While the effect of reading strategies on L2 test performance has been extensively researched, the effect of test-taking strategies remains underexplored, with mixed results due to varying contextual factors. This study, therefore, investigated the latent structure of test-taking strategies and the relationships among test-taking strategies, lexico-grammatical ability, and test performance in a test of local-level reading comprehension questions (LRCQs) by 217 Chinese EFL learners. Confirmatory factor analyses revealed test-taking strategies could be composed of test-management and test-wiseness strategies. Structural equation modeling provided further empirical evidence for this conceptual distinction, as only test-management strategies were significantly affected by lexico-grammatical ability. However, while lexico-grammatical ability had a large effect on test performance, neither test-management nor test-wiseness strategies had a significant impact on test performance. This study helps researchers and teachers better understand the test-taking strategies at play in LRCQs and their impact on test performance and carries implications for L2 reading pedagogy.