# How to Add a Tax Rate in Xero

> To add a tax rate in Xero, go to Accounting, select Advanced, and tap Tax Rates. Click New Tax Rate, enter a unique Display Name and Tax Components with percentages, click Add a Component if needed, and finally click Save to complete the process.

Canonical: https://livedemo.ai/tutorials/how-to-add-a-tax-rate-in-xero/
Apps: Xero
Updated: 2026-10-05
Interactive demo: https://story-api.livedemo.ai/workspaces/62255d3d3304f17b8f5e2d03/stories/692a01b7243f01ed60a4f90a/preview?step=1

## Steps

1. On Xero's main dashboard, go to the top menu bar and click 'Accounting'.
2. Choose 'Advanced' from the list of options.
3. After that, tap 'Tax Rates' to proceed.
4. Click 'New Tax Rate'.
5. Following that, come up with a unique Tax Rate Display Name and enter it into the provided input field.
6. Provide the Tax Components of the new tax rate you're about to create. Indicate the description, along with its corresponding percentage. Enter the details into their respective input fields.
7. If you wish to include more components, simply click the 'Add a Component' button.
8. Once done, review your input and click 'Save'.
9. After completing these steps, the new tax rate will be added to your Xero account.