Motor Vehicle Tax Calculator Pakistan
Car registration advance tax (231B), annual token tax (234) and transfer tax — filer vs non-filer, by engine capacity. Updated for Tax Year 2026-27.
When you buy/register a new car in Pakistan, you pay advance income tax under Section 231B — from 0.5% to 12% of the vehicle's value for filers (by engine capacity), and 3× that for non-filers. Every year you also pay token tax under Section 234 (Rs 800 to Rs 10,000 for filers; double for non-filers). Transferring a car carries a separate fixed tax that drops 10% each year and becomes nil after 5 years.
Section 231B — Registration Advance Tax (% of value)
| Engine Capacity | Filer | Non-Filer (3×) |
|---|---|---|
| Up to 850cc | 0.5% | 1.5% |
| 851 – 1,000cc | 1% | 3% |
| 1,001 – 1,300cc | 1.5% | 4.5% |
| 1,301 – 1,600cc | 2% | 6% |
| 1,601 – 1,800cc | 3% | 9% |
| 1,801 – 2,000cc | 5% | 15% |
| 2,001 – 2,500cc | 7% | 21% |
| 2,501 – 3,000cc | 9% | 27% |
| Above 3,000cc | 12% | 36% |
Value = invoice value (local) or import value incl. customs duty, FED & sales tax (imported). Where CC is N/A (e.g. EVs) and value ≥ Rs 5M, a flat 3% applies.
Section 234 — Annual Token Tax (fixed)
| Engine Capacity | Filer / year | Non-Filer (2×) |
|---|---|---|
| Up to 1,000cc | Rs 800 | Rs 1,600 |
| 1,001 – 1,199cc | Rs 1,500 | Rs 3,000 |
| 1,200 – 1,299cc | Rs 1,750 | Rs 3,500 |
| 1,300 – 1,499cc | Rs 2,500 | Rs 5,000 |
| 1,500 – 1,599cc | Rs 3,750 | Rs 7,500 |
| 1,600 – 1,999cc | Rs 4,500 | Rs 9,000 |
| 2,000cc & above | Rs 10,000 | Rs 20,000 |
Section 231B(2) — Transfer Tax (fixed)
| Engine Capacity | Filer | Non-Filer (3×) |
|---|---|---|
| Up to 850cc | Nil | Nil |
| 851 – 1,000cc | Rs 5,000 | Rs 15,000 |
| 1,001 – 1,300cc | Rs 7,500 | Rs 22,500 |
| 1,301 – 1,600cc | Rs 12,500 | Rs 37,500 |
| 1,601 – 1,800cc | Rs 18,750 | Rs 56,250 |
| 1,801 – 2,000cc | Rs 25,000 | Rs 75,000 |
| 2,001 – 2,500cc | Rs 37,500 | Rs 112,500 |
| 2,501 – 3,000cc | Rs 50,000 | Rs 150,000 |
| Above 3,000cc | Rs 62,500 | Rs 187,500 |
Transfer tax reduces by 10% for each year since first registration and is nil after 5 years.
Frequently Asked Questions
How much tax do I pay when buying a new car in Pakistan?
You pay advance income tax under Section 231B — 0.5% to 12% of the vehicle's value depending on engine capacity (a filer), or 3× that as a non-filer — collected at registration, plus provincial registration/number-plate fees.
Is the registration tax a percentage or a fixed amount?
For the current year it is a percentage of the vehicle's value across all engine-capacity bands (0.5%–12% for filers). Older fixed-rupee tables have been replaced.
How much higher is tax for a non-filer?
Registration and transfer tax are 3× the filer rate; the annual token tax is 2× the filer amount.
Do I pay transfer tax on an old car?
Transfer tax falls 10% for every year since first registration and becomes nil after 5 years. Cars up to 850cc are exempt from transfer tax.
Can I avoid the higher non-filer rate?
Yes — get on the Active Taxpayers List by filing your return before you register or transfer the vehicle. Use our ATL Check to confirm your filer status.
Sources & References
- Income Tax Ordinance, 2001 — Sections 231B & 234; First Schedule, Part IV (Divisions III & VII)
- Rates as amended up to the Finance Act, 2026 (Tax Year 2026-27)
- Federal Board of Revenue — fbr.gov.pk