Token Tax Pakistan 2026 — Rates by Province, Online Payment & Complete Guide
What is Token Tax in Pakistan?
Token tax (also called motor vehicle tax or road tax) is an annual tax levied on all registered motor vehicles in Pakistan by provincial Excise & Taxation Departments. It is named after the physical token sticker that used to be affixed to a vehicle’s windshield as proof of payment — now replaced largely by digital records.
Token tax is mandatory for all registered vehicles — cars, motorcycles, trucks, buses, and rickshaws — and must be paid each year to keep your vehicle legally compliant. Non-payment results in fines, vehicle blocking on MTMIS (the national motor vehicle registration system), and inability to transfer ownership or obtain an M-Tag.
Token Tax vs Withholding Tax (Section 234) — Know the Difference
Many vehicle owners confuse token tax with Withholding Tax under Section 234 of the Income Tax Ordinance 2001. Both are collected together by the Excise Department at the same time, which causes the confusion. Here is the difference:
| Feature | Token Tax (Provincial) | WHT Section 234 (Federal) |
|---|---|---|
| Levied by | Provincial Excise Dept | Federal Board of Revenue (FBR) |
| Basis | Engine CC or invoice value | Engine CC (filer vs non-filer) |
| Filer discount | Limited (10% early payment rebate in Punjab) | Filers pay 50% of non-filer rate |
| Old vehicle exemption | 75% of regular rate for 10+ year vehicles | Fully exempt for 10+ year vehicles |
| Collection point | ePay Punjab / Excise office / bank | Collected alongside token tax |
When you pay your annual vehicle tax at the Excise office or online, you typically pay both amounts in one transaction. Your total bill = Token Tax + WHT (Section 234).
Punjab Token Tax Rates 2025–26
Punjab overhauled its token tax system and now uses a value-based calculation for vehicles above 1000cc, rather than a flat engine-CC rate. Rates are based on the vehicle’s ex-factory/invoice value at the time of first registration.
Punjab — Private Motor Car Token Tax
| Vehicle Category | Token Tax Rate | Notes |
|---|---|---|
| Up to 1000cc | Rs 20,000 (one-time lifetime) | Pay once at registration — no annual renewal |
| 1001cc to 2000cc | 0.2% of invoice value per year | E.g. Rs 3.5M car = Rs 7,000/year |
| Above 2000cc | 0.3% of invoice value per year | E.g. Rs 10M car = Rs 30,000/year |
| 10+ year old vehicle (any CC) | 75% of applicable annual rate | Also exempt from Section 234 WHT |
| Motorcycle (new at registration) | Rs 1,500 (one-time lifetime) | Paid at registration |
Early Payment Discount (Punjab): Pay your full annual token tax on or before August 31 and receive a 10% rebate on the token tax portion (not on Section 234 WHT). This is announced each fiscal year by the Punjab Excise Department — confirmed for 2025 and expected to continue in 2026.
Punjab — Withholding Tax (Section 234) Rates 2025–26
| Engine Capacity | Filer (PKR/year) | Non-Filer (PKR/year) |
|---|---|---|
| Up to 850cc | Rs 10,000 | Rs 20,000 |
| 851cc – 1000cc | Rs 1,500 | Rs 3,000 |
| 1001cc – 1300cc | Rs 1,750 | Rs 3,500 |
| 1301cc – 1500cc | Rs 2,500 | Rs 5,000 |
| 1501cc – 1800cc | Rs 3,500 | Rs 7,000 |
| 1801cc – 2000cc | Rs 4,500 | Rs 9,000 |
| 2001cc – 2500cc | Rs 8,000 | Rs 16,000 |
| Above 2500cc | Rs 12,000 | Rs 24,000 |
Note: Filers pay exactly 50% of non-filer rates. Filing your income tax return is free and can save thousands of rupees annually on vehicle tax alone.
Sindh Token Tax Rates 2025–26
| Vehicle Category | Token Tax | Notes |
|---|---|---|
| New car up to 1000cc | Rs 20,000 (one-time lifetime) | Paid at first registration |
| Older vehicles (above 1000cc) | Based on age + CC (calculator available) | Use Sindh Excise online calculator |
| Motorcycles up to 149cc | Rs 80 per year | One of the lowest rates in Pakistan |
For precise Sindh token tax calculations, use the official Sindh Excise online calculator at excise.gos.pk.
