The article explains the necessity and importance for the state and taxpayers for a monitoring system of tax benefits (preferences) based on the evaluation of their effectiveness and efficiency in order to make decisions on the abolition or transformation and extension of existing tax incentives. Concretized objects evaluation and monitoring in the context of their groups: social, investment and general tax benefits, as well as clarifies notions of efficiency and effectiveness. Developed and the author's approach and methods, criteria and indicators for evaluating the effectiveness and efficiency of social tax benefits, investment tax incentives and general tax benefits. Proposed algorithm, a phased sequence of formalized procedures for the evaluation and decision-making based on its results.