Introduction

Buying a new car in Pakistan is exciting. Then the dealer hands you the invoice, and a second question appears: how much will it cost to put the car on the road legally? In Islamabad, that answer is rarely a single number.

The Excise and Taxation Department does not charge one flat "registration fee". Its own guidance explains that the bill is built from several parts: the registration fee, advance tax, token tax and income tax, plus professional tax for commercial vehicles. A smart card fee and a number plate fee are added at the counter. Many buyers budget only for the registration fee and are surprised when the advance tax turns out to be larger.

2026 makes the picture more important to understand. From 1 July 2026, token tax for most private cars above 1,000cc is linked to invoice value rather than fixed slabs. That means the model and trim you choose can change your yearly cost, not just your purchase price. Your filer status matters even more. Advance tax for non-filers is three times the filer rate in every engine band, so the same car can cost tens or even hundreds of thousands of rupees more to register, depending on who buys it.

This guide is written for anyone registering a new car in the Islamabad Capital Territory (ICT). It explains each charge in plain English, shows the engine-capacity bands, walks through the documents and the step-by-step process, and includes worked examples so you can estimate your own bill before you visit the H-9 office. Every rate comes from an official or authoritative source, and we flag clearly where reports differ or where you should confirm a figure on the official calculator.

If you want more background first, these ICT guides will help:

• Islamabad vehicle tax rates 2026 for a detailed look at token tax
• Excise and Taxation Islamabad: step-by-step guide for the wider range of Excise services
• How to check your filer status, because it affects your bill more than any other single factor
• Pakistan Budget 2026 tax changes explained for the national context

At the Institute of Corporate and Taxation (ICT), we teach the tax rules behind these charges every day, so this guide focuses on the numbers and on how to avoid expensive mistakes.

Quick answer

Registering a new car in Islamabad is not one fee. The Excise and Taxation Department estimates the bill as registration fee plus advance tax, token tax and income tax, with professional tax added for commercial vehicles. A smart card fee and number plate fee are added on top.

For a private car, the department's schedule sets the registration fee at 1% of vehicle value up to 999cc, 2% from 1,000cc to 1,999cc and 4% from 2,000cc. The biggest swing factor is usually your filer status, because advance tax for non-filers is three times the filer rate.

This guide applies to vehicles registered with the Islamabad Capital Territory (ICT) Excise office. It reflects information checked on 3 October 2026. Rates change, so confirm your exact figure on the official calculator before paying.

What is a new car registration fee in Islamabad?

First registration links a new vehicle to its owner on the government record and issues a registration number. In ICT, the Excise and Taxation Department handles it, acting as the Motor Registration Authority.

The "registration fee" is only one line of the bill. Most buyers are surprised because the larger amounts are federal income tax collected by Excise on behalf of the FBR, not Excise's own fee.

Registration fee, token tax and advance tax: what is the difference?

Buyers often mix these three up, so here is the short version.

• Registration fee: a one-time charge for putting the car on the Excise record for the first time. It is a percentage of the vehicle's value, set by engine capacity.
• Token tax: the annual motor vehicle tax that keeps your Islamabad registration valid. It is charged under the West Pakistan Motor Vehicles Taxation Act, 1958, as it applies in ICT. In the year of registration you pay it only for the remaining months.
• Advance tax (section 231B): federal income tax that Excise collects for the FBR at registration. It is separate from token tax and is much higher for non-filers.

What is invoice value?

Invoice value is the vehicle's original purchase value on record, not its current resale price. Since 1 July 2026, token tax for cars above 1,000cc is calculated as a percentage of this figure. For advance tax on a locally made car, the FBR rate card says the value is the invoice value including all duties and taxes.

Our Islamabad vehicle tax rates 2026 guide explains the token tax change in more detail.

What you pay: the full cost structure

The rates of income tax and token tax apply for the whole year from 1 July to 30 June, but a new registrant pays for the remaining months only, based on the registration date.

Registration fee by engine capacity

Source: the schedule on the ICT Administration vehicle registration page. Electric vehicles are listed as exempt from the registration fee in the department's schedule (see the EV section below).

Which "value"? The fee runs on the vehicle's value on record. For a locally made car, that is the sale invoice. Always read the official calculator's assumptions.

