Laxmikantham, P. (PhD)Mengistu, Tewodros2018-07-022023-11-082018-07-022023-11-082016-06http://etd.aau.edu.et/handle/123456789/5516The paper examines the tax compliance costs of employment income taxpayers in Addis Ababa. one research question and one hypothesis were investigated in this study: (RQ1) how much compliance costs of the individual income tax system borne directly by the taxpayers themselves, including both the time spent and pecuniary expenditures? (And (H1) the compliance costs of individual income tax are relatively low in terms of their costs per individual: especially costs of time and monetary costs. The survey was conducted to a total of 250 individual income tax payers and questionnaires were distributed to those individual taxpayers in the administrative city of Addis Ababa in Ethiopia. A total of 200responses were received and used for the final data analysis. The findings from the survey provide pertinent and useful insights about the compliance costs of Addis Ababa individual taxpayers. The average values per tax payers were 157.78 ETB and the average times spent by tax payers for filing their tax return were 7.54hrs. In all, the study found that the compliance costs of individual taxpayers in Addis Ababa were relatively low in term of the total monetary value. Keywords: compliance cost, income tax, Addis Ababaen-USCompliance costIncome taxAddis AbabaThesis