Metro (from April 1, 2026): Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad
HRA Exemption
Taxable HRA
Exemption Calculation (Least of Three)
Option 1
Option 2
Option 3
Estimated Tax Savings
This is an indicative calculation based on current HRA exemption rules (updated April 2026). Actual liability depends on your complete financial picture. Consult a Chartered Accountant before filing.
8-city metro rule effective April 1, 2026. Per the draft Income Tax Rules 2026, Bengaluru, Hyderabad, Pune, and Ahmedabad now qualify for the 50% HRA exemption rate, joining the traditional four metros (Mumbai, Delhi, Kolkata, Chennai). All other cities continue to use the 40% non-metro rate. The new rules also require disclosure of the landlord-tenant relationship when claiming HRA. Last updated: April 18, 2026.