Tax evasion in Bahir Dar Town affects government revenue and resource allocation. A survey found that some people think tax evasion is ethical. Women are not necessarily more against tax evasion than men. Tax evasion is higher when the government is corrupt. Reasons for tax evasion include lenient government, corruption, unfair treatment, tax affordability, and unfavorable tax system. Government accountability, transparency, public awareness, human rights, and optimal tax rates can reduce tax evasion.