Taxation is one of the three primary sources of monthly income alongside production and trade. Each province has a base tax (and eventually an additional tax income) and a tax income efficiency. Taxation is increased by national tax income besides tax income from provinces so that:
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Monthly tax income from provinces is:
The tax income efficiency includes local modifiers such as buildings and wrong-culture penalties and also national tax modifiers like treasurer advisor. The Local Autonomy is applied multiplicatively, so if a province has 100% Local Autonomy, the province tax amount will be of 0%.
Base tax is one of the three components of development in a province, and is an abstract representation of the size and wealth of the population. Players may increase base tax by spending administrative monarch points. Some events and decisions also affect base tax.
Moreover, each point of base tax give the following bonus:
The local tax income (‘yearly tax income’) is a flat amount added to the base tax. The Longhouse native building (+1 yearly tax income) is the only source of local tax income besides some modifiers of events.
Tax income efficiency is how efficient the government is at extracting taxes from a province. The percentages are additive so, for example, if a province in an Oligarchic republic (+5%) is a core city (+25% and +75%) but it is blockaded (−75%), the total tax efficiency will be 30%.
National tax income (‘yearly tax income’) is a special tax income that is not tied to individual provinces. It is added last to your tax income after tax efficiency is applied, so it isn't affected even by national modifiers.