The development of any nation depends on the ability of the government to generate sufficientrnamount of revenue from its own internal source of finance. Tax is the most efficient andrneffective tools of fiscal policy in the world through which a government is able to supply arnvariety of social and welfare services. Many developing countries face fiscal deficit due to lowrntax collection performance. Similarly, Ethiopian tax collection performance is low asrncompared to other sub-Saharan African countries and the trend of these taxes not consistent.rnThe main objective of the study was to identify determinants of tax revenue performance inrnEthiopia using time series data covering period from1980-2015. The variables used in the studyrnwere inflation rate, exchange rate, unemployment rate, foreign direct investment, urbanizationrnrate as explanatory variables to explain the explained variable of tax revenue performance.rnMultiple regression model and Vector error correction model (VECM) have been employed tornanalyze the long run and short run relationship for the analysis and test the hypotheses developedrnusing ordinary least square. The stability of the data is checked and all the data are stationary byrndifferencing, beside all the CLRM assumptions were tested and none of the assumptionsrnviolated in the study. Accordingly, the result of the regression model revealed that urbanizationrnrate, inflation rate and foreign direct investment have significant positive relationship with taxrnrevenue performance, whereas unemployment rate has significant negative relationship with taxrnrevenue performance in the long run. But exchange rate has negative insignificant effect in thernlong run .Unlike the long run; only exchange rate has a significant positive effect on tax revenuernperformance in the short. Finally, the study forwarded recommendation that enhance tax revenuernperformance to incorporating all responsible organs under the tax system, improving labor marketrnto bring unemployment back down ,deepening currently followed market economy and expandrnformal settlement and exhaustively working to track foreign investment.rnKey words: Tax revenue performance, Unemployment rate, Inflation rate, Urbanization rate,rnExchange rate and Foreign direct investment