KP (Khyber Pakhtunkhwa) Token Tax Rates 2025–26
KP applies Section 234 Withholding Tax as the primary vehicle tax. Filer vs non-filer status makes a significant financial difference:
| Engine Capacity | Filer (PKR/year) | Non-Filer (PKR/year) |
|---|---|---|
| Up to 1000cc | Rs 2,500 | Rs 5,000 |
| 1001cc – 1500cc | Rs 3,000 | Rs 6,000 |
| 1501cc – 1800cc | Rs 6,000 | Rs 12,000 |
| 1801cc – 2500cc | Rs 9,000 | Rs 18,000 |
| Above 2500cc | Rs 12,000 | Rs 24,000 |
| Motorcycle (lifetime) | Rs 1,000 (one-time) | Rs 1,000 (one-time) |
Full KP rates at: excise_taxation.kp.gov.pk
Balochistan Token Tax Rates 2025–26
| Engine Capacity | Annual Token Tax (PKR) |
|---|---|
| Up to 1000cc | Rs 800 |
| 1001cc – 1500cc | Rs 1,200 |
| 1501cc – 2000cc | Rs 1,500 |
| Above 2000cc | Rs 1,800 |
| Motorcycle (lifetime) | Rs 1,500 (one-time) |
| Electric vehicles | Exempt (special EV exemption) |
Balochistan rates are effective from July 1, 2025 (Schedule of Taxes and Fees). Use the online calculator at excise.balochistan.gov.pk.
How to Pay Token Tax Online in Pakistan 2026
Punjab — Online Payment via ePay Punjab
- Visit epay.punjab.gov.pk or download the ePay Punjab app.
- Select “Motor Vehicle Tax.”
- Enter your vehicle’s registration number.
- The system calculates your due token tax + Section 234 WHT automatically.
- A PSID (Payment Slip ID) is generated.
- Pay the PSID at any branch of: HBL, UBL, MCB, Allied Bank, Bank of Punjab, NBP, via ATM, internet banking, or mobile banking.
- Receive payment confirmation and digital receipt.
Upcoming change: Punjab plans to integrate token tax payment into a single “One App” platform alongside EPA challans and traffic fines — announced May 2026. Watch for this update on Carr.pk.
Islamabad (ICT) — Online Payment
Islamabad vehicle owners can pay token tax online through the ICT Administration portal or via designated banks using a PSID. Details at ictadministration.gov.pk.
Sindh — Office / Bank Payment
Sindh primarily requires in-person payment at Excise and Taxation Department offices or designated banks. Visit excise.gos.pk for payment points in Karachi and other cities.
KP — Online and Office Payment
KP Excise & Taxation offers online services at excise_taxation.kp.gov.pk for motor vehicle tax calculation and payment guidance.
Token Tax Due Dates in Pakistan 2026
| Province / Region | Annual Due Date | Early Payment Discount Deadline |
|---|---|---|
| Punjab | June 30 (end of fiscal year) | August 31 (10% rebate) |
| Islamabad (ICT) | June 30 (deadline extended in some years) | Varies — check ICT portal |
| Sindh | June 30 | N/A |
| KP | June 30 | N/A |
Tip: Pay before June 30 to avoid penalties. In Punjab, paying before August 31 gets you the 10% discount — but only on the current fiscal year’s outstanding amount. Arrears from previous years are not discounted.
Penalties for Late Token Tax Payment
Failing to pay token tax on time carries significant consequences:
- Late fees: Range from 5% to 200% of the due tax amount depending on how overdue the payment is.
- Fixed fine: Rs 2,000 to Rs 10,000 depending on the duration of default.
- MTMIS blocking: Your vehicle is flagged in the national database — unable to transfer ownership or obtain documents.
- M-Tag denial: Token tax clearance is required for M-Tag issuance. See: M-Tag Registration Guide 2026.
- Motorway restrictions: Unpaid dues can prevent your vehicle from being cleared for motorway travel where M-Tags are compulsory — see M-Tag Now Compulsory in Islamabad.
- Court notice: Persistent non-payment can result in legal notices from the Excise Department.
Exemptions from Token Tax
- Electric vehicles (Balochistan): EVs are fully exempt from token tax in Balochistan.
- Government vehicles: Federal and provincial government-registered vehicles are typically exempt.
- Diplomatic vehicles: Embassy and consulate vehicles are exempt under diplomatic conventions.
- Section 234 WHT exemption: Vehicles 10 years old or older are exempt from Withholding Tax under Section 234 across all provinces.
- 25% reduction (Punjab): Vehicles 10 years or older also pay only 75% of the regular annual token tax rate in Punjab.
