Taxes make up one portion of how the economy in EU3 functions. Taxes contribute both to the monthly income and annual income economic systems. Taxes have the following main components:
- Taxation paid monthly
- Harbor Fees (a.k.a. Trade Tariffs before IN) paid monthly
- Tolls (a.k.a. Trade Tax before IN) paid monthly
- Census Taxes paid yearly
Taxation and Census Taxes
The two related income types of Taxation and Census taxes are determined by the provinces a nation owns. Taxation is paid monthly, along with the other components of Taxes, while Census taxes are paid yearly. Each province has a base tax value. This can be found by clicking on the province to open the province screen and doing a mouse over the tax listing. This not only reveals how much the base tax for the province is but also all the modifiers that are being applied to the tax for this province. Base tax can range from a low of 1 ducat a year to well over 10 ducats year.
This is paid on the first day of every month and appears in the budget window, if you hover the mouse over Taxes. It is named Taxation. It also appears with the same name in the Ledger. It is equal to:
Base Tax + Added Tax Taxation = ---------------------- * (National Modifiers + Province Modifiers) + Looting 12
The various components are presented below:
Added Tax Value
- Center of Trade - adds 10 ducats prior to IN 3.0, 2 ducats + 2 ducats per 100 ducats of trade in IN 3.1
- Workshop - adds 1 ducat
- Capital province - adds 2 ducats
- National Focus effect - adds 0.5 ducats
- Foreign National Focus effect - removes 0.5 ducats
Province Tax Modifiers
- City/Colony Level - adds 100% for cities or 10% x Colony Level for colonies.
- Non-Accepted Culture - if in the same culture-group subtracts 10%, otherwise subtracts 30%.
- Different Religion - subtracts 30%
- No Land Connection to Capital: In EU3 subtracts 30%, NA & IN subtracts 50% only when on a different continent
- Viceroys national idea before IN - adds 30% to overseas provinces. Fully nullifies the No Land Connection penalty for 1.3, and partially nullifies it for NA. For IN, this national idea doesn't affect Taxation, nor Census Taxes, but instead overseas tariffs
- Risk Revolt: subtracts 5% for every 1% of risk revolt. Risk revolt from nationalism or missionaries doesn't count.
- Blockaded province: subtracts 75%
- Looted province: subtracts 50%
- Scorched Earth: subtracts 75%
- Overseas province: subtracts 90%
- Tropical province: removes 50%
National Tax modifiers
- Stability: +30% for stability level 3 to -30% at stability level -3
- Centralisation/Decentralisation domestic policy: +5% (+25% for IN) (fully Centralized) to -5% (-20% for IN) (fully Decentralized)
- Land/Naval domestic policy: -10% (all army) to +10% (all navy) to overseas provinces (No effect for IN)
- Sheriff advisor: +1% per advisor level
- Bureaucracy national idea: +5% bonus
- Some religions add or subtract to this modifier. Please see relevant page for details
- Several events and decisions add or subtract to this modifier. Please see relevant page for details.
Each province of a vassal provides 50% of its Taxation to its overlord. That counts as income to the overlord, but surprisingly enough is not subtracted from the vassal's monthly income. It appears in the budget screen as Vassal Fee, but as can be easily seen, it is not counted in the balance.
Any looting that happens during a month is added to that month's Taxation and as a consequence to monthly income. The amount of income from looting a province is equal to the base tax value of that province. It is only paid the first time the province is looted in a year. It appears on the map, as a yellow, floating number over the province, right after the arrival of the looting army and is visible for few moments.
This looting income is actually shown (not separately, but included in Taxation) in the Budget window. Since the Budget window uses the last month's values to estimate the current month's income, the looting that happens in a month will increase the estimated income of the next month, although of course it won't affect the income of next month. Thus, by design this income is represented on the next month after the month it happened.
- Provide a 50% increase to Taxation income (thus the benefits occur monthly and at year end Census Taxes)
- Cause +1 War Exhaustion when started
- Cause +0.1 War Exhaustion per month
- In EU3 and NA war taxes last for a period of one year.
- In IN, war taxes last as long as you are at war, but they can be stopped at any time after the first full year.
Yearly Census Taxes
This is paid on the 1st of January every year and appears with its name in the Ledger. Since it represents income of the year that just ended, it only has a value there for last year's column. The amount is calculated with the same formula as Taxation (except of course not divided by 12 and without any looting), with extra modifiers:
Province Census Taxes = (Base Tax + Added Tax) * (National Modifiers + Province Modifiers) * Census Tax Modifiers
Census Tax Modifiers
- Core Tax Modifier is 100% for core provinces and 10% for non-core provinces.
- Constable - adds 25% (Divine Wind 5.1), previously 50%. This is additive to the previous percent.
(For modders, this is the direct_tax_percentage province modifier.)
The amount of Census Taxes is calculated on the day of payment (1 January) and the modifiers used are the modifiers on that day, irrespective of how they were for the duration of the whole previous year.
Harbor fees are generated by the Center of Trades a nation owns. Every merchant that operates in a CoT pays 3 ducats per year to the nation owning that CoT. Thus the equation to determine monthly income from harbor fees is:
(Number of merchants in all owned CoTs x 3) Monthly Harbor Fees = --------------------------------------------- 12
The equation for the monthly Tolls for a colony is:
10 x Population Units ----------------------- x Trade Efficiency 12
The equation for a city is:
10 + Population Units ----------------------- x Trade Efficiency 12
Please note that the formula for Population Units differs itself between a colony and a city. As can be seen in the relevant page the base tax of a province has no effect on the Population Units of a colony.