PROVINCIAL MOTOR VEHICLE TAX
Vehicle Token Tax Calculator Pakistan 2026-27
Yearly token tax by province, plus the federal advance tax collected under Section 234 for vehicles under 10 years old.
Vehicle under 10 years old. Rates for FY 2026-27, one-time federal Section 234 collection alongside provincial token.
What is token tax in Pakistan?
Quick answer: Token tax is the annual motor vehicle tax you pay to the excise office to keep your registration current. It is two charges stacked together: a federal advance income tax component that is the same nationwide and depends on engine size and filer status (for example Rs. 800 a year for a car up to 1000cc if you are a filer, double that for a non-filer), and a larger provincial motor vehicle tax that differs between Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad. The tables below show both parts.
Why Your Token Tax Depends on Which Province You're In
Annual motor vehicle tax — what everyone at the Excise office just calls "token tax" — is actually two charges stacked together: a small federal advance income tax component that's the same everywhere in Pakistan, and a much larger provincial motor vehicle tax that varies significantly between Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan, and Islamabad Capital Territory. This is why a friend in Lahore and a friend in Karachi driving the identical 1300cc car almost never pay the same total.
The Federal Component (Same Nationwide)
This part is collected everywhere at the same rate, based on engine capacity and whether you're a filer:
| Engine Capacity | Filer | Non-Filer |
|---|---|---|
| Up to 1000cc | Rs. 800 | Rs. 1,600 |
| 1001cc – 1199cc | Rs. 1,500 | Rs. 3,000 |
| 1200cc – 1299cc | Rs. 1,750 | Rs. 3,500 |
| 1300cc – 1499cc | Rs. 2,500 | Rs. 5,000 |
| 1500cc – 1599cc | Rs. 3,750 | Rs. 7,500 |
| 1600cc – 1999cc | Rs. 4,500 | Rs. 9,000 |
| 2000cc and above | Rs. 10,000 | Rs. 20,000 |
The Provincial Component (Where It Actually Diverges)
Punjab and Islamabad charge a percentage of the vehicle's invoice value each year for anything above 1000cc — 0.3% up to 2000cc and 0.4% above that in Punjab (slightly less in Islamabad), which is why token tax on an expensive 1800cc car in Lahore can run into tens of thousands of rupees. Cars up to 1000cc pay a one-time lifetime token of Rs. 20,000 instead of an annual fee. Pay by 31 August and Punjab gives a 10% early-payment discount.
Sindh, Khyber Pakhtunkhwa, and Balochistan use flat annual amounts tied to engine capacity brackets instead of a percentage of price — so token tax on a car in Karachi or Peshawar doesn't change whether the car cost Rs. 15 lakh or Rs. 30 lakh, only what CC bracket it falls into. KP currently exempts electric 4-wheelers from token tax entirely until 30 June 2028, a detail a lot of EV buyers in Peshawar and Mardan don't realize applies to them.
| Province | Basis | Typical Range |
|---|---|---|
| Punjab | % of invoice value (0.3%–0.4%) above 1000cc; Rs. 20,000 flat lifetime up to 1000cc | Rs. 20,000 – Rs. 100,000+ |
| Islamabad | % of invoice value (0.25%–0.35%) above 1000cc; Rs. 20,000 flat lifetime up to 1000cc | Rs. 20,000 – Rs. 90,000+ |
| Sindh | Flat annual amount by CC bracket | Rs. 1,500 – Rs. 7,000 |
| Khyber Pakhtunkhwa | Flat annual amount by CC bracket; EVs exempt to 30 Jun 2028 | Rs. 2,000 – Rs. 8,000 |
| Balochistan | Flat annual amount by CC bracket | Rs. 1,000 – Rs. 2,000 |
Worked Example: 1300cc Car Registered in Lahore vs Karachi
Take a filer with a 1300cc car worth Rs. 3,500,000 on the invoice:
- Lahore (Punjab): Federal Rs. 2,500 + Provincial (0.3% × 3,500,000 = Rs. 10,500) = Rs. 13,000/year
- Karachi (Sindh): Federal Rs. 2,500 + Provincial flat Rs. 4,000 = Rs. 6,500/year
Same car, same filer status, nearly double the token tax just because of province — this is the single most common source of confusion we see in the comments on Pakistani car forums.
Common Mistakes With Token Tax
- Mixing up token tax with 231B registration tax. Token tax is paid every year you own the vehicle. The 231B advance tax is a one-time charge only at registration or transfer.
- Missing Punjab's 31 August discount deadline. Paying even a day late means losing the 10% early-payment reduction for the whole year.
- Assuming your old province's rate still applies after moving. Token tax is based on where the vehicle is registered, not where you grew up or previously lived — re-registering after an inter-provincial move changes your rate.
- Not checking your specific vehicle class. Commercial vehicles, motorcycles, and rickshaws follow entirely separate fee schedules from private cars in most provinces.
Provincial Token Tax Rates — FY 2026-27
| Province | Up to 1000cc | 1001–2000cc | Above 2000cc |
|---|---|---|---|
| Punjab | Rs. 20,000 (once) | 0.3% of invoice/yr | 0.4% of invoice/yr |
| Sindh | Rs. 1,500/yr | Rs. 2,000–4,500/yr | Rs. 5,000–7,000/yr |
| Khyber Pakhtunkhwa | Rs. 2,000/yr | Rs. 3,000–5,000/yr | Rs. 8,000/yr |
| Balochistan | Rs. 1,000–1,100/yr | Rs. 1,400–1,700/yr | Rs. 2,000/yr |
| Islamabad (ICT) | Rs. 20,000 (once) | 0.25% of invoice/yr | 0.35% of invoice/yr |
Federal Section 234 tax (vehicles under 10 years) ranges from Rs. 800 (filer, up to 1000cc) to Rs. 20,000 (non-filer, 2000cc+), and is collected alongside the provincial token. Non-filers pay exactly double the filer rate.
Frequently Asked Questions
How is vehicle token tax calculated in Pakistan?
Token tax is set by each province and depends on your vehicle's engine capacity. Punjab and Islamabad charge a percentage of the invoice price for cars over 1,000cc; Sindh, KPK and Balochistan use fixed yearly amounts by cc band. A separate federal advance tax under Section 234 is collected alongside it for vehicles under 10 years old.
Does token tax differ by province?
Yes, significantly. The same 1,300cc car can cost a different amount to license depending on whether it's registered in Punjab, Sindh, KPK, Balochistan or Islamabad, since each sets its own rates and methodology.
Is the federal vehicle tax different for filers and non-filers?
Yes. Non-filers have paid double the filer rate on Section 234 advance tax since 2019-20. This federal amount is adjustable against your annual income tax liability.
Where do QuickTaxPK's tax figures come from?
Rates are based on the Finance Act 2026, provincial motor vehicle tax notifications, and official excise & taxation department schedules, last reviewed on 22 September 2026.
Can I pay my province's token tax online?
Yes, most provinces now offer this. Punjab's Excise, Taxation and Narcotics Control Department has an online token tax portal, Sindh runs vehicle tax payment through its Excise and Taxation Department site, and Islamabad allows payment through the ICT Excise portal. You'll need your vehicle registration number to check the amount due and pay by debit card, over-the-counter banking, or mobile wallet, depending on the province.
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Official sources: Federal Board of Revenue (FBR). Rates and rules can change; always confirm with the official source before relying on an estimate.