TechiBhaiHRA Calculator
Calculate House Rent Allowance on any basic pay for X, Y or Z classified cities — at the current top-slab rate, active since DA crossed 50% in January 2024 — plus your income tax exemption estimate.
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Runs entirely in your browser — nothing you enter is stored or transmitted.
Your HRA result
How HRA and its tax exemption are calculated
(a) Actual HRA received
(b) 50% of Basic (metro) / 40% (non-metro)
(c) Rent paid − 10% of Basic
How to use this calculator
Enter basic pay
Type it directly, or pick your 7th CPC pay level to auto-fill the matrix entry point.
Pick your city class
X for metros, Y for tier-2 cities, Z for everywhere else. Check the reference list below if you're unsure.
Add rent (optional)
Enter your monthly rent to also see your estimated old-regime tax exemption under Section 10(13A).
Note: the tax exemption calculation only applies under the old income tax regime. If you've opted for the new regime, HRA exemption under Section 10(13A) is not available regardless of rent paid.
HRA rate history and X/Y/Z city classification
| DA condition | X (Metro) | Y (Tier-2) | Z (Other) | Effective period |
|---|---|---|---|---|
| DA below 25% | 24% | 16% | 8% | 7th CPC base rate (2016–2019) |
| DA 25%–49% | 27% | 18% | 9% | ~2019–2023 |
| DA 50% and above | 30% | 20% | 10% | Since January 2024 — current |
Minimum floor amounts (apply regardless of percentage): ₹5,400/month for X-class, ₹3,600/month for Y-class, ₹1,800/month for Z-class postings.
| Class | Example cities |
|---|---|
| X — Metro | Delhi NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad |
| Y — Tier-2 | Jaipur, Lucknow, Surat, Nagpur, and most other state capitals / cities with population 5–50 lakh |
| Z — Other | All remaining towns and rural postings with population under 5 lakh |
Two different classification systems exist. The X/Y/Z system above is for Central Government HRA. Income Tax exemption uses a separate "metro vs non-metro" system (50% vs 40% of basic) with its own city list — a city being X-class for government HRA doesn't automatically make it a metro for income tax purposes. This calculator's tax exemption estimate uses your selected city class as a proxy; verify against the Income Tax Department's own list for exact filing.
House Rent Allowance, explained
House Rent Allowance (HRA) is paid to central government employees as a percentage of basic pay, intended to help cover housing costs for those not provided government accommodation. Unlike a flat allowance, HRA is directly linked to two things: your basic pay, and the classification of the city you're posted in.
Why the rate keeps changing
Under the 7th CPC's original order, HRA started at 24%, 16% and 8% of basic pay for X, Y and Z class cities. But the order also built in automatic escalation: rates step up by 3 percentage points when Dearness Allowance crosses 25%, and by another 3 points when DA crosses 50%. DA crossed the first threshold around 2019, taking rates to 27%/18%/9%, and crossed 50% in January 2024, taking rates to the current 30%/20%/10%. This is why you'll see different percentages quoted across the internet — many pages simply haven't been updated past the first threshold.
The minimum floor
Regardless of the percentage calculation, no eligible employee receives less than the notified minimum: ₹5,400/month for X-class, ₹3,600/month for Y-class, and ₹1,800/month for Z-class postings. This floor mainly protects employees at the lowest pay levels, where 10% of basic pay in a Z-class posting could otherwise fall below a livable allowance.
HRA vs the income tax exemption on HRA
These are two separate calculations that people frequently conflate. Your salary HRA is what your employer pays you, based on the government's X/Y/Z classification. Your tax exemption is a separate Income Tax Act calculation under Section 10(13A) — available only under the old tax regime — based on the least of three figures: actual HRA received, 50% of basic pay for metro cities (40% for non-metro), or rent paid minus 10% of basic pay. Receiving HRA in your salary doesn't automatically mean the full amount is tax-free; the exemption depends on your actual rent and city.
Common mistakes
- Using the outdated 24%/16%/8% or 27%/18%/9% rates. As of 2026, the correct current rate is 30%/20%/10% — both older slabs are historical only.
- Assuming HRA classification and income tax metro classification are the same city list. They're independently maintained and can disagree for a given city.
- Forgetting the minimum floor exists. At lower pay levels in Z-class postings, the floor amount — not the percentage — is often what actually applies.
- Claiming HRA exemption under the new tax regime. Section 10(13A) exemption isn't available if you've opted for the new regime, regardless of rent paid.
- Not keeping rent receipts. Tax exemption claims above certain thresholds require rent receipts, a rental agreement, and the landlord's PAN — missing documentation can mean losing the exemption at assessment time.
Latest update (2026)
The current rate — 30%/20%/10% for X/Y/Z — has been in effect since January 2024 and remains current through 2026, since it only changes again when DA crosses the next notified threshold or when the 8th Pay Commission redefines the structure entirely.
Getting the most out of your HRA
Check your regime choice against your rent
If you pay significant rent in a metro city, the old regime's HRA exemption can outweigh the new regime's lower slab rates — re-run this comparison every year, not just once, since your rent and salary both change.
Landlord PAN is not optional above the threshold
If your annual rent exceeds ₹1 lakh, most employers require the landlord's PAN to process the exemption. Collect it at the start of the tenancy, not during tax-filing season when landlords are harder to reach.
HRA received ≠ HRA exempt
Even employees who receive the full 30% HRA in salary often can't claim the full amount as tax-exempt, because the "rent minus 10% of basic" leg of the formula caps it. Run the three-way comparison yourself rather than assuming full exemption.
Moving cities mid-year
If you transfer between city classes during the year, your HRA exemption should be computed month-wise using the applicable rate and rent for each period — not a simple annual average.
Frequently asked questions
Verify with primary sources
Want the full salary picture?
HRA is one part of your pay. See how basic pay, DA, HRA and TA combine under the proposed 8th Pay Commission.