in the city of employment, and (3) The owned house is not in the same city where you work. Both Section 10(13A) (HRA exemption) and Section 24(b) (home loan interest up to ₹2 lakh) and Section 80C (principal repayment) can be claimed simultaneously in such cases.