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The taxation menu is in the town hall. Click on the "tax rate" button in there.

At 0% tax, you will eventually have 100% of your max population in the city. At 100% tax, they will all gradually move out. At 50%, your cottages will balance at half full, and bring in the max gold (.5 * .5 = .25) that you can get without actively adjusting things with blessings. The reason this is max is that if you have more the result drops. If you have 60% tax rate, you will end up with 40% of your max population, and .60 * .40 = .24 (less that the .25 for 50% tax). If you have the 20% tax rate that the game points you to having, the result is .20 * .80 = .16.

Understand that getting gold is not the be all - end all of the game. If you have enough gold, set the tax rate at 0% and pack in the citizens to make more in the fields, or to put more soldiers in your army.

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Q: How do you get the taxation on evony?
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