As countries accelerate climate action, carbon taxes are becoming a crucial tool for reducing emissions – pricing carbon to drive decarbonisation and incentivise cleaner alternatives. This report aims to guide governments in the policy design and strategic integration of digital technologies in carbon tax implementation considering the opportunities and challenges of an evolving global carbon economy. It examines established carbon tax frameworks, with a focus on how they addressed equity concerns and business competitiveness challenges. It also explores emerging models that combine carbon tax approaches with ways to link carbon taxes with carbon markets through carefully curated offset mechanisms. Additionally, the report presents the state-of-the-art in the emerging and most promising digital technologies that can improve carbon tax implementation, by enhancing transparency, effectiveness, and public support.