The study sought to establish the effect of taxpayer education on voluntary tax compliance, among Small and Micro-Enterprises (SMEs) in Mwanza City- Tanzania. Specifically, the study establishes the level of taxpayer education among SMEs, the level of voluntary tax compliance among the SMEs and the effect of taxpayer education on the level of voluntary tax compliance, among entrepreneurs in Mwanza City. A cross-sectional descriptive research design was used. Both primary and secondary data were collected using a questionnaire. 85% of the respondents, admitted to have gained understanding on the basic tax laws and procedures, while 15% showed that there was no improvement in understanding the basic tax laws. 78.7% of the respondents agreed that through the taxpayer education, they had been able to understand and become aware of their taxpayer rights and obligations. 21.3% of the respondents stated that taxpayer education, had not been able to help them in understanding and becoming aware of their tax rights and obligations. 83% of the respondents agreed that taxpayer education helped them in understanding clearly the procedure of paying taxes, while 17% claimed that despite the tax education they received, they did not understand clearly the procedure of paying taxes. Responses from the staff indicated that 80% of the returns were lodged timely, while the remaining 20% were not lodged within statutory periods and would attract penalties and fines for late filling. Of the returns lodged 67% declared accurate tax liability, while the remainder contained errors. Additional taxes were assessed through auditing. 78% of those who were required to pay taxes, actually paid within the stipulated time frame according to the law, while the remaining 22% were late in paying taxes, which necessitated the use of enforcement strategies. It is thus recommended that taxation should be taught at all levels of education, starting from primary schools upwards with an emphasis on promoting voluntary tax compliance.