Value-added tax, as one of the most important sources of government revenue, plays a significant role in providing sustainable income for urban management. In recent years, with the increase in the costs of urban services and the limitation of traditional sources of income for municipalities, attention has been paid to sustainable sources of income more than ever before. The purpose of this article is to examine the impact of value-added tax on sustainable municipal income, with an emphasis on Kashan Municipality. The present study is a scientific-analytical review and was conducted without the use of statistical software. The method of collecting information was library-based and using scientific articles, tax laws and regulations, municipal documents, and reliable domestic and foreign sources. The results of the studies show that value-added tax has been able to make an important contribution to increasing sustainable income for municipalities and reducing the dependence of urban management on unstable income, especially construction-related fees. This type of tax has also increased financial transparency, improved urban planning, and improved the quality of public services. However, challenges such as delays in resource allocation, revenue fluctuations due to economic conditions, and limited authority of municipalities in how to spend these revenues are considered to be the main obstacles to the optimal use of VAT. In Kashan, VAT revenues have also become one of the main sources of financing municipal development and service costs in recent years. Ultimately, strengthening the fair distribution system of VAT and creating efficient management mechanisms can contribute to greater sustainability of urban revenues and balanced development of cities.