Advance tax at registration (section 231B)

This is usually the largest single item. The FBR rate card, updated to 30 June 2025, lists section 231B advance tax as a percentage of value by engine band, with non-filer rates three times the filer rate.

Three points matter here:

• Value for tax purposes: for a locally made car it is the invoice value including all duties and taxes; for an imported car it is the customs-assessed value plus customs duty, federal excise duty and sales tax; for an auctioned car it is the auction value.
• Vehicles with no engine capacity (such as EVs): where engine capacity does not apply and the value is Rs 5 million or more, the rate is 3% of value.
• Has 2026 changed this? Secondary reports on the Finance Act 2026 say the registration rate table was not changed. Check FBR's latest rate card before you budget.

Not sure whether you are on the list? Use our ATL filer status guide and read filer vs non-filer in Pakistan to see why the gap is so large.

Token tax in 2026-27

From 1 July 2026, token tax for most private cars in ICT moved from fixed slabs to invoice value. The Finance Bill 2026-27 set Rs 20,000 for cars up to 1,000cc, 0.25% of invoice value from 1,001cc to 2,000cc, and 0.35% of invoice value above 2,000cc.

Fact versus interpretation: That report covers the Finance Bill as presented in June 2026. Secondary sources say it took effect from 1 July 2026, and the ICT guide on our site describes it that way. Reports also differ on whether the Rs 20,000 for cars up to 1,000cc is a lifetime or an annual payment, so confirm this on the official calculator.

Income tax collected with token tax (section 234)

On top of token tax, Excise collects income tax under section 234 of the Income Tax Ordinance, 2001. It depends on engine capacity and on whether you are on the Active Taxpayer List. For reference, the FBR rate card (updated to 30 June 2025) lists these annual amounts for private motor vehicles:

The card also lists separate lump-sum amounts for vehicles where motor vehicle tax is collected in one payment. Because this card is dated June 2025, check the latest FBR card and the Excise calculator for the current tax year. These amounts are not included in our worked examples. For the bigger picture, read our guide to withholding tax.

For deeper detail, see our Islamabad vehicle tax rates 2026 guide and the national vehicle token tax guide.

Worked examples (our arithmetic from the published rates)

These are illustrations, not quotes. Your actual bill depends on your invoice, registration date and the official calculator.

Example 1: 1,300cc car, invoice value Rs 5,000,000

CVT does not apply because the car is not above 1,300cc. Number plate fee and section 234 income tax are excluded. Being a filer saves Rs 150,000 on this one purchase.

Example 2: 1,500cc car, invoice value Rs 7,000,000 (illustrative)

The CVT line follows the department schedule, which applies it to engine-based cars above 1,300cc for the first five financial years. Confirm it on the calculator for your case.

Quick estimate by engine size

To compare engine bands fairly, the table below uses the same hypothetical invoice value of Rs 5,000,000 for every car. Real cars at different cc levels have very different prices, so use this table to see how the bands behave, not to price a specific model.

How to read it:

• All totals include the Rs 2,400 smart card fee. They exclude the number plate fee and section 234 income tax.
• Token tax is shown as a full year. In practice it is pro rata for the months left until 30 June.
• CVT (1% of value) is shown for cars above 1,300cc, following the department's schedule. Confirm it on the official calculator.
• *The department's table starts the 2% band at 1,000cc and the 4% band at 2,000cc, while the advance tax bands end at 1,000cc and 2,000cc. A car at exactly these sizes sits on the boundary, so check the calculator for your exact engine size.
• The token tax for 1,000cc follows the Rs 20,000 band. Reports differ on whether it is annual or lifetime, so confirm it.

This is our own arithmetic from the published rates. Use the official Islamabad Excise calculator for your actual figure, and check your status first with our ATL filer status guide.

Documents required

The ICT Administration lists these documents for new registration:

• Photocopy of your CNIC
• Application to the Excise and Taxation Officer for registration of a new vehicle
• Proof of purchase:
  • Locally manufactured car: sale invoice, sale certificate and related documents
  • Imported car: Bill of Entry, Bill of Lading, old registration book and related documents
  • Auctioned car: auction voucher and related documents
• Proof of Islamabad residence: a utility bill, CNIC, lease agreement, registry, allotment letter, or an office card or appointment letter for government servants

You will also need biometric verification of the person named on the invoice. Our Excise and Taxation Islamabad guide explains the Pak ID app and NADRA e-Sahulat options.

