The purpose of this research was to examine the determinants of tax compliance behavior of taxpayers’: the case of Bahir Dar city. Data was collected from primary source and secondary source. The research is used cross sectional survey method and the researcher have used Yemane (1967) sample size determination and random sampling method was employed to select the the respondents. Descriptive and inferential statistics of correlation and regression analysis were used to analyze the empirical data. Primary data were collected using five Point Likert-Scale questionnaires 204 responses were properly filled and returned. SPSS (v.20) was used to analyze empirical data collected through the close-ended questionnaire. The independent variables are knowledge and awareness of tax, structure of tax system, fairness and equitable perception, quality service of the authority, transparency of tax system and tax penalty whereas the dependent variable is tax compliance behavior. The mean (St. Dev.), minimum and maximum of the dependent and independent variables were computed and interpreted. Pearson correlation Coefficient (r) was used to determine the relationship between each independent variable with the dependent variable. The finding results indicated that the mean value for structure of tax system (mean=3.3), fairness and equitable perception (mean= 2.8), quality service of tax authority (mean= 2.3) were found medium agreed whereas knowledge and awareness of tax (mean=3.5), transparency of tax system (mean= 3.5), tax penalty (3.6) high agreed to encourage the tax compliance behavior. The correlation result indicated that knowledge and awareness of tax, tax penalty there were positive relationship of tax compliance behavior whereas fairness and equitable perception was negatively correlate with tax compliance behavior. This implies that any increase or decrease on the independent variable will bring corresponding change on tax compliance behavior. Multiple linear regression result indicates independent variables has a 21.1% influence on the dependent variable while the remaining 78.9% was unobserved factors in this study. The result revealed as increasing a positive contribution of knowledge and awareness, presence of tax penalty, were positively affect tax compliance behavior whereas unfair and unequitable and poor transparency of tax system were found negatively affect the tax compliance behavior. Finally, the outcomes of the study may inform policymakers about the determinants of tax compliance behavior of tax payers and helps to formulate better policy decisions related to tax compliance behavior.