Punjab token tax rates 2026-27: cars, motorcycles and commercial vehicles
Token tax in Punjab for 2026-27 follows one rule for most cars: the amount depends on the invoice price of the vehicle, not on a fixed slab. Cars up to 1000cc pay a one-time lifetime token tax of Rs 20,000, cars from 1001cc to 2000cc pay 0.3 percent of the invoice price every year, and cars above 2000cc pay 0.4 percent of the invoice price every year. Motorcycles pay a lifetime token tax of Rs 1,500 at registration. This guide sets out the full structure, works the percentages into rupee examples, and ends with the check and payment routes, inside the wider system described in MTMIS Punjab: the complete guide to online vehicle verification.
Table of contents
- The 2026-27 token tax structure at a glance
- Why the amount is a percentage of invoice price
- Worked examples in rupees
- Token tax for motorcycles
- Token tax for commercial vehicles
- Electric vehicles and the 99 percent exemption
- The 10 percent rebate and the 31 August date
- How to check the exact amount and pay
- Frequently asked questions
The 2026-27 token tax structure at a glance
The table below states the token tax structure that the Excise and Taxation Department applies for the financial year 2026-27.
| Vehicle category | Token tax 2026-27 | Payment pattern |
|---|---|---|
| Cars up to 1000cc | Rs 20,000 | One time, lifetime |
| Cars from 1001cc to 2000cc | 0.3% of invoice price | Every year |
| Cars above 2000cc | 0.4% of invoice price | Every year |
| Motorcycles | Rs 1,500 | One time, at registration |
| Electric vehicles | 99% exempt | Balance under the normal rule |
The structure replaced the older flat slabs for cars above 1000cc, and the rate rose for 2026-27 against the year before. The 1001cc to 2000cc band moved from 0.2 percent to 0.3 percent of invoice price, and the band above 2000cc moved from 0.3 percent to 0.4 percent. An owner who pays the same amount as last year without a fresh check will underpay the current year.
Why the amount is a percentage of invoice price
A percentage rule ties the tax to the value of the vehicle rather than to engine size alone. Two cars with the same engine capacity pay different token tax under the rule, because the expensive model carries the higher invoice price. The invoice price is the price recorded at first sale of the vehicle, and the Excise record carries that figure from the registration file. The owner does not calculate the tax from the current market value of the vehicle, and a fall in the resale value of the vehicle does not reduce the token tax.
The percentage rule also explains a limit on every published table, including the table in this guide. A table can state the rate for each band, and the table cannot state the final rupee amount for a mid-range car, because the amount depends on the invoice price of that specific vehicle. The exact amount for a specific vehicle appears on the ePay Punjab challan for that registration number. Readers should treat any website that prints a fixed rupee slab for the 1001cc to 2000cc band as unreliable, because no such fixed slab exists under the current structure.
Worked examples in rupees
The examples below apply the 2026-27 rates to round invoice prices, so a reader can test the arithmetic before a payment.
- A car of 1800cc with an invoice price of Rs 4,000,000 pays 0.3 percent of Rs 4,000,000, which equals Rs 12,000 for the year.
- A car of 1300cc with an invoice price of Rs 5,500,000 pays 0.3 percent of Rs 5,500,000, which equals Rs 16,500 for the year.
- A car of 2400cc with an invoice price of Rs 9,000,000 pays 0.4 percent of Rs 9,000,000, which equals Rs 36,000 for the year.
- A car of 800cc pays the flat lifetime amount of Rs 20,000 once, and the owner pays no annual token tax after that payment.
The challan for a real vehicle adds the other components of the dues position, such as arrears from earlier years and any income tax collected with the token tax. The examples isolate the token tax component alone, and how to check token tax online in Punjab shows the full breakdown for a specific registration number.
Token tax for motorcycles
Motorcycles sit outside the annual system. A motorcycle pays a lifetime token tax of Rs 1,500 at registration, and the owner pays no annual token tax after that single payment. The same lifetime figure returns at a transfer that takes place within ten years of registration, reduced by 10 percent for each year that has passed since registration. A motorcycle owner who receives an annual token tax demand should check the record before payment, because the demand usually signals a record error or a different head of dues.
Token tax for commercial vehicles
Commercial vehicles, including trucks, buses, rickshaws, and tractors in commercial use, pay token tax every year under a separate assessment that the department bases on the class and the laden capacity of the vehicle. The commercial structure does not follow the invoice price percentage that applies to private cars, and commercial rates changed for 2026-27 as well. An operator should read the exact amount for the vehicle from the ePay Punjab challan for the registration number, because the challan applies the current commercial schedule to that vehicle and shows any arrears in the same document. A payment against an old schedule risks a shortfall that surfaces later as outstanding dues on the record.
Electric vehicles and the 99 percent exemption
The official schedule gives electric vehicles a 99 percent exemption from motor vehicle tax, and the same policy exempts 95 percent of the registration fee at first registration. An electric car pays only a small balance of the token tax that the percentage rule would otherwise produce. The exemption applies to the tax component; a challan can still carry other dues heads for the vehicle, and the owner should read the challan lines separately instead of treating the full document as token tax.
The 10 percent rebate and the 31 August date
The schedule allows a 10 percent rebate on the token tax for a full year when the owner pays the complete year amount on or before 31 August of the financial year. The rebate rewards one full payment; a part payment or a late payment earns no rebate. One honest point belongs in every 2026-27 guide: the 31 August 2026 date for the current financial year has already passed, so a payment made now carries the full amount. The rebate returns with the next financial year, and an owner who pays in July or August of that year will save the 10 percent again.
How to check the exact amount and pay
The exact token tax for a vehicle appears online before any payment. How to check token tax online in Punjab gives the record check, and the payment then runs through ePay Punjab: the service generates a challan with a 17-digit Payment Slip ID (PSID), and the owner pays that PSID through a bank application, an ATM, or a mobile wallet. How to pay token tax online with ePay Punjab covers the payment sequence and the confirmation check after payment. An owner should keep the payment receipt until the portal record shows the new paid-up-to date.
Frequently asked questions
How much token tax does a car up to 1000cc pay in Punjab in 2026-27?
A car up to 1000cc pays Rs 20,000 once, as a lifetime token tax. The owner pays no annual token tax for the vehicle after that payment, and the lifetime amount returns at a transfer within ten years, reduced by 10 percent for each elapsed year.
How much token tax does a 1500cc car pay in 2026-27?
A 1500cc car pays 0.3 percent of the invoice price of the car for the year. A 1500cc car invoiced at Rs 5,000,000 pays Rs 15,000. The exact amount for a specific car appears on the ePay Punjab challan for the registration number.
Is the token tax for motorcycles annual?
No. A motorcycle pays a lifetime token tax of Rs 1,500 at registration, and no annual token tax applies after that payment. The lifetime figure appears again only at a transfer within ten years of registration, with a 10 percent reduction for each elapsed year.
Does the 10 percent rebate still apply for 2026-27?
No. The rebate applies to a full year payment made on or before 31 August of the financial year, and the 31 August 2026 date has passed. A payment for 2026-27 made after that date carries the full amount, and the rebate opens again with the next financial year.
Where does the exact token tax amount for a specific vehicle appear?
The exact amount appears on the ePay Punjab challan for the registration number of the vehicle. The challan applies the correct band and the invoice price on the Excise record, and the challan also shows arrears and other dues heads for the same vehicle.