Taxes are accepted as a necessary and stable form of government revenues, necessary for social and economic development. Consequently, while the Libyan government has invested a great deal of efforts toward enhancing its tax collection, self-employed taxpayers continue to exhibit poor levels of compliance with the government, consequently having a negative impact on the government’s revenues. Moreover, the role played by political factors in explaining tax evasion among self-employed taxpayers having regards to the political conditions operating in Libya, however, political structure has not been well investigated. It is important to understand this relationship as it might have a potential bearing on tax evasion behaviors. It is against this statement that this study seeks to determine the impact of political instability on tax evasion. The study utilized questionnaires that were administered to 369 self-employed taxpayers in Libya specifically in Libya while using Smart PLS version 4 for data analysis. The research results show that the level of political instability has a statistic positive correlation with the intention to engage in tax evasion behavior among the self-employed taxpayers in Libya. The implications of these findings include providing important policy recommendations for the Libyan tax authorities where and how to increase tax compliance in the self-employed sector, and therefore and to increase tax revenue and fight Tax evasion.