How to register a new car in Islamabad: step by step

The department's process is as follows:

1. Complete your documents.
2. Take the car and documents to the designated Excise Inspector for physical inspection and verification.
3. Go to the Data Entry Operator (DEO), who checks the file.
4. Sign the computerised Form 'F' to confirm your particulars.
5. Pay the fee at the same window.
6. Collect the registration receipt.
7. Pay the number plate fee in cash to the DEO.

Where and when: The office is next to the HEC Building on Service Road, Sector H-9, open Monday to Friday, 8:00 AM to 1:30 PM. The listed processing time is 90 days. For contacts and directions, see our Islamabad Excise office guide.

Online or at home: ICT Administration offers a mobile registration service through the City Islamabad app and a helpline. You still need document checks and inspection.

The 60-day deadline

A late fee applies when registration is delayed beyond 60 days from the invoice date. The fine amounts are on the department's schedule, so check them before you delay. Ask your dealer for the invoice date and plan registration straight away.

Number plates and M-Tags: what new buyers should know

Owner-based plates. Since July 2025, Islamabad registration numbers are issued to the owner rather than the vehicle. A new car registered in your name therefore gets a number linked to your CNIC. If you later sell the car, the buyer receives a new number, and you can keep your old one for a future vehicle for up to one year before it is cancelled. See the Excise and Taxation Islamabad guide for the full transfer details.

M-Tag. An M-Tag is a prepaid RFID sticker read at toll plazas and checkpoints. It has been compulsory for cars entering Islamabad since 1 January 2026, and for motorcycles since 20 February 2026. The same guide reports an issuance fee of Rs 250 per vehicle, citing Dawn. Bring your original CNIC and the registration documents to an issuance point, and confirm the current fee on the official Excise website.

Number plate fee. The department does not publish a single plate fee on the registration page. The fee is paid in cash to the Data Entry Operator, so ask at the information counter and keep the receipt.

After registration: paying token tax online

Your first year's token tax is collected in the registration bill. From the next tax year, the tax year runs from 1 July to 30 June. ICT Administration offers token tax payment through the official City Islamabad app. The usual steps are:

1. Install the City Islamabad app and register an account.
2. Select the token tax service and enter your vehicle registration number.
3. Check the amount the app calculates.
4. Generate the PSID (Payment Slip ID).
5. Pay the PSID through internet banking, a mobile banking app or another channel that accepts PSID payments.
6. Save the receipt.

Use only the official app and website for amounts, because copycat sites often show outdated figures. For a screen-by-screen walkthrough, see our guide to verifying vehicle registration and paying token tax online in Islamabad.

Imported and auctioned cars

The procedure is the same, but proof of purchase differs (see documents above). The tax value also differs: for imports, advance tax runs on the customs-assessed value plus duties and taxes, so a higher import value means a higher section 231B charge. Keep every customs paper together.

Electric vehicles

The Islamabad fee schedule notes that electric vehicles are exempt from the registration fee. The schedule also applies CVT of 1% to EVs above 50 kWh. Income tax still applies, and secondary sources say token tax is exempt too. Because rules for new energy vehicles are evolving, confirm each item at the Excise counter before you register.

Commercial vehicles and motorcycles

Commercial vehicles. The registration process is the same, with three differences:

• Registration fee: the schedule lists 1% up to 999cc and 2% from 1,000cc upward.
• Professional tax: the department's formula adds professional tax for commercial vehicles.
• Motor cabs: the Finance Bill 2026-27 listed separate rates for motor cabs, such as Rs 600 up to 1,000cc and Rs 1,000 from 1,001cc to 1,300cc. Check the official calculator for higher bands.

Businesses running several vehicles should also read our complete guide to excise and taxation in Pakistan.

Motorcycles. The steps are the same: documents, biometric verification, inspection, Form 'F' and payment. Token tax is a one-time lifetime payment according to the department's schedule:

Motorcycles also need an M-Tag (see above). Our vehicle verification guide works for bikes too.

