This research aims to analyze the local government financial independence and dependence of the regencies/ municipalities in Special Region of Yogyakarta (DIY) and the causes of the independence level differences. The research method used was descriptive quantitative and qualitative with the population of the regencies and municipalities in DIY in 2016-2018. The analysis taken toward the Realization Reports of the Regional Income and Expenditure Budget (APBD) applied the Independence Ratio and Dependence Ratio. The research results show that in 2016-2018, the highest independence level was achieved by Yogyakarta Municipality with the average of 60%. On the other hand, Gunung Kidul Regency had the lowest independence level with the average of 16% each year. The highest Independence Ratio was shown by Gunung Kidul Regency reaching the average of 83% while Yogyakarta Municipality had the lowest Independence Ratio having the average of 63%. The main factors of the independence level differences lie on the local potentials possessed by each area and the unoptimized role of human resources in the management of local potentials.