Token Tax in Punjab: 2026/27 Rates
Token tax in Punjab is the motor vehicle tax the Excise Department collects on every registered car, jeep and bike. For 2026/27, a car above 1000 cc pays 0.3% or 0.4% of its invoice price each year, while a bike or a small car pays once for life.
What Punjab token tax covers
First of all, the Punjab Motor Vehicles Taxation Act 1958 gives the province the right to tax every motor vehicle on its roads. People call it token tax because, in the past, owners received a paper token to show the tax was paid. Today, however, the proof sits on the MTMIS record as a "token paid up to" date.
Still, the bill you pay is more than token tax alone. The ePay challan for a private car usually shows four lines:
- Motor vehicle tax, the token tax itself.
- Income tax under section 234 of the Income Tax Ordinance, which the Excise Department collects for the FBR.
- Professional tax of Rs 200.
- A rebate, shown as a minus figure, when you pay early, and Rs 15 of platform charges.
This guide is independent and is not run by the government. Our how we check page explains where each rate comes from, and the figures below match the Excise Department's own table as of November 2026.
Punjab token tax rates for 2026/27
This year, the 2026 Punjab budget raised the yearly rate for private cars above 1000 cc for the first time since the percentage system began. Small cars and motorcycles, on the other hand, kept their one time amounts.
| Vehicle | 2026/27 | 2025/26 | How often |
|---|---|---|---|
| Motorcycle or scooter | Rs 1,500 | Rs 1,500 | Once, at registration |
| Car up to 1000 cc | Rs 20,000 | Rs 20,000 | Once, at registration |
| Car 1001 to 2000 cc | 0.3% of invoice price | 0.2% of invoice price | Every year |
| Car above 2000 cc | 0.4% of invoice price | 0.3% of invoice price | Every year |
| Electric vehicle | 99% concession | 95% concession | Every year |
Source: Excise, Taxation and Narcotics Control Department, Punjab, Motor Vehicle Tax page, checked November 2026.
Cars above 1000 cc: a share of the invoice price
From 1 July 2026, a car from 1001 to 2000 cc pays 0.3% of its invoice price each year, and a car above 2000 cc pays 0.4%. Here, the invoice price is the price on the purchase invoice used for the first registration. For example, a Rs 4,500,000 car of 1300 cc pays Rs 13,500 in token tax for the year.
Older cars, however, are less simple. The department's table still lists the fixed amounts used before the percentage system, such as Rs 1,800 for a 1300 cc car and Rs 9,000 for a 1600 cc car. Some calculators charge the higher of the two. So for a car registered before July 2024, trust the amount on your ePay challan over any estimate.
Cars up to 1000 cc: Rs 20,000 for life
A car of 1000 cc or less, such as a Suzuki Alto or a Cultus, pays Rs 20,000 once, at registration. After that, no yearly token tax is due. This is also why the MTMIS result for such a car shows a life time payment instead of a yearly date.
Motorcycles: Rs 1,500 for life
Similarly, a motorcycle or scooter pays Rs 1,500 once, at registration, whatever its engine size. Our bike verification Punjab guide shows how this appears on a bike result.
When a life time vehicle changes hands
Even so, the one time payment does not always end with the first owner. If a motorcycle or a car up to 1000 cc is transferred within ten years of registration, the new owner pays the life time amount again, reduced by 10% for each financial year since registration. After ten years, nothing more is due.
For instance, a 660 cc car transferred three years after registration attracts Rs 20,000 less 30%, which is Rs 14,000. A bike transferred after four years attracts Rs 1,500 less 40%, which is Rs 900.
Electric vehicles
Electric vehicles get a 99% concession on the motor vehicle tax for 2026/27, up from 95%. They also get a 95% concession on the registration fee. As a result, the yearly token tax on an electric car is close to nothing, although other lines can still appear on the challan.
Commercial vehicles
Goods vehicles, meanwhile, pay a yearly amount by their laden weight, and the 2026 budget tripled most of these rates. The department now lists:
- Up to 4,060 kg: Rs 1,000.
- 4,061 to 8,120 kg: Rs 6,600, up from Rs 2,200.
- 8,121 to 12,000 kg: Rs 12,000, up from Rs 4,000.
- 12,001 to 16,000 kg, including long trailers: Rs 18,000, up from Rs 6,000.
- Above 16,000 kg: Rs 24,000, up from Rs 8,000.
Income tax and professional tax on the token tax challan
In addition, the Excise Department collects advance income tax every year for the FBR on private cars above 1000 cc. Moreover, the amount depends on the engine size and on whether the owner is on the Active Taxpayers List. In the department's table, a non filer pays three times as much as a filer.
On top of that, every private vehicle pays Rs 200 in professional tax. So before you pay, check your status on the FBR Active Taxpayers List with your CNIC. After all, filing a return can cut the income tax line by two thirds.
