This chapter examines how Shanghai’s taxation and local fiscal structure changed from the postwar period of the Republic of China (1945–1949) up to the early years of the People’s Republic of China (1949–1956). The Chinese fiscal and taxation system experienced a series of dramatic changes before and after the establishment of the PRC, and therefore this chapter considers the changes in the fiscal structure and behavior of local governments due to the institutional transformation by tracing the historical development of the fiscal structure of Shanghai Municipality, carefully articulating the key differences between the fiscal and taxation systems of each period.