The article explores the best tax policies for a model of vintage capital with new plant entry and exit. It looks at how taxes on capital income, labor income, and property affect plant productivity and government revenue. The study finds that a lower property tax rate is needed for the same government spending level compared to a capital income tax. The property tax rate influences plant exit thresholds and productivity distribution. The optimal capital income tax rate changes with different government spending levels when the property tax rate is zero. The study also considers subsidies on capital income and property. The research shows how tax policies impact plant entry and exit rates, social welfare, and economic stability during technological or government expenditure shocks.