What is the HRA percentage for Rajasthan state government employees in Jaipur?

For income tax purposes, Rajasthan state government employees in Jaipur use the same Section 10(13A) calculation — 40% of basic salary as the third condition. The HRA rate paid by the Rajasthan government in salary may differ (typically 16-24% based on city classification under Rajasthan service rules), but the income tax exemption is calculated using the standard non-metro 40% rule.

Is Jaipur considered a metropolitan city under any income tax provision?

No. Jaipur is not listed as a metropolitan city under any Income Tax Act provision. It is classified as a Class B-1 city under Rajasthan state service rules for state government HRA, but for central income tax HRA exemption, it falls under non-metro at 40%.

Will Jaipur become a metro for HRA in future budgets?

No announcement has been made. Budget 2025 added 4 cities (Bengaluru, Hyderabad, Pune, Ahmedabad) to the metro list — but Jaipur was not included. Future budgets may revisit, but for FY 2026-27 Jaipur remains non-metro.

Is Jaipur a Metro City for HRA? No — 40% Non-Metro Rate Applies

Q: Is Jaipur a metro city for HRA?

No. Jaipur is not a metro city for HRA exemption purposes. The Income Tax Act recognises only 8 metro cities from FY 2026-27 — Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad. Jaipur, the capital of Rajasthan, is classified as non-metro and qualifies for 40% HRA exemption.

Q: What is the HRA rate in Jaipur?

Jaipur employees can claim 40% of basic salary as HRA exemption under Section 10(13A). The total exemption is the minimum of: (1) actual HRA received, (2) rent paid minus 10% of basic, (3) 40% of basic salary.

Quick Answer

No — Jaipur is not a metro city for HRA. The 40% of basic salary rate applies for HRA exemption under Section 10(13A) of the Income Tax Act.

The Income Tax Act lists 8 metro cities for HRA from FY 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad. Jaipur, despite being the capital of Rajasthan and a Tier-1 tourist city, is classified as non-metro for income tax HRA purposes.

What This Means for Your HRA Exemption

Worked example: an employee in Mansarovar, Jaipur with ₹40,000 monthly basic salary, ₹16,000 HRA in their CTC, and ₹14,000 monthly rent.

Condition	Annual Value
1. Actual HRA received	₹1,92,000
2. Rent paid − 10% of basic ← binding	₹1,20,000
3. 40% of basic (Jaipur = non-metro)	₹1,92,000
HRA exempt (least of 3)	₹1,20,000

Jaipur rents are typically modest compared to metros, so Condition 2 (rent − 10% of basic) is usually the binding constraint. The 40% rate rarely affects exemption unless rent crosses 35–40% of basic — which is uncommon in Jaipur outside premium areas like Vaishali Nagar, C-Scheme, or Civil Lines.

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

Only these 8 cities qualify 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 Rajasthan cities — Jaipur, Jodhpur, Udaipur, Ajmer, Kota, Bikaner — follow the 40% non-metro rate.

Jaipur-Specific HRA Notes

State HRA classification vs income tax HRA

Rajasthan state government classifies Jaipur as a "B-1" or "Y-class" city for its own employees' HRA (typically 16–20% of basic). This is the rate at which the state pays HRA in your salary. Income tax exemption is calculated separately under Section 10(13A) using the central rules — Jaipur is non-metro at 40%.

HRA in Jaipur for state government employees

If you are a Rajasthan state government employee in Jaipur, you receive HRA at the state-prescribed rate (8th Pay Commission revised). For your income tax exemption: actual HRA received, rent − 10% of basic, and 40% of basic — whichever is least, gets exempted under Section 10(13A).

Jaipur HRA for private sector

Private sector employees in Jaipur (IT, manufacturing, hospitality industries) follow the same 40% non-metro income tax HRA rate. The HRA component in your CTC is set by your employer, but the income tax exemption follows the same Section 10(13A) test.

How to Claim HRA in Jaipur

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 (Rajasthan Stamp Act applies).
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 Jaipur a metropolitan city or not?

For HRA tax exemption, no. Jaipur is non-metro at 40%. While Jaipur is the capital of Rajasthan and qualifies as a metropolitan area in some demographic definitions, the Income Tax Act lists only 8 metros and Jaipur is not on it.

What is the HRA rate in Jaipur for state government?

Rajasthan state government pays HRA at city-classification rates (currently 16–20% of basic for Jaipur as a Y-class city, post 8th Pay Commission revision). This is what is paid in your salary. For income tax exemption, the central 40% non-metro rate applies regardless of what state HRA percentage you receive.

Are 20% HRA cities in Rajasthan different from income tax classification?

Yes — these are two different classifications. Rajasthan service rules categorise cities into 20% (Y-class), 16% (Z-class), and lower for state government HRA payment. The Income Tax Act categorises only metro (50%) vs non-metro (40%) for HRA exemption. The two are not linked.

Does Jaipur HRA differ for new and old tax regimes?

Yes — the new tax regime does not allow HRA exemption at all. Only the old tax regime permits HRA exemption under Section 10(13A) at the 40% non-metro rate for Jaipur.

If I move from Jaipur to Bangalore mid-year, how do I calculate HRA?

Calculate exemption month-by-month. For months in Jaipur, use the 40% rate. For months in Bangalore from FY 2026-27, use the 50% metro rate. Sum the monthly exemptions for total annual HRA exemption.

Calculate Your Exact Jaipur HRA Exemption

Enter your basic salary, HRA, and rent to see your annual HRA exemption at the 40% non-metro rate.

Use HRA Calculator