1-Tax Rate. Choosing option 1 allows you to set a new tax rate for the next season. This rate will remain at that level until you change it. The percentage you raise or lower taxes is the inverse percentage you will raise or lower loyalty in that fief. Raising taxes 10%, from 9% to 9.9% will lower current loyalty by 10%.

It is advisable to raise your taxes Slowly. As you raise Taxes the fief's Loyalty will go down. If you raise the tax level too quickly it is possible that the fief will go into rebellion. Taxing the fief over 20% (15% after the Plague) is not advisable as it will cause loyalty to drop, and raise the specter of spontaneous peasant rebellions.