How to Add a Tax Rate in Xero
- George Apostolov
How to Add a Tax Rate in Xero: step-by-step guide
On Xero's main dashboard, go to the top menu bar and click 'Accounting'.
Choose 'Advanced' from the list of options.
After that, tap 'Tax Rates' to proceed.
Click 'New Tax Rate'.
Following that, come up with a unique Tax Rate Display Name and enter it into the provided input field.
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.
If you wish to include more components, simply click the 'Add a Component' button.
Once done, review your input and click 'Save'.
After completing these steps, the new tax rate will be added to your Xero account.
Quick answer: 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.
About this Xero tutorial
Create custom tax rates in Xero by configuring display names and tax components in the Advanced accounting settings. Save your new rates easily. This guide shows how to add a Tax Rate in Xero in 9 steps, starting with "On Xero's main dashboard, go to the top menu bar and click 'Accounting'" and finishing with "After completing these steps, the new tax rate will be added to your Xero account". The interactive demo above is a click-through copy of the real Xero interface, so you can rehearse each step before doing it in your own account.
Frequently asked questions
How many steps does it take to add a Tax Rate in Xero?
9 steps. Each one is listed in order above, and the demo highlights exactly where to click.
Can I try it without changing my own account?
Yes. Clicking through the demo doesn't touch your Xero data or settings. Once you know the flow, repeat it in your own workspace.
This tutorial is filed under Xero. Related guides: How to Add a Tracked Inventory Item in Xero, How to Add a User in Xero and How to Add an Account in Xero. Last reviewed 05 Oct 2026.
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