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Carsv1.0.0Last reviewed 15 Sept 2026

Token Tax Calculator 2026-27

Calculate the annual token tax on your car or bike for FY2026-27 in Punjab and Islamabad, token tax by engine capacity and invoice value, income tax under section 234 for filers and non-filers, professional tax and the 10% early-payment rebate.

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How this is calculated

Token tax is the annual motor vehicle tax charged by the provincial Excise & Taxation department under the Motor Vehicles Taxation Act 1958 (and the Islamabad equivalent). It is collected together with two other items: income tax under section 234 of the Income Tax Ordinance (a federal advance tax, higher for non-filers) and, in Punjab, professional tax of Rs 200.

Punjab, FY2026-27 (Excise & Taxation Punjab, official rate table):

  • Motorcycles: Rs 1,500 lifetime, paid once at registration.
  • Cars up to 1000cc: Rs 20,000 lifetime, paid once (was Rs 15,000 in 2023-24). No annual token afterwards.
  • 1001–2000cc: 0.3% of the invoice value per year (0.2% in 2025-26).
  • Above 2000cc: 0.4% of the invoice value per year (0.3% in 2025-26).
  • 10% rebate on the annual token if the full year is paid by 31 August.
  • On transfer within 10 years, lifetime tax is charged again with a 10% reduction for each financial year elapsed.

Islamabad (ICT), from 1 July 2026 (Finance Act 2026-27): Rs 20,000 lifetime up to 1000cc; 0.25% of invoice value for 1001–2000cc; 0.35% above 2000cc.

Income tax u/s 234 (filer / non-filer): up to 1000cc a lump sum of Rs 10,000 / 30,000 collected with the lifetime token; 1001–1199cc Rs 1,500 / 4,500; 1200–1299cc Rs 1,750 / 5,250; 1300–1499cc Rs 2,500 / 7,500; 1500–1599cc Rs 3,750 / 11,250; 1600–1999cc Rs 4,500 / 13,500; 2000cc and above Rs 10,000 / 30,000 per year.

Sindh, KP and Balochistan run their own schedules. Sindh's lifetime rule for ≤1000cc (Rs 20,000) and motorcycles (Rs 1,800 up to 149cc, Rs 3,000 above) is published, but its annual rates above 1000cc are not, so the tool leaves those provinces out rather than guess.

Frequently asked questions

How is token tax calculated in Punjab in 2026?
For cars above 1000cc it is a percentage of the invoice value: 0.3% per year for 1001–2000cc and 0.4% for larger engines. Cars up to 1000cc pay a one-time lifetime token of Rs 20,000 instead. Income tax under section 234 and Rs 200 professional tax are added on the same challan.
What is lifetime token tax?
A one-time payment at registration that replaces the annual token for the life of the vehicle. It applies to motorcycles and to cars up to 1000cc in Punjab, Islamabad and Sindh. If the vehicle is sold within 10 years, the buyer pays it again with a 10% reduction for each year already elapsed.
Why is my token tax higher as a non-filer?
The token itself is the same, but the income tax collected with it under section 234 is 300% of the filer rate. Getting onto the Active Taxpayer List before paying saves Rs 3,000–20,000 a year depending on engine size.
When is token tax due?
The financial year runs July–June. Punjab gives a 10% rebate if you pay the full year by 31 August; paying late attracts a penalty and the vehicle can be impounded at checkpoints.
How do I pay token tax online?
Punjab: ePay Punjab app or e-Pay portal: enter the registration number, generate a PSID and pay through any bank app, ATM or 1Link. Islamabad: the Excise ICT portal (islamabadexcise.gov.pk) and City Islamabad app. Sindh: excise.gos.pk e-services.
Is there token tax on electric vehicles?
Punjab charges EVs on a kW-equivalent band and has offered concessions in some years; Islamabad has waived token tax on EVs in some budgets. Check the current year's notification: this calculator covers petrol and diesel vehicles.

Sources

Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.

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