This paper examines the impact of local tax limits on new teacher quality. Using data from the National Center for Education Statistics, we find that tax limits systematically reduce the average quality of education majors, as well as new public school teachers in states that have passed these limits. The average relative test scores of education majors in tax limit states declined by 10 percent as compared to the relative test scores of education majors in states that did not pass limits. This relationship is strengthened if we control for school finance equalization reforms or examine tax limits passed in two different periods. Journal of Public Economics 80: 49-71, April.