The study aimed to investigate the relationship between taxpayers' awareness and tax compliance in local government, specifically in Lira district. The research objectives included establishing the relationship between understanding tax laws, knowledge of tax regulations, and knowledge of tax obligations. The study used a correlational research design, using questionnaires and interviews for data collection. The sample size was determined using purposive and simple random sampling techniques. The data was analyzed using SPSS software, and 172 respondents participated. The findings showed a positive correlation between understanding tax laws and tax compliance. In other wards, understanding tax laws contributes to tax compliance. Knowledge of tax regulations and policies also positively correlates with tax compliance. Finally, knowing tax rights and obligations positively correlates with tax compliance. The study recommends that the compliance of taxpayers in Lira district be improved through tax training, seminars, and workshops aimed at enhancing tax laws, regulations, and obligations. This would help maximize tax payers' compliance. Keywords: Taxpayers ‘Awareness, Tax compliance, Lira district.