HRA Rates — X / Y / Z Cities

House Rent Allowance (HRA) is one of the largest components of a Central Government employee's gross salary. Since DA crossed 50% in January 2024, HRA rates stepped up to their highest tier: 30% of basic pay for X (metro) cities, 20% for Y (Tier-2) cities, and 10% for Z (other) cities. This step-up adds several thousand rupees per month to your gross pay — use the calculator above to see the exact monthly HRA for your basic pay and city. To see how HRA fits into your complete 7th CPC salary breakdown, open the CPC Salary Calculator.

HRA Calculation Formula for Government Employees

The formula is simple: HRA = Basic Pay × HRA%. The HRA% depends on two factors — your duty station's city classification (X/Y/Z) and the current DA level. When DA was between 25–49%, rates were 27/18/9%. When DA was below 25%, they were 24/16/8%. At current DA of 60%, the 30/20/10% tier applies. Importantly, HRA is not payable if you occupy Government-provided accommodation (general pool or departmental quarters); instead, a licence fee is recovered from your salary.

HRA Tax Exemption Under Section 10(13A)

If you live in rented accommodation, HRA received is partially exempt from income tax under Section 10(13A). The exemption is the least of three values: (a) actual HRA received, (b) 50% of (basic + DA) for metro cities or 40% for non-metro, and (c) actual rent paid minus 10% of (basic + DA). Critically, this exemption is only available under the Old Tax Regime — the New Regime (default from FY 2023–24) does not allow it. Use our income tax Old vs New Regime calculator to compare whether HRA exemption makes the Old Regime worth opting into.

Impact of DA on HRA — When Do Rates Step Up?

HRA rates are tied to DA thresholds by government OM. The triggers are DA crossing 25% (24→27%), 50% (27→30%), and so on. The next threshold where HRA rates step up again will be when DA crosses 75% — which is expected around 2028–29 at the current pace of revision (roughly 4% every six months). This is separate from the 8th CPC, which will reset DA to 0% and merge existing DA into the new basic pay. Track current DA rate and revision history to stay updated.

Transport Allowance — Another Location-Based Allowance

Like HRA, Transport Allowance (TA) also depends on your location. TPTA cities (broadly overlapping with X/Y cities) receive higher TA rates than other postings. For Level 9 and above, TA is ₹7,200/month in TPTA cities vs. ₹3,600/month elsewhere, plus DA on TA at the current DA rate. See the Transport Allowance calculator for the full rate table by pay level.