Is it cheaper in Punjab or Sindh?

Do not compare headline numbers. A car is registered by the province where you live and handled by that province's Excise department. Punjab's official page, for example, lists 1% for cars not exceeding 1,000cc and 2% above that up to 2,000cc, but token tax, smart card fees and other charges differ. Read the Punjab Excise guide or the Sindh guide for your own department.

Common mistakes

1. Budgeting only the registration fee. Advance tax is often larger.
2. Ignoring filer status before purchase. Becoming a filer afterwards does not undo the registration bill. See how to become a filer in Pakistan.
3. Missing the 60-day window.
4. Using unofficial calculators or agents. Quoted fees are often outdated.
5. Not keeping receipts. Advance tax is a federal income tax collection. Filers should discuss with a tax adviser how to reflect it in their annual return.

Expert tips

• Run the official calculator with your invoice value, engine capacity and filer status before you book the car.
• Compare variants. A higher trim raises the invoice value, which raises registration fee, advance tax, token tax and CVT.
• Check your ATL status before paying the dealer, not after.
• Keep your invoice, receipts and payment slips in one folder.

Learn the tax rules behind the bill

Most of what you pay at the Excise counter is governed by income tax law, from section 231B to filer and non-filer treatment. If you want to calculate these charges for clients or your own business, the Institute of Corporate and Taxation (ICT) teaches them as practical skills. Our Certified Tax Advisor course covers income tax, withholding tax and FBR compliance. Contact ICT to find out about the next batch.

Why Choose ICT to Master Vehicle Taxes and FBR Compliance?

Most of what you pay at the Excise counter is tax law, not paperwork. Section 231B advance tax, section 234 income tax, filer and non-filer rates and invoice-based token tax all come from the Income Tax Ordinance, 2001 and the rules built around it. If you advise clients, run a business or simply want to understand your own bills, learning these rules properly is worth the effort.

The Institute of Corporate and Taxation (ICT) is an education provider offering taxation and corporate training, with campuses in Islamabad, Lahore and Karachi. Here is what that means for someone who wants to work with vehicle and withholding taxes.

Training that covers the taxes behind the bill

ICT's Certified Tax Advisor course covers income tax, withholding tax, sales tax and practical FBR compliance, including IRIS return filing. That matters for vehicle registration because:

• advance tax at registration is a withholding-style collection that appears in a taxpayer's annual return
• filer status changes the rate you pay, so understanding the Active Taxpayer List is essential
• accurate records, receipts and returns decide whether you can use these collections properly

To explore the topic at your own pace first, read our guides on withholding tax, filer vs non-filer rules and how to become a filer in Pakistan.

A choice of courses for different goals

Not everyone needs the same programme. ICT's course catalogue includes options such as:

• Certified Tax Advisor for income tax, withholding tax and FBR work
• Master Sales Tax for businesses and accountants who deal with sales tax
• Advance Taxation and Litigation for professionals who handle notices and disputes
• Certified Business Advisor for those who advise businesses more broadly

Compare each course page for current content, duration and fees before you decide. If you are unsure where to start, our article on the best taxation course in Islamabad explains how to choose.

Learn from mentors, and verify what you earn

You can read about ICT's teaching team on the Our Mentors page and judge their backgrounds for yourself. ICT also offers an online certificate verification page, which lets employers and clients confirm a certificate.

Practical, updated learning

Tax rules change every year. This article alone covers a 2026 shift in token tax from fixed slabs to invoice value, and ICT's blog follows changes like these as they happen. See, for example, our summary of Pakistan Budget 2026 tax changes. Courses and blog guides work together, so what you learn stays tied to the rules in force.

Who benefits most?

• Accountants and bookkeepers who handle vehicle purchases for clients or employers
• Business owners buying company vehicles who need to see the real tax cost
• Students and career changers building a practical tax career, see how to become a tax consultant in Pakistan
• Freelancers who want to start filing correctly, with our freelancer tax guide

Ready to take the next step?

Whether you want to estimate your own car registration bill with confidence or build a career in taxation, ICT can help you choose the right path. Visit the ICT website to browse programmes, or contact the ICT team to ask about upcoming batches, fees and schedules. You can find the Islamabad campus at Plot No 63, Service Road North, I-10/3, Islamabad.

