This study examines and analyses rural land taxation in Libo Kemkem Woreda. The objective of the thesis is to Assess rural land taxation by review, identifies the root problems of taxation systems and puts the possible solution to the related problems in Libo Kemkem Woreda. Two kebeles, namely Yifag Akababi and Asta Mariam areas were selected randomly. The data used for the study were collected from a total of 118 farm households and stratified random sampling was applied to select. Primary data were collected using a structured questionnaire and secondary data were obtained from relevant sources. All of the 118 respondents (100%) responseds ,that all land parcels are registered and have first level certificate. About 100% of house hold have paid their tax due to the involvement of the government in the issues of taxation system. About 89% of respondents said tax collected by kebele committee. The taxpayers pay tax the assessed amount to the tax collection office and obtain a tax receipt. According to results obtained from interviews with the tax authority, the assessments and calculation of rural land tax is depending upon the size of the parcel it is not consider the fertility of the land. An interview with taxpayers indicate that, the main reason for the hesitating the payment is that at the time of tax collected unavailability of cash money, that means the sources of income of the house holds were from agricultural production. About 51% (n=60) of the respondents responded that the tax rate is low. In the case of Libo kemkem woreda, parcel size and suitability of land for agricultural production are one of the requirements for the assessments of land tax so the amount of collected rural land taxes is very low. Generally, land registration system improves tax revenue due to correct land information.