The processes of fiscal decentralization have provided new opportunities for local self-governments: independent formation of local budgets; direct intergovernmental relations; expansion of the tax base, etc. The steps taken in the field of decentralization are currently not systemic. The distribution of fiscal payments between different levels of the budget system is the purpose of the tax system development, which would allow to provide quality social services to the population and influence the economic development of the territory. The main directions of tax system development on the basis of tax management are substantiated as following: strengthening the role of local taxes; establishing the effective interaction of local governments with economic entities operating in the territory to increase budget revenues; ensuring the fair distribution of the tax burden and its reduction while seeking budgetary compensators; strengthening the tax control; ensuring the efficient informational and explanatory work and interaction of local self-government bodies and taxpayers. The author's vision of the tax system within the new architecture of the administrative-territorial system is offered. The inclusion of personal income tax in local taxes and change in the mechanism of crediting the tax to local budgets are substantiated. There are two alternatives to change the procedure for crediting personal income tax to local budgets, due to which the associated burden will be distributed among all participants: 1) crediting personal income tax to local budgets at the place of residence of the individual payer; 2) giving the individual payer the right to choose which budget should include the amount of tax paid (by place of work or place of residence). The directions of increasing the property taxes accumulated in local budgets are defined. The paper develops a model of the form of self-taxation of the population in territorial communities. According to the model, the residents are involved in the accumulation and distribution of tax resources. The suggested model is based on the accumulation of financial resources by a parity principle: the amount of financial contribution of local governments is determined at a level not lower than the amount contributed by residents. 

taxes, territorial community, tax management, personal income tax, self-taxation