In Punjab, token tax for 2026-27 is 0.3% of the invoice value for cars of 1001 to 2000cc and 0.4% above 2000cc, plus section 234 income tax. A 1300cc car with a Rs 4,500,000 invoice pays Rs 16,200 for a filer: Rs 13,500 motor vehicle tax, Rs 2,500 income tax and Rs 200 professional tax.
Cars up to 1000cc do not pay every year. They pay Rs 20,000 once, at registration. Enter your engine cc, invoice price and filer status above; tick the rebate box only if you paid the whole year by 31 August.
Punjab token tax rates 2026-27
Motor vehicle tax for private cars and motorcycles from 1 July 2026. The minimum in each row is the old fixed rate, which applies when the percentage works out lower.
| Engine | Punjab motor vehicle tax |
|---|---|
| Up to 1,000cc | Rs 20,000 once (lifetime) |
| 1,001 to 1,300cc | 0.3% of invoice value, at least Rs 1,800 |
| 1,301 to 1,500cc | 0.3% of invoice value, at least Rs 6,000 |
| 1,501 to 2,000cc | 0.3% of invoice value, at least Rs 9,000 |
| 2,001 to 2,500cc | 0.4% of invoice value, at least Rs 12,000 |
| Above 2,500cc | 0.4% of invoice value, at least Rs 15,000 |
| Motorcycle any cc | Rs 1,500 once (lifetime) |
In 2025-26 the rates were 0.2% (1001 to 2000cc) and 0.3% (above 2000cc). Section 234 income tax is added on top; see the table further down.
The old-rate minimum
The Punjab Finance Act 2024, which moved cars to value-based tax, added a floor: if the percentage gives less than the rate that applied before, the old rate is charged. This matters for older or cheaper cars.
Example: a 1500cc car with an invoice value of Rs 1,500,000.
| Step | Amount |
|---|---|
| 0.3% x Rs 1,500,000 | Rs 4,500 |
| Old fixed rate for 1500cc | Rs 6,000 |
| Motor vehicle tax charged (the higher) | Rs 6,000 |
| Section 234 tax, 1500cc, filer | Rs 3,750 |
| Professional tax | Rs 200 |
| Total | Rs 9,950 |
The old rates are Rs 1,800 for 1001 to 1300cc, Rs 6,000 for 1301 to 1500cc, Rs 9,000 for 1501 to 2000cc, Rs 12,000 for 2001 to 2500cc and Rs 15,000 above that.
Token tax on common cars in Punjab
Worked out by the calculator for 2026-27. The 1000cc row is a new car paying its one-time token. The rest are yearly.
| Engine | Invoice value | Motor vehicle tax | 234 tax (filer) | Total, filer | Total, non-filer |
|---|---|---|---|---|---|
| 1,000cc | Rs 3,200,000 | Rs 20,000 | Rs 10,000 | Rs 30,200 | Rs 40,200 |
| 1,300cc | Rs 4,500,000 | Rs 13,500 | Rs 2,500 | Rs 16,200 | Rs 18,700 |
| 1,500cc | Rs 6,500,000 | Rs 19,500 | Rs 3,750 | Rs 23,450 | Rs 27,200 |
| 1,800cc | Rs 9,000,000 | Rs 27,000 | Rs 4,500 | Rs 31,700 | Rs 36,200 |
| 2,400cc | Rs 16,000,000 | Rs 64,000 | Rs 10,000 | Rs 74,200 | Rs 84,200 |
Figures include the Rs 200 professional tax and assume no early payment rebate.
Cars up to 1000cc and motorcycles
A car up to 1000cc pays a lifetime token of Rs 20,000 when first registered, with Rs 10,000 section 234 tax for a filer. A motorcycle pays Rs 1,500 once. Nothing is due each year after that.
If the car is transferred within ten years of registration, the new owner pays the lifetime amount again, less 10% for each year. A 1000cc car sold three years after registration is charged the lifetime amount less 30%, which is Rs 14,000. After ten years nothing is charged. Motorcycles follow the same rule on Rs 1,500. Use the vehicle transfer fee calculator for the full cost of a transfer.
Cars registered before July 2024: these may be charged either the percentage of invoice value or the old fixed rate for their engine size (Rs 1,800, Rs 6,000, Rs 9,000, Rs 12,000 or Rs 15,000). The calculator applies the percentage, with the old rate as the floor, to every car above 1000cc. If your car was registered before July 2024, compare the result with your e-pay challan.
