# Upkeep, Debt & Bankruptcy

{% hint style="info" %}
**Tax Time:** 12 PM EST\
We generally **recommend avoiding percentage-based taxes**, as players with **larger balances** may end up paying **significantly more** than those with **smaller balances**. Ultimately, however, the decision is **entirely up to each town owner** and how they **choose to manage their economy**.
{% endhint %}

#### Town Taxes

Many towns choose to tax their residents to help cover daily upkeep costs. You can view a town’s current tax rates by using **/t \<town name>** or **/towny prices** in-game. When taxes are collected, the money is automatically taken from player balances and deposited directly into the Town Bank.\
Town taxes are collected daily at **12 PM EST**.\
\
As a mayor, you can set a flat tax amount using **/t set taxes \<amount>** or enable percentage-based taxes using **/t toggle \<taxpercent>**. Keep in mind that percentage taxes may make your town less appealing to new residents, especially players with larger balances.

#### Bankruptcy & Ruined Towns

| Town Rank  | Daily Upkeep      | Member Requirement |
| ---------- | ----------------- | ------------------ |
| default    | $45 per townblock | N/A                |
| Ruins      | $45 per townblock | 0                  |
| Settlement | $45 per townblock | 1                  |
| Hamlet     | $45 per townblock | 5                  |
| Village    | $45 per townblock | 15                 |
| Town       | $45 per townblock | 30                 |
| Large Town | $45 per townblock | 45                 |
| City       | $45 per townblock | 60                 |
| Large City | $45 per townblock | 75                 |
| Metropolis | $45 per townblock | 100                |

To avoid bankruptcy, your Town Bank must always have enough money to cover your daily upkeep costs. If your town cannot afford upkeep, it will enter bankruptcy and your bank balance will go negative. While your town is bankrupt, you won’t be able to make changes until enough money has been deposited to bring your balance back above zero. Your town’s debt limit is based on the combined value of all claimed land, outposts, and plots, with a maximum debt cap of **$250,000**. If your town reaches this debt limit, it will enter a **Ruined** state for **72 hours**. For the first **24 hours**, your town cannot be reclaimed but can still be raided. During the final **48 hours**, your town becomes reclaimable for **$10,000** using: **/t reclaim** If your town is not reclaimed before the timer expires, it will be permanently deleted.

#### Nation Upkeep & Taxes

Nation upkeep is much simpler than town upkeep. Each nation pays **$1,000 per day for every town within the nation**. Nation leaders can also charge taxes to towns using: **/n set taxes \<amount>** Unlike towns, nations cannot use percentage-based taxes.


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