Punjab Token Tax Calculator 2026-27: Cars and Motorcycles
Work out the yearly token tax on a car registered in Punjab under the 2026-27 rates, with the income tax collected with it, for filers and non-filers.
A 1300cc car with an invoice price of Rs 5,000,000 pays Rs 15,000 token tax in 2026-27. The excise office also collects Rs 2,500 of advance income tax, so the total is Rs 17,500, against Rs 12,500 in 2025-26.
Yearly token tax on a 1300cc car by invoice price
| Invoice price | 2026-27 | 2025-26 |
|---|---|---|
| Rs 3,000,000 | Rs 9,000 | Rs 6,000 |
| Rs 5,000,000 You are here | Rs 15,000 | Rs 10,000 |
| Rs 7,500,000 | Rs 22,500 | Rs 15,000 |
| Rs 10,000,000 | Rs 30,000 | Rs 20,000 |
| Rs 15,000,000 | Rs 45,000 | Rs 30,000 |
| Rs 25,000,000 | Rs 75,000 | Rs 50,000 |
How Punjab Token Tax Is Worked Out in 2026-27
Token tax is the yearly motor vehicle tax you pay to the Punjab Excise, Taxation and Narcotics Control Department. From 1 July 2026, a car above 1000cc pays a share of its invoice price every year: 0.3% up to 2000cc and 0.4% above 2000cc. The Punjab Finance Act 2026 raised both by 0.1 points. They were 0.2% and 0.3% in 2025-26.
The percentage can never give less than the flat yearly rate it replaced in 2024. So a cheap car still pays at least the old figure for its engine size. A Rs 2 million 1800cc car works out at Rs 6,000 by the percentage, but it pays the old Rs 9,000.
| Engine size | Yearly token tax, 2026-27 | Minimum (old flat rate) |
|---|---|---|
| Motorcycle or scooter | Rs 1,500 once, at registration | Not applicable |
| Up to 1000cc | Rs 20,000 once, at registration | Not applicable |
| 1001cc to 1300cc | 0.3% of the invoice price | Rs 1,800 |
| 1301cc to 1500cc | 0.3% of the invoice price | Rs 6,000 |
| 1501cc to 2000cc | 0.3% of the invoice price | Rs 9,000 |
| 2001cc to 2500cc | 0.4% of the invoice price | Rs 12,000 |
| Above 2500cc | 0.4% of the invoice price | Rs 15,000 |
Rates are from the department’s own rate table. The minimum comes from the Punjab Finance Act 2024, which says the yearly tax is paid at the old rate if the percentage gives less. The invoice price is the price on the sales invoice when the car was first sold, so the tax does not fall as the car gets older.
Cars Up to 1000cc and Motorcycles
These pay once. A car up to 1000cc pays Rs 20,000 when it is first registered and no yearly token after that. A motorcycle or scooter pays Rs 1,500. If the vehicle is sold within ten years, the new owner pays the same amount again, less 10% for each financial year since it was registered. So a 1000cc car sold three financial years after registration costs the buyer Rs 14,000.
Income Tax Collected With the Token
The excise office also collects advance income tax under section 234 of the Income Tax Ordinance. It is a fixed amount by engine size, and you can claim it against your income tax when you file your return.
| Engine size | Filer, per year | Non-filer, per year |
|---|---|---|
| Up to 1000cc | Rs 800 (Rs 10,000 if paid in one go) | Rs 1,600 (Rs 20,000) |
| 1001cc to 1199cc | Rs 1,500 | Rs 3,000 |
| 1200cc to 1299cc | Rs 1,750 | Rs 3,500 |
| 1300cc to 1499cc | Rs 2,500 | Rs 5,000 |
| 1500cc to 1599cc | Rs 3,750 | Rs 7,500 |
| 1600cc to 1999cc | Rs 4,500 | Rs 9,000 |
| 2000cc and above | Rs 10,000 | Rs 20,000 |
A “filer” here means your name is on FBR’s Active Taxpayers List. The Ordinance’s Tenth Schedule raises the rate by 100% for anyone not on it, and that is what the calculator uses. The excise department’s own table shows three times the filer amount for non-filers. The Ordinance sets three times only for the advance tax on buying a car (section 231B). If your challan shows a different figure, ask the excise office which rate it applied. See filer vs non-filer for how to get on the list.
