Finance & CalculatorsNovember 3, 2026 2 min read

HRA Metro Cities List: 8 Cities at 50% From FY 2026-27

Which cities get the 50% HRA limit from FY 2026-27, what changed for Bengaluru, Hyderabad, Pune and Ahmedabad, and what it means for your tax.

For HRA exemption, one of the three limits is a share of your salary: 50% in metro cities and 40% elsewhere. Until now, only four cities counted as metros. Tax publications report that, under the Income-tax Rules 2026, eight cities qualify for 50% from FY 2026-27.

The 8 cities

Delhi
Mumbai
Kolkata
Chennai
Bengaluru (new)
Hyderabad (new)
Pune (new)
Ahmedabad (new)

What changes for you

If you pay rent in Bengaluru, Hyderabad, Pune or Ahmedabad, the third HRA limit rises from 40% to 50% of your basic salary. That only increases your exemption if the 50% limit was the one holding you back. If your HRA or your rent minus 10% of salary is already the lowest of the three, nothing changes.

HRA Calculator

Check what the new 50% rule means for your HRA.

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Which year applies?

The eight-city list applies from FY 2026-27. For FY 2025-26 and earlier years, use the old four-city list. Our HRA Calculator lets you pick either year.

Frequently asked questions

Is Gurugram or Noida a metro for HRA?

Not in the eight-city list. HRA depends on the city where your rented home is, so check the official wording with your employer.

Does the metro rule apply to the new regime?

No. HRA exemption, and so the metro rule, applies only in the old tax regime.