How to Add a Tax Rate in Xero

Quick summary

Adding a tax rate in Xero takes just a few clicks through the Accounting menu under Advanced settings. Once created, the custom tax rate is saved to your Xero account and ready to apply to transactions immediately.

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. Tap Tax Rates to proceed.
4. Click New Tax Rate.
5. Enter a unique Tax Rate Display Name into the provided input field.
6. Fill in the Tax Components details — including the description and corresponding percentage — into their respective input fields.
7. If needed, click Add a Component to include additional tax components.
8. Review your input and click Save.
9. The new tax rate will be added and confirmed in your Xero account.