Islamabad Token Tax 2026-27: Rates, Online Payment and Other Vehicle Taxes
Islamabad token tax changed significantly on 1 July 2026. Under the Finance Act 2026, most Islamabad-registered cars now pay token tax as a percentage of their invoice value instead of a small fixed amount based on engine size. For many owners, the bill has jumped several times over.
Islamabad Token Tax Rates for 2026-27
The Finance Act 2026 sets the following annual token tax for private vehicles registered in Islamabad, effective from 1 July 2026, as reported by PakWheels and ProPakistani:
| Engine capacity | Annual token tax |
|---|---|
| Up to 1,000cc | Rs 20,000 (fixed) |
| 1,001cc to 1,300cc | 0.25% of invoice value |
| 1,301cc to 1,500cc | 0.25% of invoice value |
| 1,501cc to 2,000cc | 0.25% of invoice value |
| 2,001cc to 2,500cc | 0.35% of invoice value |
| Above 2,500cc | 0.35% of invoice value |
One figure deserves a second look. The fixed Rs 20,000 for cars up to 1,000cc is higher than the value-based tax on many larger cars. Therefore, confirm this amount with the official notification or the Excise helpdesk before you pay. The law also sets separate rates for motor cabs and commercial vehicles.
What Changed from Last Year
Until June 2026, Islamabad charged token tax as a fixed amount for each engine-capacity band. The new law links the tax to what the car cost, so a more expensive car now pays more even within the same engine band.
PakWheels estimated the impact on a few popular cars when the new rates took effect:
| Vehicle | Estimated new token tax | Previous token tax |
|---|---|---|
| Honda City 1.2L CVT (1,199cc) | About Rs 11,917 | About Rs 1,500 |
| Changan Alsvin MT Comfort (1,370cc) | About Rs 9,661 | About Rs 4,000 |
| Jetour Dashing (1,498cc) | About Rs 21,237 | About Rs 4,000 |
| Toyota Corolla Altis Grande X 1.8 (1,798cc) | About Rs 19,530 | About Rs 5,000 |
How to Calculate Your Islamabad Token Tax
For most cars, the Islamabad token tax calculation takes one line of arithmetic: multiply the invoice value by the rate for your engine band. Here are three worked examples:
- A 1,300cc car invoiced at Rs 5,000,000: 0.25% of Rs 5,000,000 comes to Rs 12,500 a year.
- An 1,800cc car invoiced at Rs 8,000,000: 0.25% of Rs 8,000,000 comes to Rs 20,000 a year.
- A 2,400cc SUV invoiced at Rs 12,000,000: 0.35% of Rs 12,000,000 comes to Rs 42,000 a year.
In most cases, the invoice value comes from the vehicle's registration record, which is why the result can differ from today's market price. For a quick estimate, use our vehicle tax calculator, and then confirm the final figure on your payment slip.
Advance Income Tax: Filers vs Non-Filers
Along with token tax, the Excise office collects advance income tax on motor vehicles on behalf of the Federal Board of Revenue. The ICT Administration lists income tax as part of the fee at registration as well.
Specifically, the rate depends on whether the owner appears on the FBR's Active Taxpayers List. In simple terms, filers pay the lower rate, while non-filers pay considerably more. So, check your status on the FBR website before you pay, because becoming a filer can cut the bill noticeably.
How to Pay Islamabad Token Tax
The Islamabad token tax runs on the tax year from 1 July to 30 June. You have several ways to pay it:
- City Islamabad app: the official ICT app offers token tax payments from your phone.
- ICT Excise online services portal: sign in through the button above to use the department's online vehicle services.
- Designated bank branches: pay against the payment slip or challan the Excise office issues.
- Excise office in Sector H-9: staff can generate the slip and answer questions about your amount.
Once you pay, keep the receipt with your vehicle documents. The Excise office may ask for it at a transfer, and it proves payment while the online record updates.
Deadline and Late Payment Rules
Since the tax covers the year from July to June, pay it early in the tax year to stay clear of penalties. The department announces any specific deadline or relief on its official channels, so check islamabadexcise.gov.pk each July.
However, new vehicles follow a slightly different rule. When you register a vehicle part-way through the year, you pay token tax and income tax only for the remaining months, according to the registration date. Also, register within 60 days of the invoice date, because a late fee applies after that.
Other Vehicle Taxes and Fees in Islamabad
Of course, token tax is only one part of the cost of owning a vehicle in the capital. The table below lists the other main charges and when they apply.
| Charge | When it applies | Key detail |
|---|---|---|
| Registration fee | New vehicle registration | Paid with advance tax, token tax and income tax |
| Advance tax at registration | New vehicle registration | Collected at the time of registration |
| Transfer processing fee | Change of ownership | Rs 1,200 to Rs 3,000, paid at the National Bank of Pakistan |
| Advance tax at transfer | Vehicles registered for less than five years | Reduces by 10% for each year since first registration |
| Number plate fee | New registration | Paid in cash to the data entry operator |
| Special number fee | When you choose a special number | Set out in the department's special number schedule |
| Professional tax | Commercial vehicles | Added to the registration charges |
Checking Tax on a Used Car Before You Buy
Buyers should always confirm the Islamabad token tax status before paying for a used car. Fortunately, you can check it in minutes.
First, run a vehicle verification in Islamabad, which shows the token tax status recorded against the vehicle. Then look up the excise records with an Islamabad vehicle challan check, and ask the seller for the latest paid receipt.
Frequently Asked Questions About Islamabad Token Tax
How much is the Islamabad token tax in 2026-27?
Under the Finance Act 2026, cars from 1,001cc to 2,000cc pay 0.25% of the invoice value, and cars above 2,000cc pay 0.35%. Cars up to 1,000cc pay a reported fixed Rs 20,000, which you should confirm with the Excise office.
Can I pay my vehicle tax online in Islamabad?
Yes. The City Islamabad app offers token tax payments, and the ICT Excise online services portal handles several vehicle services. You can also pay at designated bank branches against the payment slip.
When is the Islamabad token tax due?
The tax covers the year from 1 July to 30 June, so pay it early in that year. Also, the department announces any specific deadline or relief on its official website and social channels.
Do non-filers pay more tax on vehicles in Islamabad?
Yes. Although the token tax itself follows the rate table, the advance income tax collected with it is higher for owners who are not on the FBR's Active Taxpayers List.
Is there a lifetime token tax option in Islamabad?
Some provinces offer a one-time lifetime token tax for certain vehicles. For Islamabad, ask the Excise helpdesk on 051-9265500 whether any lifetime option applies to your vehicle under the current law.
How do I check the Islamabad token tax paid on a used car?
Run a vehicle details check, which shows the token tax status, and ask the seller for the latest paid receipt. Clearing any arrears before the transfer protects you from inheriting them.
Stay Ahead of Your Islamabad Token Tax
The new invoice-value system makes the Islamabad token tax larger and more personal to each car. Work out your amount, pay early in the tax year and keep every receipt with your vehicle documents.
So, use the online services button above, or pay through the City Islamabad app. For every other ICT service, visit our MTMIS Islamabad guide, or reach us through the Contact Us page.
Disclaimer: MTMIS Pakistan is an independent information website and is not affiliated with the Excise and Taxation Department, ICT Administration or the Federal Board of Revenue. Tax rates change with each budget, so always confirm the amount with the official department before you pay.
Last reviewed: September 2026