How to Check Token Tax Status Online
Before buying a used car, always verify token tax status to avoid inheriting arrears:
- Punjab: mtmis.excise.punjab.gov.pk — enter registration number
- Sindh: excise.gos.pk
- KP: excise_taxation.kp.gov.pk
- PakWheels MTMIS: pakwheels.com/mtmis-online-vehicle-verification (cross-province verification tool)
Real Examples — How Much Will You Pay?
To make this practical, here are real-world token tax estimates for common Pakistani cars in Punjab for 2025–26:
| Car | CC | Approx Invoice Value | Token Tax | WHT (Filer) | Total (Filer) |
|---|---|---|---|---|---|
| Suzuki Alto 660cc | 660cc | Rs 15–17 lakh | Rs 20,000 (lifetime) | Rs 10,000 | Rs 30,000 (one-time) |
| Suzuki Cultus 1000cc | 1000cc | Rs 24–26 lakh | Rs 20,000 (lifetime) | Rs 1,500/yr | Rs 21,500 first yr |
| Toyota Yaris 1300cc | 1300cc | Rs 38–42 lakh | Rs 7,600–8,400/yr | Rs 1,750/yr | ~Rs 9,500–10,000/yr |
| Honda Civic 1500cc | 1500cc | Rs 75–85 lakh | Rs 15,000–17,000/yr | Rs 2,500/yr | ~Rs 18,000–20,000/yr |
| Toyota Fortuner 2700cc | 2700cc | Rs 1.6–1.9 crore | Rs 48,000–57,000/yr | Rs 12,000/yr | ~Rs 60,000–70,000/yr |
Token tax amounts are approximate, based on the invoice-value formula. Use the official Punjab Excise calculator for exact figures.
For Pakistan’s latest premium car launches and their associated ownership costs, also read our coverage of the Audi A6 in Pakistan, Jaecoo J7 PHEV, and Hyundai Palisade launch preview.
Frequently Asked Questions (FAQs)
Q: What is the last date to pay token tax in Pakistan 2026?
A: The fiscal year deadline is June 30, 2026 for all provinces. In Punjab, paying before August 31 still qualifies for the 10% early payment discount on the current year’s token tax. After June 30, late penalties begin to accrue.
Q: Can I pay Punjab token tax online from home?
A: Yes. Use the ePay Punjab portal at epay.punjab.gov.pk or the ePay Punjab mobile app. Generate a PSID and pay via HBL, UBL, MCB, NBP, Bank of Punjab, or their respective ATMs and internet banking platforms.
Q: What is the token tax for a 1300cc car in Punjab?
A: A 1300cc car in Punjab (above 1000cc) pays 0.2% of invoice value annually as token tax, plus Withholding Tax of Rs 1,750/year (filer) or Rs 3,500/year (non-filer) under Section 234. For a Toyota Yaris at Rs 40 lakh, that’s approximately Rs 8,000 token tax + Rs 1,750 WHT = Rs 9,750/year total for a filer.
Q: What is the difference between a filer and non-filer for token tax?
A: Filers (those who file their annual income tax return with FBR) pay 50% less on Withholding Tax (Section 234) compared to non-filers. Filing is free and done via the FBR Iris portal at iris.fbr.gov.pk. There is no income requirement — even salaried individuals with zero tax liability should file.
Q: Is token tax the same across all provinces?
A: No. Each province sets its own token tax rates. Punjab uses an invoice-value percentage system. Balochistan uses fixed rates by CC. Sindh has a one-time lifetime tax for small cars. KP primarily applies Section 234 WHT rates. Always check your provincial Excise portal for exact current rates.
Q: What happens if I don’t pay token tax?
A: Your vehicle is flagged in MTMIS, making it impossible to transfer, obtain an M-Tag, or clear for motorway travel. Fines range from Rs 2,000 to Rs 10,000 initially, and can escalate to 200% of the unpaid tax for long-overdue cases. Court notices may follow persistent non-payment.
Q: Are electric vehicles exempt from token tax?
A: In Balochistan, EVs are fully exempt. Other provinces have not yet announced blanket EV token tax exemptions — check your provincial excise portal. Section 234 WHT exemptions for EVs may apply depending on FBR policy updates in the upcoming Finance Act 2026.
Q: How do I get a 10% discount on token tax in Punjab?
A: Pay your full outstanding token tax for the current fiscal year on or before August 31. The 10% rebate is automatically applied. This discount applies only to the token tax portion — not to Section 234 Withholding Tax.
Stay current with Pakistan’s vehicle tax regulations, new car launches, and ownership guides at Carr.pk — your trusted source for Pakistani auto news. Also read: M-Tag Registration Guide 2026 and M-Tag Compulsory for Motorcycles in Islamabad.
