How is vehicle token tax calculated in Pakistan?

Token tax depends on your province, your vehicle's engine capacity (CC), and in some provinces like Punjab and Islamabad, a percentage of the vehicle's invoice value. Sindh instead uses fixed CC-based slabs that also depend on whether you are an active taxpayer (Filer) or Non-Filer.

What is the difference between Filer and Non-Filer token tax?

Filers, who are on FBR's Active Taxpayer List, pay a lower withholding tax rate on vehicle token tax compared to Non-Filers, who are typically charged double under Section 234 of the Income Tax Ordinance.

Is there a discount for paying token tax early?

Yes. Punjab offers a 10% rebate on the annual token tax if the full amount is paid on or before August 31 of the tax year.

Do vehicles older than 10 years pay less token tax?

Income/withholding tax collected alongside token tax is generally exempted for private vehicles that are 10 years or older from their registration date, though the base token/motor vehicle tax itself may still apply.

Vehicle Token Tax Calculator Pakistan 2026 (Punjab, Sindh, Islamabad)

Select Province / Territory

Engine Capacity

Vehicle Invoice / Purchase Value (PKR)

Required for vehicles above 1000cc, since tax is a % of invoice value.

Tax Status

Estimated Annual Token Tax-

Basis Used-

⚠️ Important: Token tax rates change with each provincial budget and vary by notification. Punjab's Budget 2026-27 has proposed a rate increase that was not yet finalized in official rate cards at the time of writing. This calculator gives a close estimate using the latest publicly confirmed rates — always verify the exact payable amount via ePay Punjab, Sindh e-Payment, or Excise Islamabad before paying.

How Vehicle Token Tax Works in Pakistan

Every registered vehicle in Pakistan is subject to an annual Motor Vehicle Tax, commonly called token tax, collected by the provincial Excise & Taxation Department. Unlike federal income tax, token tax rates and structures are set independently by each province and territory, which is why the same 1300cc car can have a different tax bill in Lahore, Karachi, or Islamabad.

Punjab Token Tax Structure (2026)

Punjab charges a one-time lifetime tax for very small cars, and a percentage of the vehicle's invoice value for everything above 1000cc:

Engine Capacity	Tax Basis
Up to 1000cc	PKR 20,000 (one-time, lifetime)
1001cc – 2000cc	0.2% of invoice value (annual)
Above 2000cc	0.3% of invoice value (annual)

Punjab also offers a 10% early-payment rebate if you pay your full annual token tax on or before August 31 through e-Pay Punjab.

Sindh Token Tax Structure (2026)

Sindh uses fixed annual slabs based on engine capacity, with a clear Filer vs Non-Filer distinction under Section 234 of the Income Tax Ordinance:

Engine Capacity	Filer	Non-Filer
Up to 1000cc	PKR 1,000	PKR 1,000
1001cc – 1199cc	PKR 1,800	PKR 3,600
1200cc – 1299cc	PKR 2,000	PKR 4,000
1300cc – 1499cc	PKR 3,000	PKR 6,000
1500cc – 1599cc	PKR 4,500	PKR 9,000
1600cc – 1999cc	PKR 6,000	PKR 12,000
2000cc & above	PKR 12,000	PKR 24,000

Islamabad (ICT) Token Tax Structure (2026)

Under the Finance Act 2026, Islamabad moved from a fixed CC-based system to an invoice-value model for most categories:

Engine Capacity	Tax Basis
Up to 1000cc	PKR 20,000 (fixed annual)
1001cc – 2000cc	0.25% of invoice value (annual)
Above 2000cc	0.35% of invoice value (annual)

Why Do Filers Pay Less?

Being on FBR's Active Taxpayer List (ATL) — i.e. being a Filer — reduces the withholding tax charged alongside your token tax, sometimes by up to 50%. This amount is separate from the base motor vehicle tax and is adjustable against your annual income tax return, making it worthwhile to file your taxes even for a single vehicle.

Frequently Asked Questions

Does a 10+ year old car still pay token tax?

The base token tax generally still applies, but the additional income/withholding tax portion is typically exempted for private vehicles 10 years or older from the registration date.

Can I pay token tax online?

Yes — Punjab via ePay Punjab, Sindh via the Sindh e-Payment app, and Islamabad via the Excise & Taxation ICT portal all support digital token tax payment without visiting an office.

What happens if I don't pay on time?

Unpaid or overdue token tax accumulates late fees/penalties and can block vehicle transfer, ownership verification, or renewal until cleared.

Disclaimer: This calculator provides an estimate based on the latest publicly available provincial Excise & Taxation rate structures as of 2026. Rates are subject to change with each provincial budget. For the exact, official payable amount, always verify through your province's official Excise & Taxation portal before making payment.