Taxes may be collected every week from the populace of your fiefs. In Mount&Blade, taxes accumulate so you don't have to visit every week. Warband improved on tax collection by removing the need to visit at all, as you automatically receive taxes along with your weekly payments.
|Fief type|| Base income|
| Base income|
The prosperity of each fief also affects the amount of taxes they produce. You can raise the prosperity of a town by making sure that its caravans reach their destinations, and by completing quests from its Guild Master. For villages, stop them from being raided, kill bandits if they do invade, build improvements, and complete quests given by the Village Elders. Also, when repeatedly purchasing imported goods from a town or village, the prosperity will eventually drop due to the lack of these goods. The import items will no longer be available until caravans have returned them, which can take a rather long time.
Tax efficiency is unaffected by bandits, raiding, or looting. It is instead a property of how many fiefs you personally own, and the exact scale depends on the campaign difficulty level chosen. When the campaign AI is set to "poor", you can hold 6 fiefs before tax inefficiency kicks in, and each fief increases inefficiency by 3%. When set to "average", you can hold 4 fiefs before the effect begins, with each fief adding 4%. With "good" campaign AI, you may only have 2 fiefs before you receive 5% inefficiency per extra fief. The maximum efficiency loss on any difficulty is 65%.
As a result of tax inefficiency, it is advisable once a strong economic basis is established (such as with Productive Enterprises), that you refuse villages and castles as fiefs (which often cost more than they're worth to defend anyway) and only accept towns. However, gaining towns often requires besieging them yourself and having high renown if you do not own your own kingdom.