Under section 234(2A), no advance tax is collected on a car used for more than ten years in Pakistan. The token tax itself continues.
The 10% Rebate and Late Payment
If you pay the whole year’s token by 31 August, the department takes 10% off the token tax (not the income tax). For 2026-27 that date has passed. Pay by 31 August 2027 for next year’s rebate.
The Punjab Finance Act 2026 also changed the late surcharge from monthly to quarterly, according to KPMG’s summary of the provincial finance acts. Unpaid tax at 30 September, 31 December, 31 March and 30 June attracts a surcharge on the first day of the next quarter, so paying within a quarter avoids the next charge.
Electric Cars, Commercial Vehicles and Other Provinces
- Electric vehicles: the department’s page says 95% of the registration fee and 95% of the motor vehicle tax are exempted.
- Goods and passenger vehicles: these pay by laden weight or seats, not by engine size. The Finance Act 2026 tripled the goods vehicle rates (Rs 2,200 to Rs 6,600 for 4,060 to 8,120 kg, for example), but the department’s page still shows the old ones. The calculator covers private cars only.
- Islamabad, Sindh, KP and Balochistan each set their own token tax. This calculator is for vehicles registered in Punjab.
How to Pay
You can pay online through ePay Punjab or at an excise office. The department also lists online verification of a vehicle’s tax status at mtmis.excise.punjab.gov.pk. Check it before you buy a used car: unpaid token tax stays with the vehicle, and the transfer needs a registration book with the token paid up to date.
When you buy a new car, the manufacturer also collects a one-off advance tax as a share of the price. The car installment calculator page has those rates and the State Bank’s car loan rules.
Common questions
Why did my token tax go up this year?
From 1 July 2026, the rate on cars above 1000cc rose from 0.2% to 0.3% of the invoice price up to 2000cc, and from 0.3% to 0.4% above 2000cc, under the Punjab Finance Act 2026. The excise department’s rate table shows both years. On a Rs 5 million 1300cc car the token went from Rs 10,000 to Rs 15,000.
Is token tax charged on the current value of my car?
No. It is charged on the invoice value, the price when the car was first sold, so it does not fall as the car ages. It cannot fall below the old flat rate for the engine size either, so a 1800cc car pays at least Rs 9,000 a year however cheap it was. Use the invoice price on your sales certificate or registration file, not what the car would sell for today.
Do I pay token tax on a 660cc or 1000cc car every year?
No. Cars up to 1000cc pay a one-time Rs 20,000 at registration under the Punjab Motor Vehicles Taxation Act 1958 schedule. The new owner pays it again on a transfer within ten years, less 10% for each financial year since registration, so a car sold three years in costs the buyer Rs 14,000. Motorcycles follow the same rule with Rs 1,500.
Can I claim the income tax back?
Yes. Section 234(5) of the Income Tax Ordinance says advance tax collected with the token is adjustable. Enter it as tax already paid when you file your return, and it reduces the tax you owe for the year. Keep the paid token tax challan as your proof of the advance tax, since you need the amount when you file.
Does a non-filer pay more token tax?
The token tax is the same. Only the advance income tax collected with it is higher for someone not on the Active Taxpayers List. Under the Ordinance it is double the filer amount, for example Rs 5,000 instead of Rs 2,500 a year on a 1300cc car. The excise table shows three times, so check your challan and ask the excise office if it differs.
Sources
- Punjab Excise, Taxation and Narcotics Control Department, motor vehicle tax rates (2026-27, 2025-26 and earlier columns, rebate, EV exemption).
- Punjab Finance Act 2024, section 5 (schedule to the Punjab Motor Vehicles Taxation Act 1958: lifetime token, invoice-value rates, minimum).
- Punjab Finance Act 2026, as summarised in KPMG’s brief of provincial tax laws 2026 (0.3% and 0.4%, goods vehicle rates, quarterly surcharge).
- Income Tax Ordinance 2001, section 234, First Schedule Part IV Division III, Tenth Schedule rule 1.
Checked 23 October 2026.