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

Token tax in Punjab for 2026-27 is 0.3% of invoice price a year for 1001cc to 2000cc cars and 0.4% above 2000cc. Rates, filer tax and ePay steps.

By Hassam Imtiaz · Updated · 7 min read

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
Summarize it for me

AI 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.

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 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 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 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.

Every car and motorcycle row also carries Rs 200 professional tax. If you aren’t a filer yet, see filer vs non-filer and how to check your 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.

Paying Punjab token tax
  1. You Look up vehicle Registration number in ePay Punjab
  2. ePay Generate PSID 17-digit Payment Slip ID for the exact amount
  3. You, your bank Pay Bank app, ATM or bank counter
  4. Excise Token updated 'Token Paid Upto' moves forward one year

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 and car insurance. Property owners pay a separate excise tax: see property tax in Punjab.

More guides: vehicle transfer in Punjab, how to become a filer, income tax slabs 2026-27, 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

  1. Motor Vehicle Tax: rates of registration, transfer and token tax, Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
  2. The Punjab Finance Act 2024, Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
  3. Withholding Income Tax Rate Card, updated to 30 June 2026, Federal Board of Revenue (accessed 13 Oct 2026)
  4. Get 10% Rebate on Motor Vehicle Token Tax till 31 August 2026, Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
  5. Online Tax Calculator for Motor Vehicles, Excise, Taxation & Narcotics Control Department, Punjab (accessed 13 Oct 2026)
  6. ePay Punjab (App Store listing), Punjab Information Technology Board (accessed 13 Oct 2026)
  7. Punjab proposes higher token tax on large vehicles, raises electric vehicle concession to 99%, Profit (Pakistan Today) (accessed 13 Oct 2026)
  8. Punjab plans to collect 42 per cent more tax in next fiscal year, Dawn (accessed 13 Oct 2026)
  9. Punjab proposes tax reforms, revenue measures in Finance Bill 2026-27, APP (accessed 13 Oct 2026)
  10. Punjab token tax penalty 2026: up to twice the tax due, Pakistan Era (accessed 13 Oct 2026)
  11. Punjab Implements New Token Tax, PakWheels (accessed 13 Oct 2026)
  12. How to Pay Punjab Token Tax Online via the ePay Punjab App (2026), PakWheels (accessed 13 Oct 2026)

Photo: Jugni / CC BY-SA 3.0

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