Is Bangalore a metro city for HRA exemption?

Yes. Bangalore (Bengaluru) was added to the HRA metro list in Budget 2025 and qualifies as a metro city for HRA from FY 2026-27 onwards. The 50% of basic salary rate applies. For FY 2025-26 (the current ITR filing year ending July 2026), Bangalore is still treated as non-metro at 40%.

Is Bangalore considered a metropolitan city under the Income Tax Act?

Under Section 10(13A) of the Income Tax Act, Bangalore is now classified as a metropolitan city for HRA purposes from FY 2026-27. Earlier, only Delhi, Mumbai, Kolkata and Chennai were metros for HRA. Budget 2025 added Bengaluru, Hyderabad, Pune and Ahmedabad to the list.

What HRA percentage applies in Bangalore?

From FY 2026-27, Bangalore employees can claim 50% of basic salary as HRA exemption (subject to the standard three-condition test). For FY 2025-26 the older 40% non-metro rate applies — so check which financial year your ITR covers before calculating.

Is Bangalore the same as Bengaluru for HRA rules?

Yes. Bengaluru is the official name; Bangalore is the legacy name. Both refer to the same city and are treated identically by the Income Tax Department for HRA classification.

Does the metro classification apply only to Bangalore city limits?

The classification applies to Bangalore Urban district as defined by the BBMP. Surrounding areas like Whitefield, Electronic City, Hoskote, Devanahalli that fall under BBMP jurisdiction qualify. Areas outside BBMP (purely rural Bangalore Rural district) follow the 40% non-metro rate.

Is Bangalore a Metro City for HRA? Yes — 50% Rate from FY 2026-27

Quick Answer

Yes — Bangalore (Bengaluru) is a metro city for HRA from FY 2026-27. The 50% of basic salary rate applies for HRA exemption under Section 10(13A).

Important transition: If you are filing the FY 2025-26 ITR (deadline 31 July 2026), the older 40% non-metro rate still applies because the change was notified in Budget 2025 effective FY 2026-27 onwards. The 50% rate only affects salary income earned from 1 April 2026.

What This Means for Your HRA Exemption

Worked example: a software engineer in Whitefield with ₹50,000 monthly basic salary, ₹25,000 HRA in their CTC, and ₹22,000 monthly rent.

Condition	FY 2025-26 (40%)	FY 2026-27 (50%)
1. Actual HRA received (annual)	₹3,00,000	₹3,00,000
2. Rent paid − 10% of basic	₹2,04,000	₹2,04,000
3. % of basic (Bangalore-specific)	₹2,40,000 (40%)	₹3,00,000 (50%)
HRA exempt (least of 3)	₹2,04,000	₹2,04,000

In this example the metro change does not increase the exemption because Condition 2 (rent − 10% of basic) is the binding constraint. The 50% metro rate only matters when rent is high enough that Condition 3 caps the exemption — typically when monthly rent is ≥35–40% of basic.

For a high-rent example: ₹50,000 basic, ₹25,000 HRA, ₹35,000 rent (premium 2BHK in Indiranagar):

FY 2025-26 (40% non-metro): exemption capped at ₹2,40,000
FY 2026-27 (50% metro): exemption rises to ₹3,00,000 — that is ₹60,000 more deduction, worth ₹18,720 in tax saved at the 30% slab plus cess

The 8 Metro Cities for HRA (FY 2026-27)

Budget 2025 expanded the metro list from 4 to 8 cities, all eligible for the 50% HRA exemption rate:

Mumbai, Maharashtra
Delhi (NCT)
Kolkata, West Bengal
Chennai, Tamil Nadu
Bengaluru (Bangalore), Karnataka — added FY 2026-27
Hyderabad, Telangana — added FY 2026-27
Pune, Maharashtra — added FY 2026-27
Ahmedabad, Gujarat — added FY 2026-27

All other cities — including Noida, Gurgaon, Jaipur, Thane, Lucknow, Surat, Indore, Chandigarh, Coimbatore, Nagpur — continue at the 40% non-metro rate.

Bangalore-Specific Notes

Whitefield, Electronic City, Hebbal — all metro

If you live anywhere within BBMP (Bruhat Bengaluru Mahanagara Palike) limits — including the IT corridor zones of Whitefield, Marathahalli, Electronic City, Hebbal, Yelahanka, Sarjapur — you qualify for the metro 50% rate. The classification is city-administrative, not based on neighbourhood.

Bangalore Rural is non-metro

Areas in Bangalore Rural district (Hoskote, Devanahalli outside BBMP, Doddaballapur) outside BBMP jurisdiction continue to be classified as non-metro at 40%. If you commute into the city but live in a rural panchayat, the 40% rate applies to your HRA.

Why Bangalore was added

The original 4-metro list was created in 1986 and not updated for four decades despite Bangalore's population crossing 1 crore and overtaking Chennai and Kolkata in cost-of-living indices. Budget 2025 corrected this lag for 4 cities including Bengaluru.

How to Claim HRA in Bangalore

Rent receipts — monthly receipts signed by the landlord, with stamp if rent exceeds ₹3,000/month.
Rent agreement — registered if monthly rent is over ₹15,000 (not mandatory by Income Tax, but required by some employers).
Landlord PAN — mandatory if annual rent exceeds ₹1,00,000 (₹8,333/month). If landlord has no PAN, file Form 60 with employer.
Bank transfer proof — pay rent by NEFT/UPI, never cash. ITR scrutiny rejects cash-paid rent receipts almost automatically.
Form 12BB — submit to employer at the start of each financial year and update if rent changes.

Frequently Asked Questions

Is Bangalore a metro city for HRA right now?

It depends on which financial year you are calculating for. For HRA on FY 2026-27 salary (April 2026 onwards), Bangalore is metro at 50%. For FY 2025-26 ITR (filed July 2026), Bangalore is still non-metro at 40%.

Should I update my HRA declaration to my employer in Bangalore?

Yes — for FY 2026-27 declarations (made April–May 2026), recompute your projected HRA exemption with the 50% rate and update Form 12BB. Your employer will deduct lower TDS once they apply the higher exemption.

Does the metro change apply to old tax regime only or new regime too?

The metro reclassification applies to old tax regime only. The new tax regime does not allow HRA exemption at all. So this only matters if you have opted for the old regime for FY 2026-27.

Is Bengaluru and Bangalore the same for income tax?

Yes. Both names refer to the same city. The Income Tax Department uses both interchangeably. Your Form 16 may show either spelling — neither affects your HRA classification.

What if I moved from Bangalore to Pune mid-year in FY 2026-27?

Both cities are now metros at 50%, so the rate stays the same. Calculate exemption month-by-month using actual rent paid in each city — you do not need to apportion separately for the rate change. Bangalore and Pune both qualify for 50% from FY 2026-27.

Calculate Your Exact Bangalore HRA Exemption

Enter your basic salary, HRA, and rent to see your annual HRA exemption with the new 50% metro rate.

Use HRA Calculator