# Token tax in Punjab 2026-27: rates and how to pay online

URL: https://which.pk/money/guides/token-tax-punjab/
Author: Hassam Imtiaz
Updated: 13 Oct 2026

## Summary

For 2026-27, Punjab charges token tax of 0.3% of invoice price a year on cars from 1001cc to 2000cc and 0.4% above 2000cc, up from 0.2% and 0.3%. Cars up to 1000cc pay Rs 20,000 once and motorcycles Rs 1,500. FBR's section 234 income tax and Rs 200 professional tax come on top, with non-filers paying more. You pay through the ePay Punjab app with a PSID, and paying the full year by 31 August earns a 10% rebate.

## Key facts

- 1001cc to 2000cc (2026-27): 0.3% of invoice price a year
- Above 2000cc (2026-27): 0.4% of invoice price a year
- Car up to 1000cc: Rs 20,000 lifetime
- Early-payment rebate: 10% by 31 August

Token tax in Punjab for 2026-27 is **0.3% of the invoice price a year** for cars from 1001cc to 2000cc, and **0.4%** above 2000cc, according to the Excise, Taxation & Narcotics Control Department's rate table. Cars up to 1000cc pay **Rs 20,000 once**, and motorcycles Rs 1,500. FBR income tax and Rs 200 professional tax are added to the bill. You pay through the ePay Punjab app. Rates are as of October 2026.

Token tax is the provincial motor vehicle tax, charged under the Motor Vehicle Tax Act 1958 and collected by the excise department.

## What are the token tax rates in Punjab for 2026-27?

The excise department's rate table, which we read on 13 October 2026, lists these rates for private vehicles:

| Vehicle | 2026-27 | 2025-26 | Old fixed rate (2023-24 column) |
|---|---|---|---|
| Motorcycle | Rs 1,500 once, at registration | Rs 1,500 | Rs 1,500 |
| Car up to 1000cc | Rs 20,000 once (lifetime) | Rs 20,000 | Rs 15,000 |
| 1001cc to 1300cc | 0.3% of invoice price a year | 0.2% | Rs 1,800 |
| 1301cc to 1500cc | 0.3% of invoice price a year | 0.2% | Rs 6,000 |
| 1501cc to 2000cc | 0.3% of invoice price a year | 0.2% | Rs 9,000 |
| 2001cc to 2500cc | 0.4% of invoice price a year | 0.3% | Rs 12,000 |
| Above 2500cc | 0.4% of invoice price a year | 0.3% | Rs 15,000 |

The Punjab Finance Act 2024 moved cars above 1000cc from fixed amounts to a share of invoice value. It also set a floor: if the percentage gives less than the old fixed rate, you pay the old rate. We couldn't open the 2026 Act to check that the floor still applies.

**How we confirmed the 2026-27 increase:** The Punjab Finance Bill 2026 proposed raising 0.2% to 0.3% and 0.3% to 0.4% (Dawn and Profit, 17 and 18 June 2026). We couldn't open the final Finance Act 2026 on the Punjab Code website. The excise department's own table lists 0.3% and 0.4% for 2026-27, so we use those.

## How much is token tax on a 1300cc car in 2026-27?

There are no fixed slabs above 1000cc any more, so the amount depends on your car's invoice price. A 1300cc car pays 0.3%, the same rate as any car from 1001cc to 2000cc.

**1300cc car, Rs 50 lakh invoice, filer:** About Rs 17,700 for 2026-27 (Token tax 0.3% = Rs 15,000, plus Rs 2,500 income tax (FBR, 1300cc to 1499cc) and Rs 200 professional tax. A non-filer pays Rs 20,200. Our calculation; ePay shows your exact bill.)

The excise page doesn't say which invoice value it uses for an older car. Check your own figure in the department's [token tax calculator](https://mvrs.punjab.gov.pk/gs_calculators/tokentax/calculate) or in the ePay app before you pay.

## What is lifetime token tax in Punjab?

Motorcycles and cars up to 1000cc don't pay every year. They pay once, at registration: **Rs 1,500** for a motorcycle or scooter and **Rs 20,000** for a car up to 1000cc. PakWheels reported in July 2024 that the car amount went up from Rs 15,000.