Frequently asked questions

What are the new car registration fees in Islamabad in 2026?
Registration fee is 1% of value up to 999cc, 2% for 1,000cc to 1,999cc and 4% from 2,000cc for private cars. Advance tax, token tax, income tax, smart card and number plate fees are added.

How is the Islamabad registration cost calculated?
It is the registration fee plus advance tax, token tax and income tax, with professional tax for commercial vehicles.

Does engine capacity affect the fee?
Yes. It sets the registration fee percentage, the advance tax rate and the token tax band.

Does invoice value matter?
Yes. The registration fee and advance tax run on value, and token tax for cars above 1,000cc runs on invoice value.

What documents are needed?
CNIC copy, application to the Excise and Taxation Officer, proof of purchase, proof of Islamabad residence and biometric verification.

Can I register online?
Partly. The City Islamabad app offers a mobile registration service, but inspection and document verification are still needed.

How long does it take?
The official listed processing time is 90 days.

Is there a deadline?
Yes. Register within 60 days of the invoice date to avoid the late fee.

Do filers pay less?
Yes. Non-filer advance tax is three times the filer rate in every engine band.

Do electric cars pay the registration fee?
The department's schedule lists EVs as exempt from it. Income tax still applies, so confirm at the counter.

What is the difference between registration fee and token tax?
Registration fee is a one-time charge at first registration. Token tax is the annual motor vehicle tax that keeps the registration valid.

What is invoice value for vehicle registration?
It is the vehicle's original purchase value on record, not its resale price. It drives token tax for cars above 1,000cc and the value used for advance tax on a locally made car.

How much is the registration fee for a 1,300cc car in Islamabad?
The department's schedule lists 2% of value for private cars from 1,000cc to 1,999cc. On an invoice of Rs 5,000,000, that is Rs 100,000, before the other taxes.

Do I get a new number plate with a new car?
Yes. Islamabad uses owner-based numbers, so your number is linked to your identity.

Is an M-Tag compulsory in Islamabad?
Yes. It has been compulsory for cars since 1 January 2026 and for motorcycles since 20 February 2026.

How do I pay token tax online in Islamabad?
Use the City Islamabad app, enter your registration number, generate the PSID and pay it through a linked banking channel.

Do motorcycles pay token tax every year?
No. According to the department's schedule, motorcycles pay a one-time lifetime token tax of Rs 1,000, Rs 2,000 or Rs 5,000, depending on engine size.

Conclusion

Registering a new car in Islamabad becomes much easier once you stop thinking of it as one fee and start treating it as a small tax bill with clear parts. The registration fee depends on engine capacity. Advance tax depends on engine capacity and your filer status. Token tax depends on the vehicle's invoice value or engine band. The smart card and number plate fees are the smaller items on top.

The practical steps are straightforward:

1. Check your Active Taxpayer List status before you pay the dealer. Read how the ATL works and, if needed, how to become a filer in Pakistan. The filer vs non-filer guide shows why this single step can save so much.
2. Run the official Excise calculator with your invoice value, engine capacity and filer status.
3. Gather your documents: CNIC copy, application, proof of purchase, proof of Islamabad residence and biometric verification.
4. Register within 60 days of the invoice date. Delay brings a late fee, and the process can take up to 90 days, so start early. Check the Excise office timings and address before you go.
5. Keep every receipt. Advance tax is a federal income tax collection, so ask your tax adviser how to reflect it in your annual return.

After registration, your next obligations begin. Pay token tax on time (see our vehicle token tax guide), verify your record online using our vehicle verification guide, and learn about the digital vehicle card. If your car is registered outside ICT, the rules differ, so see our Punjab and Sindh guides, or the complete guide to excise and taxation in Pakistan.

Rates and procedures change, so always confirm your final figure with the Islamabad Excise and Taxation Department and the latest FBR rate card before paying.

If you work with clients on vehicle purchases, or want to understand withholding and advance taxes properly, ICT can help. Our Certified Tax Advisor course covers income tax, withholding tax and practical FBR compliance, and you can explore all ICT courses or contact the ICT team to ask about the next batch.