Taxable capacity is the ability of a tax payer to pay the tax while retaining a reasonable level of disposable income. It is the extent to which an individual may be taxed and yet retain enough disposable income to enable him and his family to live the kind of life they are used to.

Taxable capacity of a country refers to the extent to which a country can raise revenue through tax without hindering economic activities.

Factors that determine the taxable capacity of a country:

Popularly of the government: A popular government will tend to raise the taxable capacity of its citizens siche their willingness to pay the taxes imposed on them is raised.

Benefits derived from the government : Coteries Paribas, the more benefits that people get from the government, the more tax they are willing to pay hence increase in taxable capacity.

General distribution of the wealth: Where the wealth  is fairly distributed, it means many can  afford  to pay tax and vice versa.

The country's real wealth:    The larger, the higher the taxable capacity.

The tyres of taxes levied:       The more the taxes, the higher the taxable  capacity.

Peoples attitudes towards taxation: Generally where people have a negative attitude towards taxation, it affects the country's  taxable capacity.

The trust worthy of tax assessors and tax collectors.

The general political and economic stability will greatly influence the country's taxable  capacity.

The populations structure  where the majority of the people are dependants, then the taxable capacity is  bound  to be low.