What token tax is
Token tax is a yearly provincial levy on motor vehicles. It pays for roads and is collected by the excise and taxation department of the province where the vehicle is registered. When you pay it, you'll often see a second charge on the same challan: federal advance income tax under Section 234. That part goes to FBR, depends on your filer status, and is not included in this calculator.
Punjab rates for 2026-27
| Vehicle | Token tax |
|---|---|
| Car up to 1000cc | Rs 1,200 a year |
| Car 1001 – 2000cc | 0.3% of invoice value a year |
| Car above 2000cc | 0.4% of invoice value a year |
| Motorcycle up to 70cc | Rs 400 |
| Motorcycle 71 – 100cc | Rs 500 |
| Motorcycle 101 – 150cc | Rs 1,000 |
| Motorcycle 151 – 200cc | Rs 1,500 |
| Motorcycle above 200cc | Rs 2,000 |
Electric vehicles registered in Punjab get a 99% concession, paying just 1% of the normal token tax. Hybrids don't qualify.
Examples
- A 660cc hatchback pays the fixed Rs 1,200.
- A 1300cc sedan with an invoice value of Rs 5.5 million pays 0.3%, or Rs 16,500 a year.
- A 2400cc SUV worth Rs 18 million pays 0.4%, or Rs 72,000 a year.
- A 125cc motorcycle pays Rs 1,000 a year.
The early payment rebate
Punjab gives a 10% rebate on the provincial token tax if you pay before the deadline announced each year, which has usually been the end of August. The rebate doesn't apply to the federal advance tax or the small professional tax. Paying early through the ePay Punjab app takes a few minutes.
Lifetime token for motorcycles
Motorcycle owners can choose to pay a one-off lifetime token instead of yearly payments. For small bikes it pays for itself in a few years, and you never have to worry about a lapsed token at a police checkpoint.
Other provinces
Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad set their own token tax rates, and they differ quite a bit. Islamabad raised rates in Budget 2026-27. If your vehicle is registered outside Punjab, check your province's excise website for its current table. We plan to add other provinces to this calculator.
What happens if you don't pay?
Unpaid token tax builds up with penalties, and you can't transfer or sell the vehicle until all arrears are cleared. Traffic police can also fine you. Setting a yearly reminder in July is the easiest way to stay current.
Commercial vehicles
Taxis, rickshaws, goods vehicles and buses have separate token tax schedules, usually based on seating capacity or load weight rather than engine size. This calculator is for private vehicles only.
Buying a used car? Check the token first
Before you buy a second-hand car, ask for its token tax history or check it online on the excise department's website using the registration number. Unpaid tokens stay with the vehicle, not the seller. If you buy a car with three years of arrears, you'll have to clear them, with penalties, before the transfer goes through. Agree with the seller that they'll pay any arrears, and get it in writing.
Smart cards and online records
Punjab and Islamabad now issue vehicle registration on smart cards, and token payments update the online record within a day or two. Keep the digital receipt on your phone. If a traffic warden asks, the online record is usually enough proof.
Related calculators
- Vehicle registration tax calculator, for the one-time advance tax when you first register a car.
- Filer vs non-filer guide, because the federal advance tax on the token challan depends on it.
- All calculators, for other everyday taxes.
Frequently asked questions
How much is token tax on a 1000cc car in Punjab?
Rs 1,200 a year for 2026-27, plus any federal advance tax collected on the same challan.
How is token tax worked out for bigger cars?
From 1001cc to 2000cc it is 0.3% of the invoice value, and above 2000cc it is 0.4%.
Is there a discount for paying early?
Yes. Punjab gives a 10% rebate on the provincial token tax if you pay before the yearly deadline.
Does this include FBR's Section 234 tax?
No. The federal advance tax collected with token tax depends on your filer status and is separate.
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.