diff --git a/.changeset/large-months-yawn.md b/.changeset/large-months-yawn.md
new file mode 100644
index 0000000000..eed3fc7b05
--- /dev/null
+++ b/.changeset/large-months-yawn.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/dashboard": patch
+---
+
+fix(dashboard): support more decimals for tx rates
diff --git a/packages/admin/dashboard/src/components/inputs/percentage-input/percentage-input.tsx b/packages/admin/dashboard/src/components/inputs/percentage-input/percentage-input.tsx
index 945b7693b0..860f81b301 100644
--- a/packages/admin/dashboard/src/components/inputs/percentage-input/percentage-input.tsx
+++ b/packages/admin/dashboard/src/components/inputs/percentage-input/percentage-input.tsx
@@ -1,10 +1,22 @@
-import { Input, Text, clx } from "@medusajs/ui"
+import { clx, Input, Text } from "@medusajs/ui"
+import { getNumberOfDecimalPlaces } from "../../../lib/number-helper"
 import { ComponentProps, ElementRef, forwardRef } from "react"
 import Primitive from "react-currency-input-field"
 
-/**
- * @deprecated Use `PercentageInput` instead
- */
+const MIN_DECIMAL_SCALE = 2
+
+function resolveDecimalScale(
+  value: string | readonly string[] | number | undefined | null
+): number | undefined {
+  if (value == null || Array.isArray(value)) {
+    return MIN_DECIMAL_SCALE
+  }
+  return Math.max(
+    getNumberOfDecimalPlaces(parseFloat(value.toString())),
+    MIN_DECIMAL_SCALE
+  )
+}
+
 export const DeprecatedPercentageInput = forwardRef<
   ElementRef<typeof Input>,
   Omit<ComponentProps<typeof Input>, "type">
@@ -38,38 +50,56 @@ DeprecatedPercentageInput.displayName = "PercentageInput"
 export const PercentageInput = forwardRef<
   ElementRef<"input">,
   ComponentProps<typeof Primitive>
->(({ min = 0, decimalScale = 2, className, ...props }, ref) => {
-  return (
-    <div className="relative">
-      <Primitive
-        ref={ref as any} // dependency is typed incorrectly
-        min={min}
-        autoComplete="off"
-        decimalScale={decimalScale}
-        decimalsLimit={decimalScale}
-        {...props}
-        className={clx(
-          "caret-ui-fg-base bg-ui-bg-field shadow-buttons-neutral transition-fg txt-compact-small flex w-full select-none appearance-none items-center justify-between rounded-md px-2 py-1.5 pr-10 text-right outline-none",
-          "placeholder:text-ui-fg-muted text-ui-fg-base",
-          "hover:bg-ui-bg-field-hover",
-          "focus-visible:shadow-borders-interactive-with-active data-[state=open]:!shadow-borders-interactive-with-active",
-          "aria-[invalid=true]:border-ui-border-error aria-[invalid=true]:shadow-borders-error",
-          "invalid::border-ui-border-error invalid:shadow-borders-error",
-          "disabled:!bg-ui-bg-disabled disabled:!text-ui-fg-disabled",
-          className
-        )}
-      />
-      <div className="absolute inset-y-0 right-0 z-10 flex w-8 items-center justify-center border-l">
-        <Text
-          className="text-ui-fg-muted"
-          size="small"
-          leading="compact"
-          weight="plus"
-        >
-          %
-        </Text>
+>(
+  (
+    {
+      min = 0,
+      max = 100,
+      decimalScale,
+      decimalsLimit,
+      value,
+      className,
+      ...props
+    },
+    ref
+  ) => {
+    const resolvedDecimalScale = decimalScale ?? resolveDecimalScale(value)
+    const resolvedDecimalsLimit = decimalsLimit ?? resolvedDecimalScale
+
+    return (
+      <div className="relative">
+        <Primitive
+          ref={ref as any} // dependency is typed incorrectly
+          min={min}
+          max={max}
+          autoComplete="off"
+          decimalScale={resolvedDecimalScale}
+          decimalsLimit={resolvedDecimalsLimit}
+          value={value}
+          {...props}
+          className={clx(
+            "caret-ui-fg-base bg-ui-bg-field shadow-buttons-neutral transition-fg txt-compact-small flex w-full select-none appearance-none items-center justify-between rounded-md px-2 py-1.5 pl-10 text-left outline-none",
+            "placeholder:text-ui-fg-muted text-ui-fg-base",
+            "hover:bg-ui-bg-field-hover",
+            "focus-visible:shadow-borders-interactive-with-active data-[state=open]:!shadow-borders-interactive-with-active",
+            "aria-[invalid=true]:border-ui-border-error aria-[invalid=true]:shadow-borders-error",
+            "invalid::border-ui-border-error invalid:shadow-borders-error",
+            "disabled:!bg-ui-bg-disabled disabled:!text-ui-fg-disabled",
+            className
+          )}
+        />
+        <div className="absolute inset-y-0 left-0 z-10 flex w-8 items-center justify-center border-r">
+          <Text
