The Shire has a museum (mathom house) and a postal service, which implies they pay taxes for some level of public service.
Maybe they pay the mailman for deliveries? Tip at the museum to keep it open?
I see no reason why mail could not be carried by travellers on a barter basis. If I owned my own home and a pony, I could subsist quite comfortably by carrying the letters of farmers, I think.
And yet somehow plenty of them were grumpy and Bilbo himself was dissatisfied there and not fond of many people.
HOAs confirmed in the Shire.
If you really want a deep dive on the Shire:
https://nathangoldwag.wordpress.com/2024/05/31/the-moral-economy-of-the-shire/
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Technically they never really stopped, as the areas settled by Hobbits never considered themselves separate from the Numenorian empire.
Even in the absence of the Line of Kings, the Hobbits continued to uphold their side of the contract with the State: to maintain the roads, and to honor the King’s messengers and speed them on their way (not that there were any, anymore, but if one had showed up they would have helped him out). The office of Thain was even established as a ‘holding spot’ for the missing Kings.
So really, for the Hobbits it was less going back to a monarchy and more finding their boss and dragging him back from his vacation.
