Aiming at identifying the determinants of tax compliance, this study was conducted in East Belessa Woreda. The target population of the study was category C tax payers of East Belessa Woreda which were 874 in number. Quantitative research approach through cross-sectional data was conducted. A sample of 267 category C tax payer was taken using stratified sampling followed by random sampling from each stratum. The study used both descriptive analysis and econometric model. The descriptive statistics results indicated that the majority of both the compliant and non complaint respondents responded that the main reason why tax payers did not pay their tax on time and the actual amount was problem of fairness of tax system, lack of awareness and no trust in government spending. Binary Logistic regression model identified the factors that affect tax compliance were sex of tax payers; first degree and above tax payers, level of income, trust in government spending, tax knowledge and fairness of tax system have significant effect on tax compliance. Whereas age, religious, tax rate, penalty, complexity of tax system and trust in the public official were not significant effect on tax compliance. The finding of the results revealed that being male was negatively associated with tax compliance. Similarly, high level of education was negatively related with tax compliance. Moreover, the negative perception of fairness was negatively associated with tax compliance. On the other hand, the level of income was positively associated with tax compliance. Similarly, the tax knowledge was positively associated with tax compliance and the Perception on government spending of tax payers was positively related with tax compliance.