The subject of this work is the study of tax incentives for sustainable agricultural development. In current realities, this area is recognized as a priority strategic direction of the country’s state policy. This is a branch of the economy that produces agricultural products for human needs. The article reveals the concepts of crop production and animal husbandry. It is noted that the sustainable development of agriculture contributes to food security, the creation of new jobs, the economic advancement of territories, and also affects pricing policy and the well-being of the population. The authors prove that the most effective instrument of state support in the industry under consideration should be recognized as a tax institution, which means a set of subjects of the tax sphere and ways of their interaction. The historical experience of agricultural taxation has shown the stages of transformation in economic, social and political conditions. The tax conditions of the agricultural sector varied depending on various factors. They became either tougher or softer. However, tax incentives have always been provided. Some current tax breaks in this sector of the economy related to land taxation (Article 394 of the Tax Code of the Russian Federation), transport taxation (paragraph 2 of sub-paragraph 5 of Article 358 of the Tax Code of the Russian Federation), VAT (paragraph 2 of Article 164 of the Tax Code of the Russian Federation) are outlined. For the most effective stimulation of the sustainable development of the studied sector, tax measures that reduce the taxpayer's burden are proposed: additional tax benefits, tax credits, tax deductions, tax subsidies, tax holidays. Based on the results of the study, generalized conclusions were drawn.