Just noticeable distortion (JND), reflecting the perceptual redundancy directly, has been widely used in image and video compression. However, the human visual system (HVS) is extremely complex and the visual signal processing has not been fully understood, which result in existing JND models are not accurate enough and the bitrate saving of JND-based perceptual compression schemes is limited. This paper presents a novel pixel-based JND model for videos and a JND-based perceptual quantization scheme for HEVC codecs. In particular, positive and negative perception effects of the inter-frame difference and the motion information are analyzed and measured with an information-theoretic approach. Then, a surprise-based JND model is developed for perceptual video coding (PVC). In our PVC scheme, the frame-level perceptual quantization parameter (QP) is derived on the premise that the coding distortion is infinitely close to the estimated JND threshold. On the basis of the frame-level perceptual QP, we determine the perceptual QP for each coding unit through a perceptual adjustment function to achieve better perceptual quality. Experimental results indicate that the proposed JND model outperforms existing models significantly, the proposed perceptual quantization scheme improves video compression efficiency with better perceptual quality and lower coding complexity.