+            className="text-ui-fg-muted"
+            size="small"
+            leading="compact"
+            weight="plus"
+          >
+            %
+          </Text>
+        </div>
       </div>
-    </div>
-  )
-})
+    )
+  }
+)
 PercentageInput.displayName = "PercentageInput"
diff --git a/packages/admin/dashboard/src/lib/number-helper.ts b/packages/admin/dashboard/src/lib/number-helper.ts
new file mode 100644
index 0000000000..861fd5cda6
--- /dev/null
+++ b/packages/admin/dashboard/src/lib/number-helper.ts
@@ -0,0 +1,19 @@
+/**
+ * Gets the number of decimal places in a number
+ * @param num - The number for which we are getting the number of decimal places
+ * @returns The number of decimal places
+ *
+ * @example
+ * getDecimalPlaces(123.456) // 3
+ * getDecimalPlaces(42) // 0
+ * getDecimalPlaces(10.0000) // 0
+ */
+export function getNumberOfDecimalPlaces(num: number): number {
+  // Convert to string and check if it contains a decimal point
+  const str = num.toString()
+  if (str.indexOf(".") === -1) {
+    return 0
+  }
+  // Return the length of the part after the decimal point
+  return str.split(".")[1].length
+}
diff --git a/packages/admin/dashboard/src/lib/percentage-helpers.ts b/packages/admin/dashboard/src/lib/percentage-helpers.ts
index 20af15db63..b0d48b51c8 100644
--- a/packages/admin/dashboard/src/lib/percentage-helpers.ts
+++ b/packages/admin/dashboard/src/lib/percentage-helpers.ts
@@ -1,6 +1,7 @@
 const formatter = new Intl.NumberFormat([], {
   style: "percent",
   minimumFractionDigits: 2,
+  maximumFractionDigits: 4,
 })
 
 /**
diff --git a/packages/admin/dashboard/src/routes/tax-regions/tax-region-create/components/tax-region-create-form/tax-region-create-form.tsx b/packages/admin/dashboard/src/routes/tax-regions/tax-region-create/components/tax-region-create-form/tax-region-create-form.tsx
index b7f91fcb61..9a13962238 100644
--- a/packages/admin/dashboard/src/routes/tax-regions/tax-region-create/components/tax-region-create-form/tax-region-create-form.tsx
+++ b/packages/admin/dashboard/src/routes/tax-regions/tax-region-create/components/tax-region-create-form/tax-region-create-form.tsx
@@ -3,7 +3,7 @@ import { useForm } from "react-hook-form"
 import { z } from "zod"
 
 import { InformationCircleSolid } from "@medusajs/icons"
-import { Button, Heading, Input, Text, Tooltip, toast } from "@medusajs/ui"
+import { Button, Heading, Input, Text, toast, Tooltip } from "@medusajs/ui"
 import { useTranslation } from "react-i18next"
 import { Form } from "../../../../../components/common/form"
 import { CountrySelect } from "../../../../../components/inputs/country-select"
@@ -221,6 +221,7 @@ export const TaxRegionCreateForm = ({ parentId }: TaxRegionCreateFormProps) => {
                               <PercentageInput
                                 {...field}
                                 value={value?.value}
+                                decimalsLimit={4}
                                 onValueChange={(value, _name, values) =>
                                   onChange({
                                     value: value,
diff --git a/packages/admin/dashboard/src/routes/tax-regions/tax-region-province-create/components/tax-region-province-create-form/tax-region-province-create-form.tsx b/packages/admin/dashboard/src/routes/tax-regions/tax-region-province-create/components/tax-region-province-create-form/tax-region-province-create-form.tsx
index bd69bdf7e4..868baf98f5 100644
--- a/packages/admin/dashboard/src/routes/tax-regions/tax-region-province-create/components/tax-region-province-create-form/tax-region-province-create-form.tsx
+++ b/packages/admin/dashboard/src/routes/tax-regions/tax-region-province-create/components/tax-region-province-create-form/tax-region-province-create-form.tsx
@@ -1,7 +1,7 @@
 import { zodResolver } from "@hookform/resolvers/zod"
 import { InformationCircleSolid } from "@medusajs/icons"
 import { HttpTypes } from "@medusajs/types"
-import { Button, Heading, Input, Text, Tooltip, toast } from "@medusajs/ui"
+import { Button, Heading, Input, Text, toast, Tooltip } from "@medusajs/ui"
 import { useForm } from "react-hook-form"
 import { useTranslation } from "react-i18next"
 import { z } from "zod"
@@ -189,6 +189,7 @@ export const TaxRegionProvinceCreateForm = ({
                             <PercentageInput
                               {...field}
                               value={value?.value}
+                              decimalsLimit={4}
                               onValueChange={(value, _name, values) =>
                                 onChange({
                                   value: value,
