Is Taoism a Religion?

The Answer is Yes and No

Taoism is widely observed among Chinese. It is being practised both as a philosophy and a religion.

In China, those who study Tao as a philosophy belong to Daojia(道家), or "Tao School". Those who practice Taoism as a religion belong to Daojiao (道教), or "Tao Religion". Daojia focuses more on understanding and practicing Tao; while daojiao revolves more around worshiping and rituals.

There are of course also people who take the two approaches at the same time.

The difference may not be obvious to people outside China.

Tao Te Ching

Although Tao Te Ching of Lao zi was not written as a religious text, its impact on religion in China is tremendous. Taoism pre-existed Buddhism in China, and it was used to help to spread the religion. Because of this, even today, Tao Te Ching is still widely used as a book to interpret Buddhism.