Land tax is one of the sources of formation of local budgets, filling their revenue part. The aim is to analyze the legal framework of the existing system of land taxation, to substantiate the need to increase mandatory payments for land. The following methods were used - monographic - to study the foreign experience of land taxation, statistical - to collect data on tax revenues, the state of the land fund, analytical - in the study of methods of tax payment, on the basis of abstract-logical method problems were identified and ways of their solution were proposed. Results - foreign experience of tax regulation has shown that fiscal policy is aimed at creating favorable preferential conditions for agricultural producers and improving soil quality. The existing domestic methodology of tax payments depending on the purposes of application is considered. The analysis of tax payments in dynamics for 7 years is presented. Land tax rates and rent in the context of target use are calculated. It is revealed that the tax for peasant (farm) farms in accordance with the income from the sale of agricultural products is not quite acceptable, as the costs of its production are not taken into account. Conclusions - it is established that a 40-fold increase in the land tax is premature, since to date such a measure is legislatively approved in the amount of 20-fold. It is recommended to increase the tax burden on residential lands for individual residential construction, shopping and entertainment centers and industrial facilities. Involvement in agricultural turnover of 62.5 million hectares of pastures, concentrated in the category of reserve lands, will make it possible to improve their quality level and receive additional money for the state budget.