Rates for FY 2026-27
| Engine capacity | Filer | Non-filer |
|---|---|---|
| Up to 850cc | 0.5% | 1.5% |
| 851 – 1000cc | 1% | 3% |
| 1001 – 1300cc | 1.5% | 4.5% |
| 1301 – 1600cc | 2% | 6% |
| 1601 – 1800cc | 3% | 9% |
| 1801 – 2000cc | 5% | 15% |
| 2001 – 2500cc | 7% | 21% |
| 2501 – 3000cc | 9% | 27% |
| Above 3000cc | 12% | 36% |
The rate is applied to the vehicle's value, usually the invoice price including sales tax for locally made cars, or the import value plus duties for imported ones.
A few examples
| Car (example) | Engine | Value | Filer | Non-filer |
|---|---|---|---|---|
| Small hatchback | 800cc | Rs 3,000,000 | Rs 15,000 | Rs 45,000 |
| 1000cc hatchback | 998cc | Rs 4,200,000 | Rs 42,000 | Rs 126,000 |
| Compact sedan | 1300cc | Rs 5,500,000 | Rs 82,500 | Rs 247,500 |
| Mid-size SUV | 1800cc | Rs 9,500,000 | Rs 285,000 | Rs 855,000 |
| Large SUV | 2700cc | Rs 25,000,000 | Rs 2,250,000 | Rs 6,750,000 |
The examples use round figures, not real model prices. Enter your own car's value above.
Who collects it and when
The provincial excise and taxation department, or the Islamabad excise office, collects the tax at first registration. For imported cars, customs collects it at the port. Either way, it's an advance tax. You can adjust it against your yearly income tax when you file your return.
Why non-filers pay three times more
The government uses big-ticket purchases like cars to bring people into the tax net. A non-filer buying a 1300cc car worth Rs 5.5 million pays Rs 247,500 instead of Rs 82,500. Filing a return, even if your tax works out low, is almost always cheaper than paying the non-filer rate.
Electric and hybrid vehicles
Electric vehicles don't have an engine capacity in cc, and special rules and concessions have applied to them in recent budgets. Provincial governments also offer token tax relief on EVs. If you're buying an EV, check the current treatment with your dealer or the excise office.
Other taxes when buying a car
On top of 231B, you'll pay provincial registration fees, number plate charges, and the first year's token tax. Buying a used car means transfer fees, and there's a separate advance tax on transfer of registration in some cases. For yearly costs after you've bought, try the vehicle token tax calculator.
Leasing
If you lease a car through a bank, the leasing company handles registration. Non-filers have faced an additional advance tax on lease payments. Ask the bank how it treats your status before you sign.
Value of a locally assembled car
For a car bought from an authorised dealer, the value is normally the invoice price, including sales tax and any federal excise duty. Optional extras fitted by the dealer may or may not be included. If the dealer's figure looks higher than the published price, ask what's been added before you pay.
Getting a refund or adjustment
When you file your return, enter the 231B tax in the section for adjustable withholding taxes, with the excise receipt or customs document as proof. If your total tax for the year is less than what's been withheld, IRIS shows the difference as refundable. Refunds take time, but at least the money isn't lost. Non-filers can't claim anything, which is part of why their effective cost is so high.
Related calculators
- Vehicle token tax calculator, for the yearly cost after registration.
- Filer vs non-filer guide, to see what it takes to pay the lower rate.
- Salary increment calculator, if a new car comes with a promotion and you want to see what's left after tax.
Frequently asked questions
How much advance tax is due on a 1000cc car?
For a filer it is 1% of the value. On a Rs 4.2 million car that's Rs 42,000. A non-filer pays 3%, or Rs 126,000.
Is the 231B tax refundable?
It is adjustable against your income tax liability when you file your return, and any excess can be claimed as a refund.
Do I pay this on a used car?
Section 231B mainly applies at first registration. Transfers of used vehicles have their own advance tax rules, which change from budget to budget.
Why is my dealer quoting a different figure?
The value used may include sales tax and other charges, or the dealer may be adding registration fees and token tax. Ask for a breakdown.
Rates: Income Tax Ordinance 2001 and its schedules as amended by the Finance Act 2026, plus FBR's withholding tax rate card for Tax Year 2027. Results are estimates. Check with FBR or a tax adviser before acting on them.