Then the Pharisees went and plotted how to entangle him in his words. And they sent their disciples to him, along with the Herodians, saying..."tell us...what you think. Is it lawful to pay taxes to Caesar, or not?" But Jesus, aware of their malice, said, "Why put me to the test, you hypocrites? Show me the coin for the tax." And they brought him a denarius. And Jesus said to them, "Whose likeness and inscription is this?" They said, "Caesar's." Then he said to them, "Therefore render to Caesar the things that are Caesar's, and to God the things that are God's." When they heard it, they marveled. Matt. 22:15-21, ESV.
Confrontation is a two-way street. When Jesus challenged the Jewish leaders in His parables, they were quick to counterattack. In the query about paying taxes they presented Him with a loaded question that contained a dilemma. If Jesus replies that it is unlawful to pay taxes to Caesar, they will promptly report Him to the Roman authorities, with arrest quickly following. On the other hand, if He approves the lawfulness of paying taxes to Caesar, He will lose influence in the eyes of the people. The Jews held that God alone was King and that to pay taxes to any earthly ruler was to admit the validity of that kingship and thus insult God. Whatever answer Jesus gives to His detractors will open Him to trouble.
Jesus' answer is both unique and wise. Asking to see one of their coins, He gets them to admit that it has Caesar's portrait on it. At that point He sets forth the maxim that both Caesar and God are to be paid their dues. That unexpected answer ends the attack. The Jewish leaders quickly see that Jesus has escaped from the trap they had so carefully laid for Him.
Perhaps the most remarkable thing about Jesus' answer is His point that Caesar's realm can be separated from God's. As a result, His followers hold dual citizenship in both the kingdom of God and in a particular nation.
Unfortunately, in a less-than-perfect world, a Christian's responsibility to those two realms comes into conflict from time to time. Matthew 22 does not tell us whether God's kingdom has priority over Caesar's or vice versa, or whether the two are equal. The early church had to work out that problem. While Paul and Peter argued that the rulers of earthly governments ought to be obeyed since they are God's agents (Rom. 13:1-7; 1 Peter 2:13, 14), the New Testament also makes it clear that when the dictates of an earthly ruler come into conflict with God's commands, the Christian "must obey God rather than human beings" (Acts 5:29, NIV).