The catch comes when you buy one used. If the vehicle is transferred within ten years of registration, the lifetime token is charged again, with a rebate of 10% for each financial year since registration. After ten years, nothing is charged.

On our reading, a 1000cc car transferred after three full financial years carries Rs 14,000 (Rs 20,000 less 30%), on top of the transfer fee. The excise transfer calculator shows the exact amount. See [vehicle transfer in Punjab](/money/guides/vehicle-transfer-punjab/) for the rest of the transfer costs.

## How much income tax do filers and non-filers pay with token tax?

On top of the provincial tax, the excise department collects FBR's **section 234 income tax** on motor vehicles. FBR's withholding tax card, updated to 30 June 2026, sets these annual amounts for private cars:

| Engine size | Filer (on the ATL) | Non-filer |
|---|---|---|
| 1001cc to 1199cc | Rs 1,500 | Rs 3,000 |
| 1200cc to 1299cc | Rs 1,750 | Rs 3,500 |
| 1300cc to 1499cc | Rs 2,500 | Rs 5,000 |
| 1500cc to 1599cc | Rs 3,750 | Rs 7,500 |
| 1600cc to 1999cc | Rs 4,500 | Rs 9,000 |
| 2000cc and above | Rs 10,000 | Rs 20,000 |

The ATL is FBR's Active Taxpayer List, which decides whether you count as a filer. For a car up to 1000cc, where the provincial tax is paid as a lump sum, FBR's card sets Rs 10,000 for a filer and Rs 20,000 for a non-filer.

**The excise page shows higher non-filer amounts:** Punjab's excise rate table lists non-filer income tax at three times the filer amount (for example Rs 7,500 instead of Rs 5,000 for a 1300cc car). FBR's card says double. We show FBR's figures because the tax is federal; the ePay breakdown shows what you will actually be charged.

Every car and motorcycle row also carries **Rs 200 professional tax**. If you aren't a filer yet, see [filer vs non-filer](/business/guides/filer-vs-non-filer/) and [how to check your filer status](/business/guides/how-to-check-filer-status/).

## How do I pay token tax online in Punjab?

The excise department sends online payments to **ePay Punjab**, a payment app published by the Punjab Information Technology Board (PITB). The app covers Excise & Taxation, the Board of Revenue and Industries.

1. **Install ePay Punjab** from the Play Store or App Store, or open epay.punjab.gov.pk.
2. **Go to Departments, then Excise & Taxation, then Token Tax.**
3. **Enter your registration number.** The screen shows the owner, the vehicle and a "Token Paid Upto" date.
4. **Check the breakdown:** motor vehicle tax, income tax, professional tax, any rebate and a Rs 15 platform charge.
5. **Tap Generate Challan.** You get a 17-digit PSID (Payment Slip ID), also sent by email. It expires after a few days.
6. **Pay the PSID** in your bank app or internet banking (Bill Payment, then GoPb), at a 1Link member bank's ATM, or at a bank counter.

After payment the "Token Paid Upto" date moves forward one year. Steps 2 to 6, the Rs 15 charge and the GoPb menu come from a PakWheels guide of 15 July 2026, because ePay's website didn't load for us. PakWheels also lists JazzCash and Zindigi as in-app options.

To check whether a car you are buying has paid its token tax, the excise website links to an online vehicle verification service (mtmis.excise.punjab.gov.pk). The department's helpline is 0800-08786.

## What is the last date for token tax in Punjab?

Token tax is charged per financial year. If you pay the **whole year's tax on or before 31 August**, you get a **10% rebate** on the token tax. The department advertised the 2026 deadline as 31 August 2026, so for 2026-27 the rebate has gone.

Late payment can carry a penalty. Section 9 of the Motor Vehicles Taxation Act allows a penalty of up to twice the tax due, according to Pakistan Era (1 October 2026); we couldn't open the Act to check. The same report quoted officials on a 100% penalty and checks on defaulters from 1 October 2026, which the excise site doesn't state.

