This research delved into the intricate dynamics of taxation policies, regulations, and local government performance in Entebbe, Wakiso District, Uganda. Employing a mixed-methods approach, the study garnered insights from 57 key stakeholders directly involved in local governance through structured questionnaires and in-depth interviews. The analysis of participants' responses on the relationship between various policies and local government performance underscores a consensus on the positive impact of aligned fiscal policies with local development priorities. Similarly, findings regarding the relationship between regulations and local government performance emphasize the crucial role of compliance in enhancing service delivery and accountability. The study also sheds light on the significance of streamlined taxation implementation practices for bolstering fiscal responsibility and overall local government performance. In discussing these findings, the research situates itself within the context of existing literature, emphasizing the unique nuances of Entebbe, Wakiso District. The implications for policymakers, local government practitioners, and avenues for future research are explored, providing actionable insights for transparent governance practices in alignment with community development objectives. This study concludes by highlighting its contribution to the scholarly discourse on governance, public finance, and policy analysis. Recommendations are made for policymakers to refine regulations and formulate evidence-based policies, while the study identifies areas for future research to deepen the understanding of the intricate relationships between taxation policies and local governance dynamics.