The study examined the impact of tax related revenue on economic stability of Adamawa State, The study adopted a survey method of research design in the form of cross-sectional study in which data was collected through questionnaire administered to 187 respondents from Adamawa State Board of Internal Revenue and other stakeholders in the state. The collected data was analyzed using descriptive, correlation and regression analysis in other to establish the impact of tax related revenue of economic stability of Adamawa State. The result of the analysis revealed that tax revenue sources, including PAYE and WHT are significant determinants of economic stability in Adamawa State. However, specific revenue measures like PAYE and WHT might have short-term benefits but pose challenges for long-term sustainability, as indicated by the explosive behavior implied by the error correction terms. Therefore, while tax revenue is crucial for stability and infrastructural development, careful policy considerations are needed to ensure these revenue streams contribute to sustainable economic and infrastructural progress. The study therefore, recommends that policymakers to strengthen revenue collection systems to sustain and stimulate economic development. Diversifying revenue sources beyond traditional taxes such as PAYE, CIT, WHT, DAT, and ADT can mitigate overdependence on any single stream and reduce vulnerabilities associated with fluctuations in specific revenue types. Overall, a strategic approach focused on expanding and stabilizing IGR, coupled with prudent fiscal management, will support sustainable infrastructural development and foster resilient economic stability in Adamawa State.