## What about electric and commercial vehicles?

The excise page says electric vehicles get **95% off** registration fee and motor vehicle tax. The 2026 Finance Bill proposed raising that to 99% (Profit, APP, June 2026), but the excise page still shows 95%, so we couldn't confirm the change.

For goods vehicles, the excise page lists annual tax from Rs 1,000 (up to 4,060 kg) to Rs 8,000 (above 16,000 kg). The bill proposed tripling the upper bands, for example Rs 24,000 above 16,000 kg. We couldn't confirm that either.

If you are still choosing a car, token tax is a small yearly cost next to [car financing](/money/guides/car-financing-pakistan/) and [car insurance](/money/guides/car-insurance-pakistan/). Property owners pay a separate excise tax: see [property tax in Punjab](/property/guides/property-tax-punjab/).

More guides: [vehicle transfer in Punjab](/money/guides/vehicle-transfer-punjab/), [how to become a filer](/business/guides/how-to-become-filer/), [income tax slabs 2026-27](/business/guides/income-tax-slabs-2026-27/), [Money](/money/).

## Questions people ask

### How much is token tax on a 1300cc car in Punjab in 2026-27?

0.3% of the car's invoice price a year. On a Rs 50 lakh invoice that is Rs 15,000, plus Rs 2,500 income tax for a filer under FBR's rate card and Rs 200 professional tax.

### What is lifetime token tax in Punjab?

Cars up to 1000cc pay Rs 20,000 once at registration, and motorcycles pay Rs 1,500. If the vehicle is transferred within ten years, the new owner pays it again, less 10% for each financial year since registration.

### How do I pay token tax online in Punjab?

Use the ePay Punjab app from the Punjab Information Technology Board. Enter your registration number, generate a PSID and pay it by internet banking, ATM or at a bank counter.

### What is the last date for token tax in Punjab?

To get the 10% rebate, you pay the full year's tax by 31 August. For 2026-27 that date has passed, so you now pay the full amount.

## Sources

- [Motor Vehicle Tax: rates of registration, transfer and token tax](https://excise.punjab.gov.pk/motorvehicle_tax), Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
- [The Punjab Finance Act 2024](https://excise.punjab.gov.pk/system/files/punjab-finance-act-2024-pdf.pdf), Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
- [Withholding Income Tax Rate Card, updated to 30 June 2026](https://download1.fbr.gov.pk/Docs/202681113864992WithholdingTaxRatesCard2027.pdf), Federal Board of Revenue (accessed 13 Oct 2026)
- [Get 10% Rebate on Motor Vehicle Token Tax till 31 August 2026](https://excise.punjab.gov.pk/node/4674), Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
- [Online Tax Calculator for Motor Vehicles](https://excise.punjab.gov.pk/motortax), Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
- [ePay Punjab (App Store listing)](https://apps.apple.com/app/id1465068821), Punjab Information Technology Board (accessed 13 Oct 2026)
- [Punjab proposes higher token tax on large vehicles, raises electric vehicle concession to 99%](https://profit.pakistantoday.com.pk/2026/06/18/punjab-proposes-higher-token-tax-on-large-vehicles-raises-electric-vehicle-concession-to-99percent), Profit (Pakistan Today) (accessed 13 Oct 2026)
- [Punjab plans to collect 42 per cent more tax in next fiscal year](https://www.dawn.com/news/amp/2008417), Dawn (accessed 13 Oct 2026)
- [Punjab proposes tax reforms, revenue measures in Finance Bill 2026-27](https://www.app.com.pk/?p=1228321), APP (accessed 13 Oct 2026)
- [Punjab token tax penalty 2026: up to twice the tax due](https://pakera.pk/punjab-token-tax-penalty-october-2026/), Pakistan Era (accessed 13 Oct 2026)
- [Punjab Implements New Token Tax](https://www.pakwheels.com/blog/?p=193317), PakWheels (accessed 13 Oct 2026)
- [How to Pay Punjab Token Tax Online via the ePay Punjab App (2026)](https://www.pakwheels.com/blog/how-to-pay-punjab-token-tax-online-via-the-epay-punjab-app-2026/), PakWheels (accessed 13 Oct 2026)