Abstract:
Tax plays a key role in economic development of countries across the globe. Revenue collected
from tax are pivotal in financing governments' development and current expenditures The study
analyzes the influence of tax literacy on the tax compliance behavior among individual
Taxpayers in Tanzania. Specifically had the following specific objectives; to examine the
influence of general tax knowledge on tax compliance behavior among individual Taxpayers, to
determine the role of procedural tax knowledge on tax compliance behavior among individual
taxpayers and to explore the influence of legal tax knowledge on tax compliance behavior
among individual Taxpayers The study was conducted in Arusha City, cross-sectional research
design was applied in data collection from respondents. 150 respondents were involved in the
study who were registered taxpayers. Also, multiple linear regression and descriptive analysis
was used to analyse the data. The findings revealed that procedural and legal tax knowledge
had significant influence on tax compliance behaviour while general tax knowledge has
contribution but not significant. The study recommended the following: the government and tax
authority should improve and emphasising provision of training service and taxation education
to taxpayers on the usage of systems in taxation such as e-payment system and there should
be an application of simple and up to date technology to improve tax compliance to all taxpayers
