ABSTRACT The problem of tax evasion prevailing in the country need to be addressed as it causes loss of revenue leading to non realization of budget plans and slow economic growth. The study intended to analyze the causes of tax evasion among small businessmen in Tanzania a case study of carpentry workshop at Nyakato National in Ilemela District, Mwanza City. The overall objective of the study was to determine the causes of tax evasion among small business people. Various literature were reviewed to understand the situation in other regions and therefore a researcher intended to carry out a related study in causes of tax evasion among small businessmen to reflect situation in Ilemela District, Mwanza City. The study adopted a descriptive research design incorporating qualitative and quantitative approaches whereby a sample of 70 respondents was drawn for the purpose of the study. The sampling techniques used were purposive, simple random and snowball sampling and a researcher collected data using questionnaires and interviews. The study revealed that high tax rates, lack of tax education to small sized business people, presence of multiplicity of taxes, and misuse of public fund by government official as well as collusion with taxpayers and bribery of tax officials largely influences tax evasion to small business individuals. The following recommendations are made to eliminate or minimize the problem; the marginal tax rates should be kept low, tax education should be provided to small businessmen, avoiding multiplicity of taxes, tax officials colluding with taxpayers should be punished and there are should be judicious and rational expenditure of government revenue.