THE WAR TAX. It was once the lexicon of the gangs, but the name quickly caught on. Today, the term War Tax1 is commonly used to describe the extortion payments demanded by gangs from ordinary Hondurans. Extortion is a significant problem in Honduras and has wide societal impacts: it pulls back economic development, heightens insecurity, and is intimately linked with social problems like school desertion and migration. This study identifies new trends in extortion in Honduras. We also evaluate the state’s response to extortion and create recommendations for improvements to policies and practices aimed at countering extortion. Our work is based on 46 bibliographic sources, the collection of primary and secondary quantitative data, and in-depth interviews with 47 people including victims of extortion, extortionists, and public officials working to counter extortion.