HRA & Tax
New 50% HRA Cities India 2026: Bengaluru, Hyderabad, Pune, Ahmedabad
Updated 12 March 2026 | 6 min read
Quick answer
From April 2026, eight cities are expected in the 50 percent HRA category: Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad. Tenants in these cities should maintain rent receipts, agreement copy, and landlord details early to avoid payroll and ITR claim friction.
Old vs updated city set
The context shifts from traditional four metros to an expanded eight-city planning list.
What to prepare now
Collect receipts monthly and keep agreement details synchronized with payroll submissions.
ProRently
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Get Started FreeFrequently Asked Questions
Which cities get 50 percent HRA in India?
The standard 50 percent HRA cities are Mumbai, Delhi, Kolkata, and Chennai. If your employer adopts the proposed 2026 expansion, Bengaluru, Hyderabad, Pune, and Ahmedabad may also move into the 50 percent category. Always check payroll policy for the applicable financial year.
Does this apply to all employers immediately?
Not necessarily. Payroll systems follow the rules and timelines adopted by each employer for the relevant financial year. Confirm whether your HR team has updated city classification before assuming a higher exemption in salary processing.
Do non-listed cities still get HRA benefit?
Yes. Non-listed cities still qualify for HRA exemption, but they usually fall under the 40 percent salary condition instead of the 50 percent metro condition. The claim still depends on receipts, agreement, and payment proof.
Do I still need rent receipts and an agreement in a 50 percent HRA city?
Yes. A higher city cap does not remove documentation requirements. You still need rent receipts, a rent agreement, landlord details, and payment proof to support the exemption during payroll review or later tax scrutiny.