Posted by WilltheGamer on the official Taleworlds forum.
In life there are only two things you can be certain of, you will die, and you will pay taxes.
Taxation is another addition to the monarchs rule that will change certain aspects of gameplay, but only for monarchs or rogue lords. While each fief under a kings control grants them rents, they can also claim taxes from all lords who own lands for various different things.
Taxation Levels
Very High - 50% Tax - Popularity Decreases daily. Only suggested use if funds are needed and you already have a very high popularity so you have some to spare.
High - 35% Tax - Popularity Decreases weekly. If you can manage to keep your popularity up in court, then you can balance having high taxes.
Medium - 15% Tax - Popularity will not increase or decrease on a regular basis.
Low - 5% Tax - Popularity increases weekly, but remember as a monarch you need a lot of money to solve various issues that can't be solved with brute force.
No Taxes - Popularity increases Daily, but you will receive no income from allied fiefs or tax income from fiefs under your command.
Merchant Tax
I believe this is more commonly known as a tariff, is a tax that happens anytime a merchant caravan enters one of your cities trying to sell goods. If say the caravan brings in 10,000 gold, the tax with take a percentage of that and add it to the treasury. Taxes also effect players who wish to play the merchant playstyle as it will greatly effect their profits in those areas. A high Merchant Tax will cause less merchants to bring goods into your cities, and less goods means less collecting which means less money.
Food Tax
This would more commonly be referred to as a peasant tax. This tax is calculated by the number of peasants in your kingdom, but since peasants don't have much gold it gives you the least amount. However, lowering or raising this tax will give you the biggest popularity gains or losses amongst the masses.
Land Tax
Or more commonly referred to as the Lords Tax. This tax only applies to lords within your kingdom who have fiefs which collect rents. The land tax takes a percentage of rents from all allied lords rents and deposits it in the treasury every week. Raising or lowering this will have an effect on your allied lords respect of you.
All these taxes are to help the player bring in some money for all the new things he is going to have to spend it on in order to keep his kingdom stable.
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