What are the metro cities for HRA in India 2026?

From FY 2026-27, the 8 metro cities for HRA exemption (50% of basic) are: Delhi, Mumbai, Kolkata, Chennai, Bengaluru (Bangalore), Hyderabad, Pune, and Ahmedabad. Budget 2025 added Bengaluru, Hyderabad, Pune, and Ahmedabad to the original 4 metros. All other Indian cities use the 40% non-metro rate.

What is the difference between X, Y, Z class cities and metro for HRA?

X/Y/Z classification applies to central government employees and determines how much HRA they receive (X=24%, Y=16%, Z=8% of basic). Section 10(13A) metro/non-metro classification applies to all salaried employees and determines maximum HRA tax exemption (50% metro, 40% non-metro). These are separate frameworks - X-class cities are typically (but not always) the same as Income Tax Act metros.

Are NCR cities like Noida, Gurgaon, Faridabad metros for HRA?

No. NCR is a planning concept under the NCR Planning Board Act, not a tax classification. Section 10(13A) only includes Delhi (NCT) as metro within NCR. Noida, Greater Noida, Gurgaon (Gurugram), Faridabad, Ghaziabad, Sonipat - all are non-metro at 40%.

Is the new tax regime affected by city classification?

No. The new tax regime does not allow HRA exemption regardless of city. City classification (metro 50% vs non-metro 40%) only matters under the old tax regime. If you have chosen the new regime, your city's metro status has no impact on your tax.

How do I check my city's HRA classification?

Check our complete table on this page. If your city is one of the 8 named metros (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad), use the 50% rate. Otherwise, the 40% non-metro rate applies. For specific cities with edge cases (Navi Mumbai, Thane, Greater Noida, NCR satellites), see our city-specific guides linked below.

HRA City Classification India 2026

Quick Lookup

For Income Tax HRA exemption (Section 10(13A)):

50% Metro Rate: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad
40% Non-Metro Rate: All other Indian cities (Noida, Gurgaon, Jaipur, Lucknow, Surat, Indore, Chandigarh, etc.)

Section 10(13A) Metro Cities (50% Rate) - FY 2026-27

Budget 2025 expanded the HRA metro list from 4 to 8 cities. The 50% of basic salary rate applies in these cities under the old tax regime.

City	State / UT	Status	Coverage Area
Delhi	NCT of Delhi	Original metro	NCT only (Noida, Gurgaon, Faridabad excluded)
Mumbai	Maharashtra	Original metro	BMC area only (Navi Mumbai, Thane separate)
Kolkata	West Bengal	Original metro	KMC + Salt Lake + New Town + Howrah
Chennai	Tamil Nadu	Original metro	GCC area (OMR up to Sholinganallur, Tambaram, Avadi)
Bengaluru (Bangalore)	Karnataka	Added FY 2026-27 (Budget 2025)	BBMP area (Whitefield, Electronic City, Sarjapur all included)
Hyderabad	Telangana	Added FY 2026-27 (Budget 2025)	GHMC area + HITEC City + Gachibowli
Pune	Maharashtra	Added FY 2026-27 (Budget 2025)	PMC + PCMC (includes Hinjewadi, Wakad, Baner)
Ahmedabad	Gujarat	Added FY 2026-27 (Budget 2025)	AMC area

Important transition note: If you are filing ITR for FY 2025-26 (July 2026 deadline), only the original 4 metros (Delhi, Mumbai, Kolkata, Chennai) qualify at 50%. The expansion to 8 metros applies to salary earned from 1 April 2026 onwards (FY 2026-27 filing).

Non-Metro Cities (40% Rate) - All Other Indian Cities

Every Indian city not in the 8-metro list above uses the 40% rate. Selected high-search cities:

City	State	Why Non-Metro
Noida	UP	NCR but in UP, not Delhi NCT
Greater Noida	UP	Same district as Noida, UP
Gurgaon (Gurugram)	Haryana	NCR but in Haryana
Faridabad	Haryana	NCR but in Haryana
Ghaziabad	UP	NCR but in UP
Navi Mumbai	Maharashtra	NMMC, separate from BMC Mumbai
Thane	Maharashtra	TMC, separate from BMC Mumbai
Kalyan-Dombivli	Maharashtra	KDMC, MMR but separate civic body
Panvel (Kharghar, Kamothe)	Maharashtra	Raigad district, PMC + CIDCO
Jaipur	Rajasthan	Not in metro list
Lucknow	UP	Not in metro list
Kanpur	UP	Not in metro list
Surat	Gujarat	Not in metro list (only Ahmedabad in Gujarat)
Indore	MP	Not in metro list
Bhopal	MP	Not in metro list
Chandigarh	UT	Not in metro list
Coimbatore	Tamil Nadu	Only Chennai metro in Tamil Nadu
Kochi (Cochin)	Kerala	Not in metro list
Thiruvananthapuram	Kerala	Not in metro list
Visakhapatnam	Andhra Pradesh	Not in metro list
Patna	Bihar	Not in metro list
Bhubaneswar	Odisha	Not in metro list

If your city is not listed above, it is non-metro. The 40% rate applies to virtually all Indian cities except the 8 named metros.

X / Y / Z Class Cities (Central Government Employees Only)

The 7th Central Pay Commission classifies cities for central government HRA payouts. This is a separate framework from Section 10(13A) and only affects how much HRA you receive (as part of salary), not your tax exemption.

Class	HRA Rate	Population Threshold	Examples
X-class	24% of basic	50 lakh+	Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad
Y-class	16% of basic	5-50 lakh	Lucknow, Kanpur, Jaipur, Surat, Indore, Coimbatore, Kochi, Patna, Panvel, Dombivli, etc.
Z-class	8% of basic	Below 5 lakh	Smaller district towns, tehsils, villages

Key clarification: X/Y/Z is what central government employees receive as HRA in their pay packet. Section 10(13A) is what private and government employees both use to calculate tax exemption on HRA. The two systems happen to align broadly (X-class cities are mostly the 8 metros), but they are administered separately.

Detailed City-Specific Guides

For city-specific edge cases (boundary rules, sub-areas, transition between FY 2025-26 and FY 2026-27), see our dedicated guides:

HRA City Classification India 2026 - Complete Metro List

Quick Lookup

Section 10(13A) Metro Cities (50% Rate) - FY 2026-27

Non-Metro Cities (40% Rate) - All Other Indian Cities

X / Y / Z Class Cities (Central Government Employees Only)

Detailed City-Specific Guides

Metro Cities (50%)

Non-Metro Cities (40%)

Calculate Your HRA Exemption

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