diff --git a/src/components/ReportActionItem/MoneyRequestView.tsx b/src/components/ReportActionItem/MoneyRequestView.tsx
index be705ba50800..273f7581f08c 100644
--- a/src/components/ReportActionItem/MoneyRequestView.tsx
+++ b/src/components/ReportActionItem/MoneyRequestView.tsx
@@ -196,6 +196,8 @@ function MoneyRequestView({allReports, report, policy, shouldShowAnimatedBackgro
     const taxRatesDescription = taxRates?.name;
     const taxRateTitle = updatedTransaction ? getTaxName(policy, updatedTransaction) : getTaxName(policy, transaction);
 
+    const fallbackTaxRateTitle = transaction?.taxValue;
+
     const isSettled = isSettledReportUtils(moneyRequestReport?.reportID);
     const isCancelled = moneyRequestReport && moneyRequestReport?.isCancelledIOU;
     const isChatReportArchived = useReportIsArchived(moneyRequestReport?.chatReportID);
@@ -776,7 +778,7 @@ function MoneyRequestView({allReports, report, policy, shouldShowAnimatedBackgro
                 {shouldShowTax && (
                     <OfflineWithFeedback pendingAction={getPendingFieldAction('taxCode')}>
                         <MenuItemWithTopDescription
-                            title={taxRateTitle ?? ''}
+                            title={taxRateTitle ?? fallbackTaxRateTitle}
                             description={taxRatesDescription}
                             interactive={canEditTaxFields}
                             shouldShowRightIcon={canEditTaxFields}
diff --git a/src/libs/DebugUtils.ts b/src/libs/DebugUtils.ts
index 5f4953431f54..4cc3202dd07a 100644
--- a/src/libs/DebugUtils.ts
+++ b/src/libs/DebugUtils.ts
@@ -943,6 +943,7 @@ function validateTransactionDraftProperty(key: keyof Transaction, value: string)
         case 'bank':
         case 'cardName':
         case 'cardNumber':
+        case 'taxValue':
             return validateString(value);
         case 'created':
         case 'modifiedCreated':
@@ -1080,6 +1081,7 @@ function validateTransactionDraftProperty(key: keyof Transaction, value: string)
                     accountant: CONST.RED_BRICK_ROAD_PENDING_ACTION,
                     splitExpenses: CONST.RED_BRICK_ROAD_PENDING_ACTION,
                     isDemoTransaction: CONST.RED_BRICK_ROAD_PENDING_ACTION,
+                    taxValue: CONST.RED_BRICK_ROAD_PENDING_ACTION,
                 },
                 'string',
             );
diff --git a/src/libs/Violations/ViolationsUtils.ts b/src/libs/Violations/ViolationsUtils.ts
index 5ab801a56a0a..e15112106c38 100644
--- a/src/libs/Violations/ViolationsUtils.ts
+++ b/src/libs/Violations/ViolationsUtils.ts
@@ -304,6 +304,10 @@ const ViolationsUtils = {
         // const hasOverTripLimitViolation = transactionViolations.some((violation) => violation.name === CONST.VIOLATIONS.OVER_TRIP_LIMIT);
         const hasCategoryOverLimitViolation = transactionViolations.some((violation) => violation.name === CONST.VIOLATIONS.OVER_CATEGORY_LIMIT);
         const hasMissingCommentViolation = transactionViolations.some((violation) => violation.name === CONST.VIOLATIONS.MISSING_COMMENT);
+        const hasTaxOutOfPolicyViolation = transactionViolations.some((violation) => violation.name === CONST.VIOLATIONS.TAX_OUT_OF_POLICY);
+        const isPolicyTrackTaxEnabled = !!policy?.tax?.trackingEnabled;
+        const isTaxInPolicy = Object.keys(policy.taxRates?.taxes ?? {}).some((key) => key === updatedTransaction.taxCode);
+
         // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
         const amount = updatedTransaction.modifiedAmount || updatedTransaction.amount;
         // eslint-disable-next-line @typescript-eslint/prefer-nullish-coalescing
@@ -425,6 +429,13 @@ const ViolationsUtils = {
             newTransactionViolations = reject(newTransactionViolations, {name: CONST.VIOLATIONS.MISSING_COMMENT});
         }
 
+        if (isPolicyTrackTaxEnabled && !hasTaxOutOfPolicyViolation && !isTaxInPolicy) {
+            newTransactionViolations.push({name: CONST.VIOLATIONS.TAX_OUT_OF_POLICY, type: CONST.VIOLATION_TYPES.VIOLATION});
+        }
+
+        if (isPolicyTrackTaxEnabled && hasTaxOutOfPolicyViolation && isTaxInPolicy) {
+            newTransactionViolations = reject(newTransactionViolations, {name: CONST.VIOLATIONS.TAX_OUT_OF_POLICY});
+        }
         return {
             onyxMethod: Onyx.METHOD.SET,
             key: `${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${updatedTransaction.transactionID}`,
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index f71a01854feb..cbe084de43b5 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -4338,6 +4338,7 @@ function getUpdateMoneyRequestParams(
 
     const hasModifiedCurrency = 'currency' in transactionChanges;
     const hasModifiedComment = 'comment' in transactionChanges;
+    const hasModifiedTaxCode = 'taxCode' in transactionChanges;
     const hasModifiedDate = 'date' in transactionChanges;
 
     const isInvoice = isInvoiceReportReportUtils(iouReport);
@@ -4346,7 +4347,15 @@ function getUpdateMoneyRequestParams(
         isPaidGroupPolicy(policy) &&
         !isInvoice &&
         updatedTransaction &&
-        (hasModifiedTag || hasModifiedCategory || hasModifiedComment || hasModifiedDistanceRate || hasModifiedDate || hasModifiedCurrency || hasModifiedAmount || hasModifiedCreated)
+        (hasModifiedTag ||
+            hasModifiedCategory ||
+            hasModifiedComment ||
+            hasModifiedDistanceRate ||
+            hasModifiedDate ||
+            hasModifiedCurrency ||
+            hasModifiedAmount ||
+            hasModifiedCreated ||
+            hasModifiedTaxCode)
     ) {
         const currentTransactionViolations = allTransactionViolations[`${ONYXKEYS.COLLECTION.TRANSACTION_VIOLATIONS}${transactionID}`] ?? [];
         // If the amount, currency or date have been modified, we remove the duplicate violations since they would be out of date as the transaction has changed
diff --git a/src/types/onyx/Transaction.ts b/src/types/onyx/Transaction.ts
index 0ca2909fcd4a..38459cad2539 100644
--- a/src/types/onyx/Transaction.ts
+++ b/src/types/onyx/Transaction.ts
@@ -406,6 +406,9 @@ type Transaction = OnyxCommon.OnyxValueWithOfflineFeedback<
         /** The transaction tax code */
         taxCode?: string;
 
+        /** The transaction tax value */
+        taxValue?: string | undefined;
+
         /** Whether the expense is billable */
         billable?: boolean;