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Tax is major source of state revenue which is used for funding the Government's expenditures and development programs. Tax compliance is willingness of taxpayers' to comply with tax laws, declare the correct income, claim the correct deductions and exemptions, and pay all taxes on time. Tax non-compliance is failing to file a tax return; under reporting of taxable income; overstating tax claims such as deductions and exemptions and failing to make timely payment of tax liability. which is one of the problem many developing country face when it comes to tax administration. The primary focus of the study is on large tax payer in Addis Ababa City Administration. The research observe factors (tax compliance cost, structure of tax system, knowledge and fairness of tax system, quality services of tax authority and transparency of tax system) and their impact on tax compliance.