The 10% rebate and the cost of paying late
The Excise Department gives a 10% rebate on the yearly token tax when the full year is paid by 31 August. In 2026 it confirmed the rebate again in July. The ePay app applies it on its own, as a minus line on the challan, so you do not need a code.
By contrast, paying late costs much more than the lost rebate. In June 2026 the director general warned defaulters of a 100% penalty surcharge and said their vehicles could be impounded on the spot. In the same month, the department suspended the registrations of more than 850,000 vehicles with unpaid tax, until the owners paid.
So the cheapest plan is simple. Pay in July or August, take the rebate, and keep the receipt on your phone.
How to pay token tax in Punjab online
Today most owners pay on the ePay Punjab app, run by the Punjab Information Technology Board. These steps follow the app as PakWheels described it in July 2026.
- Install ePay Punjab and open it.
- Tap Departments, then Excise and Taxation Department, then Token Tax.
- Type the registration number and tap the search icon.
- Check the breakdown: motor vehicle tax, income tax, professional tax, the rebate and the platform charge.
- Tap Generate Challan to get a 17 digit PSID.
- Pay the PSID in the app, in JazzCash or Zindigi, or in any bank app under Bill Payment and GoPb.
After the payment, the "token paid up to" date on the vehicle moves forward by a year. Alternatively, you can pay at a bank branch with a printed PSID, or at an e Khidmat Markaz, which lists token tax among its services.
Token tax verification: what a vehicle owes
Before you buy a used car, check how far its tax is paid. The MTMIS result shows the "token tax paid up to" date, and our vehicle verification Punjab form reads it with the number and the registration date. Separately, the ePay app shows the amount due today when you search the number, without paying anything.
Remember that arrears stay with the vehicle, not with the seller. As a result, unpaid years land on the buyer's ePay challan at the transfer. So agree in writing who pays them, and take the amount off the price if the seller will not.
Token tax when you buy or sell a vehicle
A transfer brings every unpaid tax to the surface, because the transfer challan adds any arrears to the fee. For a bike or a small car, the buyer may also owe part of the life time amount, as explained above. Our vehicle ownership transfer guide walks through the full bill.
Finally, to work out a figure for your own car before you pay, use our token tax calculator. It applies the rates on this page to your engine size, price and filer status.
Questions about token tax in Punjab
How much is the token tax on a 1000 cc car in Punjab?
A car of 1000 cc or less pays Rs 20,000 once, at registration, and therefore no yearly token tax after that. If it is transferred within ten years, the new owner pays the same amount less 10% for each year since registration.
Do I pay token tax on my bike every year?
No. Instead, motorcycles and scooters pay Rs 1,500 once, at registration, so the result shows a life time payment. A bike transferred within ten years of registration attracts part of that amount again, reduced by 10% for each year.
What is the invoice price if I bought the car used?
In short, it is the price on the invoice used at the first registration, not the price you paid the last owner. The Excise record keeps that value, which is why the ePay challan can show a figure you did not expect. Ask your Excise office if the value on record looks wrong.
What happens if I do not pay token tax?
First, the arrears grow, and in 2026 the department warned of a 100% penalty surcharge, roadside impounding and suspended registrations. A suspended vehicle cannot be transferred until the tax is paid. Paying by 31 August also earns a 10% rebate.
Do non filers pay more token tax?
The token tax itself is the same. However, the income tax collected on the same challan is higher for people who are not on the Active Taxpayers List. In the department's table it is three times the filer rate.
Is token tax for electric cars free in Punjab?
Almost. In fact, for 2026/27, electric vehicles get a 99% concession on the motor vehicle tax and a 95% concession on the registration fee. Other lines, such as professional tax, can still appear on the challan.
Sources
- Motor Vehicle TaxExcise, Taxation and Narcotics Control Department, Punjab Official
- Online tax calculator for motor vehiclesExcise, Taxation and Narcotics Control Department, Punjab Official
- ePay PunjabPunjab Information Technology Board Official
- Punjab proposes higher token tax on large vehicles, raises electric vehicle concession to 99 percentProfit, 18 June 2026
- Punjab offers 10 percent discount on motor vehicle token tax until August 31Profit, 7 July 2026
- How to pay Punjab token tax online via the ePay Punjab appPakWheels, 15 July 2026
- Excise warns token tax defaulters of 100 percent penalty surchargeDaily Pakistan, 2 June 2026
- Punjab suspends registrations of 850,000 vehiclesProPakistani, 23 June 2026
- Punjab increases token tax on all vehiclesProPakistani, July 2024
Work out your own token tax
Token tax in Punjab depends on your engine size, your invoice price and your filer status. Put your own numbers in the calculator, then pay on ePay before 31 August to keep the rebate.