This research aims to describe and analyze the effect of work environment on employee performance . This research is explanatory research . The subject of samples in this research 79 employees Kantor Pelayanan Pajak Pratama Malang Utara. Analysis of the data used is descriptive analysis and multiple linear regression analysis. The result of research indicate that based on the descriptive analysis showed that respondents agreed majority physical work environment and work environment that is non-physical good that the company had improved employee performance. The results of multiple linear regression analysis showed that the partial physical work environment has a significant influence on the performance of employees and non-physical work environment also has a significant influence on employee performance. The test results showed simultaneous physical work environment and the non-physical work environment has a significant influence on employee performance.