Islamabad Token Tax 2026-27
Islamabad charges 0.25% of a car's invoice value a year for 1001–2000cc and 0.35% above 2000cc. Cars up to 1000cc pay Rs 20,000 once. A 1300cc car with a 45 lakh invoice pays about Rs 13,750 in 2026-27.
From the Finance Act 2026 Updated for 2026-27
01 Rates
Islamabad token tax rates for cars (2026-27)
Since 1 July 2026, Islamabad charges most cars a share of their invoice value instead of a fixed amount.
| Engine size | Token tax | Note |
|---|---|---|
| Up to 1000cc | Rs 20,000 once | Life time token |
| 1001–2000cc | 0.25% of invoice value a year | |
| Above 2000cc | 0.35% of invoice value a year |
Motorcycles: rates not covered here yet; check with Islamabad Excise.
02 Income tax
Income tax collected with the token
Excise also collects advance income tax under section 234 of the Income Tax Ordinance. It's the same in every province, doubled for non-filers, and adjustable against your tax return.
No income tax is collected on cars used in Pakistan for more than 10 years.
| Engine size | Filer, a year | Non-filer, a year | One-time (filer) |
|---|---|---|---|
| Up to 1000cc | Rs 800 | Rs 1,600 | Rs 10,000 |
| 1001–1199cc | Rs 1,500 | Rs 3,000 | Rs 18,000 |
| 1200–1299cc | Rs 1,750 | Rs 3,500 | Rs 20,000 |
| 1300–1499cc | Rs 2,500 | Rs 5,000 | Rs 30,000 |
| 1500–1599cc | Rs 3,750 | Rs 7,500 | Rs 45,000 |
| 1600–1999cc | Rs 4,500 | Rs 9,000 | Rs 60,000 |
| 2000cc and above | Rs 10,000 | Rs 20,000 | Rs 120,000 |
"One-time" applies where the token tax is paid once, as for cars up to 1000cc.
03 Examples
What you pay in Islamabad: two examples
1300cc car, invoice Rs 4,500,000 · filer
- Token tax
- Rs 11,250
- Income tax (s.234)
- Rs 2,500
- Each year
- Rs 13,750
Non-filer: Rs 16,250.
2400cc car, invoice Rs 15,000,000 · filer
- Token tax
- Rs 52,500
- Income tax (s.234)
- Rs 10,000
- Each year
- Rs 62,500
Non-filer: Rs 72,500.
04 Check and pay
How to check and pay Islamabad token tax online
Check what's due on the Excise system, then pay online or at a bank.
Check your vehicle
Open Islamabad Excise website and enter your registration number. It shows the owner details and the tax due.
Pay
Pay through the City Islamabad app or at an Islamabad Excise office. Check the latest options on the Islamabad Excise website.
Keep the receipt
Keep the payment receipt until the Excise record shows the tax as paid.
05 Answers
Questions about Islamabad token tax
Short answers from the law and Excise rules.
Calculate token taxHow much is token tax on a 1300cc car in Islamabad?
0.25% of the invoice value. For a car invoiced at Rs 4,500,000, that is Rs 11,250, plus Rs 2,500 income tax for a filer: Rs 13,750 in all.
Do non-filers pay more token tax?
The token tax itself is the same. The income tax collected with it under section 234 is doubled for people not on the Active Taxpayer List: Rs 2,500 becomes Rs 5,000 for a 1300cc car.
Is there token tax on old cars?
Yes, the token tax is due every year. But no income tax is collected on cars used in Pakistan for more than 10 years (section 234(2A)).
How do I check and pay token tax in Islamabad?
Check your vehicle on Islamabad Excise website and pay through City Islamabad app. See our token tax check guide for the steps.
What changed in Islamabad token tax in 2026?
From 1 July 2026 the Finance Act 2026 replaced the fixed amounts for private cars with a share of the invoice value: 0.25% a year up to 2000cc and 0.35% above. Cars up to 1000cc pay Rs 20,000 once.
Sources and last update
- West Pakistan Motor Vehicles Taxation Act 1958 as in force in ICT, Table 2 substituted by the Finance Act 2026
- Income Tax Ordinance 2001, section 234 and First Schedule Part IV Division III; Tenth Schedule (non-filers)
- Finance Act 2026 (Act XLIII of 2026), section 2
- FBR Withholding Tax Rates Card, updated to 30 June 2026
- Federal Board of Revenue (FBR)
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice. For your exact tax, check your salary certificate or ask a tax professional.