Using 2011—2018 digital financial inclusion index measured by Peking University and local tax panel data, we studied the relationship between the development of digital financial inclusion and local taxation. It is found that the development of digital financial inclusion can significantly promote the local taxation growth. After considering the problem of endogenous variables, this conclusion is still firmly established. In quantile regression, it shows that digital financial inclusion has a small impact on the local tax revenue and has a weak statistical significance at low quantiles. Digital financial inclusion has a strong impact on the local tax revenue and has a strong statistical significance at high quantiles. The impact of digital financial inclusion on local taxation has a threshold effect, and its impact on local tax varies significantly at different stages of development. Digital financial inclusion promotes the tax growth mainly through the expansion of digital financial inclusion and the deepening of mobility and facilitation.