Pakistan car tax calculator (Islamabad token tax, 2026-27)

How car tax in Pakistan is calculated

The **Finance Act 2026** set the motor vehicle (token) tax for the **Islamabad Capital Territory** from 1 July 2026: **Rs20,000 for life** up to 1000cc, **0.25%** of the invoice value a year from 1001cc to 2000cc and **0.35%** above. With it, section 234 of the Income Tax Ordinance collects an advance income tax from **Rs1,500** to **Rs10,000** a year by engine size above 1000cc; up to 1000cc it is a **Rs10,000** lump sum with the lifetime tax.

On registration, section 231B collects advance income tax of **0.5%** up to 850cc, then 1%, 1.5%, 2%, 3%, 5%, 7% and 9%, and **12%** above 3000cc, of the value including duties and taxes. A new 1500cc car with a Rs6 million invoice pays Rs120,000 once, then Rs15,000 + Rs3,750 a year — **Rs138,750** in the first year.

Someone not on the FBR active taxpayers’ list pays the section 231B tax **three times over** (+200%) and the section 234 tax twice (Tenth Schedule). Electric cars, the registration fee, cars over ten years old and other provinces are not modelled; the page asks for an engine size of at least 1cc. Estimate, not tax advice.