Tax revenue to GDP ratio is very low in Ethiopia as compared to some of Sub-Saharan Africanrncountries. In this study an attempt is made to analyze empirically factors influence tax revenuernsuch as broad money supply, exchange rate, urbanization, import, foreign remittances, andrnmining share in GDP so as to assess the response of tax revenue to changes in its factors inrnEthiopia. The study is essential because its results can be used to help policymaker takernappropriate measure when raising tax revenue and also used in making appropriate tax reformrnin an event of budget deficit. The study mainly used secondary data collected over the periodrn1997-2015 from Ministry of Finance and Economic Cooperation (MoFEC), Central StatisticalrnAgency (CSA), and National Bank of Ethiopia (NBE). For the present study, both descriptivernstatistics and econometric tools were employed to analyze and present the obtained data. Thernresults obtained suggest that broad money supply, and exchange rate are positively significant inrninfluencing tax effort in Ethiopia. But the results indicate that import in GDP is statisticallyrninsignificant factor to influence tax effort in Ethiopia. Finally, it is found that Ethiopiaâ€™s taxrnrevenue is very responsive to change in its factors which create more challenge to therngovernment in creating a stable tax systemrnKey words:s factors; tax revenue; time serie