Rebate for paying early
Punjab Excise allows a 10% rebate on the yearly token tax if the tax for the whole year is paid on or before 31 August. For 2026-27 that date has passed. The rebate is taken off the motor vehicle tax only, not the section 234 income tax. On the 1300cc example above, it would have saved Rs 1,350.
Section 234 tax on the Punjab e-pay challan
Punjab Excise adds this federal advance tax to the same challan as the motor vehicle tax. FBR's 2026-27 rates are below, with the non-filer column at double.
| Engine | Yearly, filer | Yearly, non-filer | Lump sum, filer | Lump sum, non-filer |
|---|---|---|---|---|
| Up to 1,000cc | Rs 800 | Rs 1,600 | Rs 10,000 | Rs 20,000 |
| 1,001 to 1,199cc | Rs 1,500 | Rs 3,000 | Rs 18,000 | Rs 36,000 |
| 1,200 to 1,299cc | Rs 1,750 | Rs 3,500 | Rs 20,000 | Rs 40,000 |
| 1,300 to 1,499cc | Rs 2,500 | Rs 5,000 | Rs 30,000 | Rs 60,000 |
| 1,500 to 1,599cc | Rs 3,750 | Rs 7,500 | Rs 45,000 | Rs 90,000 |
| 1,600 to 1,999cc | Rs 4,500 | Rs 9,000 | Rs 60,000 | Rs 120,000 |
| Above 1,999cc | Rs 10,000 | Rs 20,000 | Rs 120,000 | Rs 240,000 |
You can claim it against your income tax for the year. It stops once a car has been in use in Pakistan for more than ten years, under section 234(2A). The lump sum column applies to the one-time token on cars up to 1000cc.
Electric vehicles get 95% off registration fee and motor vehicle tax in Punjab; the calculator does not apply this. Section 234 tax is federal: the FBR rate card for 2026-27 sets the non-filer rate at double the filer rate, and the calculator applies that. Some Punjab Excise tables still show three times, the older rule, so check your e-pay challan for the exact figure.
How to pay Punjab token tax online
Punjab Excise collects token tax through ePay Punjab, the government payment app and website run by the Punjab Information Technology Board.
- Open ePay Punjab, choose motor vehicle tax and enter your registration number.
- Check the amount, then generate the 17-digit PSID (payment slip ID).
- Pay the PSID through internet or mobile banking, at an ATM, or over the counter at a bank.
Punjab Excise's website also links the MTMIS vehicle verification page, where you can see the registration details of a vehicle before you pay or buy. The early-payment rebate, 10% of the yearly tax, applies only when the whole year is paid by 31 August.
Taking over a used car in Punjab? The vehicle transfer fee calculator works out the Punjab transfer fee and section 231B tax that come on top of the token. For a car straight from the dealer, the car on-road price calculator totals registration, advance tax and the first year's token.
Punjab token tax questions
What is the token tax for a 1300cc car in Punjab?
For 2026-27 it is 0.3% of the invoice value, but at least Rs 1,800. On a Rs 4,500,000 invoice that is Rs 13,500. A filer adds Rs 2,500 section 234 tax and Rs 200 professional tax, so pays Rs 16,200. A non-filer pays Rs 18,700.
Do 1000cc cars pay token tax every year in Punjab?
No. Cars up to 1000cc pay a lifetime token of Rs 20,000 once, at registration. If the car is sold within ten years, the buyer pays it again less 10% for each year since registration, so Rs 12,000 after four years and nothing after ten.
What invoice value does Punjab Excise use?
The invoice value of the vehicle when it was sold new, as held in the excise record. It is not the market price today. For an imported car, the value is normally the one assessed at import. If you are unsure, check the value shown on your last challan or on the MTMIS record.
How do I get the 10% token tax rebate in Punjab?
Pay the full year's token tax on or before 31 August of that financial year. The rebate is 10% of the yearly motor vehicle tax. It does not apply to section 234 income tax or to the lifetime token on small cars.
When did Punjab start charging token tax on invoice value?
From 1 July 2024, under the Punjab Finance Act 2024, at 0.2% and 0.3%. The Punjab Finance Act 2026 raised these to 0.3% and 0.4% from 1 July 2026. Before 2024 cars paid fixed amounts by engine size, which now act as the minimum.
How do I pay Punjab token tax online?
Use ePay Punjab, the official payment app and website. Enter your registration number, generate the 17-digit PSID and pay it through internet or mobile banking, an ATM or a bank counter. You can check the vehicle's record first on the MTMIS verification page of Punjab Excise.
Last reviewed 9 October 2026. Results are estimates; official notices always take precedence.