Vehicle token tax in Islamabad has entered a new era for fiscal year 2026-27, with the Excise & Taxation Department shifting from flat engine-capacity rates to an invoice-value-based structure under the Finance Act 2026.
If you own a car registered in the federal capital, understanding this new token tax slab is essential before you pay.
The good news is that the entire payment process, from checking your dues to generating a challan can now be completed online through the PAK App, without a single visit to the excise office.
Read more: Goodbye Static Timers: Islamabad to Launch AI-Powered Smart Traffic Signals – PakWheels Blog
Here’s everything you need to know about Islamabad’s token tax rates and how to pay them step by step.
Step 1: Log In
Open the PAK App and sign in using your CNIC, email, or phone number, or tap Sign in with PAK ID if you already have one. New users can register through Sign Up.
Step 2: Select the Federal Tab
On the home screen, you’ll see three tabs: Federal, Punjab, and Sindh. Since Islamabad falls under federal jurisdiction, make sure Federal is selected before proceeding.
Step 3: Go to Excise & Taxation
Scroll down past sections like Fuel Updates and City Guide until you reach Excise & Taxation. Tap Pay Token & Challan Fee.
Step 4: Enter Your Vehicle Number
You’ll land on the Token Tax screen. Enter your registration number in the format shown (e.g., ABC-123) and proceed.
Important: This facility only works for smart card holders. If your vehicle’s registration book hasn’t been converted to a smart card yet, you’ll need to get that done at your nearest excise office before you can pay online.
Step 5: Review Vehicle and Billing Details
The app pulls up your vehicle record from the Motor Registration Authority Islamabad, including your assessment number, filer status, registration details, and the period your tax is paid up to. Below that, the Billing Information section breaks down what you owe:
- Motor Vehicle Tax
- Income Tax
- Professional Tax
- Rebate (if applicable)
- Penalty and Motor Vehicle Tax Arrears (only if payments are overdue)
These combine into your Total Amount to be Paid, shown prominently near the bottom.
Step 6: Generate Your PSID
Select your payment method. Currently 1Link and tap Get PSID. The app generates a unique Payment Slip ID (PSID) tied to your vehicle, along with the total amount and due date. Note this number down; you’ll need it to complete payment.
Step 7: Pay via Mobile Banking App
The app walks you through the payment steps directly on screen:
- Log in to your mobile banking app.
- Select Invoice and Voucher Pay in 1-Bill.
- Enter your PSID and press OK.
- The due amount is automatically fetched and displayed.
- Confirm payment, a success message appears once the transaction goes through.
You can also pay via ATM or an internet banking portal using the same PSID under the 1-Bill/GoAIB-style bill payment option, depending on your bank.
Step 8: Confirm Payment
Once paid, your token tax record updates on the excise department’s system, and your vehicle’s “Tax Paid Upto” date extends by a year. No office visit, no paperwork, the entire process runs from your phone.
Read more: How to Pay Punjab Token Tax Online via the ePay Punjab App (2026) – PakWheels Blog
What’s the New Token Tax in Islamabad?
Under the Finance Act 2026, Islamabad’s token tax moved from a fixed engine-capacity fee to an invoice-value-based system, effective July 1, 2026:
| Engine Capacity | New Token Tax |
| Up to 1,000cc | Rs. 20,000 (flat) |
| 1,001cc – 1,300cc | 0.25% of invoice value |
| 1,301cc – 1,500cc | 0.25% of invoice value |
| 1,501cc – 2,000cc | 0.25% of invoice value |
| 2,001cc – 2,500cc | 0.35% of invoice value |
| Above 2,500cc | 0.35% of invoice value |
The shift hits bigger, pricier cars hardest.
A Toyota Corolla Altis Grande 1.8 now pays around Rs. 19,530 annually, up from roughly Rs. 5,000 under the old fixed-rate system, while a Honda City 1.2L’s tax has jumped from about Rs. 1,500 to nearly Rs. 12,000. Small cars under 1,000cc stay unaffected at a flat Rs. 20,000.
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Read more: New Islamabad Token Tax Rates Effective From July 1 – PakWheels Blog
Final Word
Islamabad’s shift to invoice-based token tax means your bill now depends on your car’s value, not just its engine size so it’s worth checking your exact dues on the PAK App before budgeting for renewal.
Stay tuned to PakWheels Blog for the latest updates on token tax rates, rebates, and deadlines across Pakistan. Have questions about your vehicle’s tax slab or ran into an issue on the app? Drop a comment below and let us know.
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