diff --git a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-create/components/tax-region-override-create-form/tax-region-tax-override-create.tsx b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-create/components/tax-region-override-create-form/tax-region-tax-override-create.tsx
index 7d9a043ca7..e33513266f 100644
--- a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-create/components/tax-region-override-create-form/tax-region-tax-override-create.tsx
+++ b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-create/components/tax-region-override-create-form/tax-region-tax-override-create.tsx
@@ -1,6 +1,7 @@
 import { zodResolver } from "@hookform/resolvers/zod"
 import {
   Button,
+  clx,
   Divider,
   Heading,
   Hint,
@@ -8,7 +9,6 @@ import {
   Label,
   Select,
   Text,
-  clx,
   toast,
 } from "@medusajs/ui"
 import { useFieldArray, useForm, useWatch } from "react-hook-form"
@@ -414,6 +414,7 @@ export const TaxRegionCreateTaxOverrideForm = ({
                               <PercentageInput
                                 {...field}
                                 placeholder="0.00"
+                                decimalsLimit={4}
                                 value={value?.value}
                                 onValueChange={(value, _name, values) =>
                                   onChange({
diff --git a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-edit/components/tax-region-tax-override-edit-form/tax-region-tax-override-edit-form.tsx b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-edit/components/tax-region-tax-override-edit-form/tax-region-tax-override-edit-form.tsx
index 7065100d0f..94e28fc126 100644
--- a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-edit/components/tax-region-tax-override-edit-form/tax-region-tax-override-edit-form.tsx
+++ b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-override-edit/components/tax-region-tax-override-edit-form/tax-region-tax-override-edit-form.tsx
@@ -3,6 +3,7 @@ import { MagnifyingGlass } from "@medusajs/icons"
 import { HttpTypes } from "@medusajs/types"
 import {
   Button,
+  clx,
   Divider,
   Heading,
   Hint,
@@ -10,7 +11,6 @@ import {
   Label,
   Select,
   Text,
-  clx,
   toast,
 } from "@medusajs/ui"
 import { useFieldArray, useForm, useWatch } from "react-hook-form"
@@ -414,6 +414,7 @@ export const TaxRegionTaxOverrideEditForm = ({
                       <PercentageInput
                         {...field}
                         value={value?.value}
+                        decimalsLimit={4}
                         onValueChange={(value, _name, values) =>
                           onChange({
                             value: value,
diff --git a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-create/components/tax-region-tax-rate-create-form/tax-region-tax-rate-create-form.tsx b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-create/components/tax-region-tax-rate-create-form/tax-region-tax-rate-create-form.tsx
index 1df9421617..7b5ed57641 100644
--- a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-create/components/tax-region-tax-rate-create-form/tax-region-tax-rate-create-form.tsx
+++ b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-create/components/tax-region-tax-rate-create-form/tax-region-tax-rate-create-form.tsx
@@ -119,6 +119,7 @@ export const TaxRegionTaxRateCreateForm = ({
                           <PercentageInput
                             {...field}
                             value={value?.value}
+                            decimalsLimit={4}
                             onValueChange={(value, _name, values) =>
                               onChange({
                                 value: value,
diff --git a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-edit/components/tax-region-tax-rate-edit-form/tax-region-tax-rate-edit-form.tsx b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-edit/components/tax-region-tax-rate-edit-form/tax-region-tax-rate-edit-form.tsx
index 7332db173d..b402095297 100644
--- a/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-edit/components/tax-region-tax-rate-edit-form/tax-region-tax-rate-edit-form.tsx
+++ b/packages/admin/dashboard/src/routes/tax-regions/tax-region-tax-rate-edit/components/tax-region-tax-rate-edit-form/tax-region-tax-rate-edit-form.tsx
@@ -117,6 +117,7 @@ export const TaxRegionTaxRateEditForm = ({
                       <PercentageInput
                         {...field}
                         value={value?.value}
+                        decimalsLimit={4}
                         onValueChange={(value, _name, values) =>
                           onChange({
                             value: value,