diff --git a/packages/tax/integration-tests/__tests__/index.spec.ts b/packages/tax/integration-tests/__tests__/index.spec.ts
index 814b1257c4..cd28f2f9ae 100644
--- a/packages/tax/integration-tests/__tests__/index.spec.ts
+++ b/packages/tax/integration-tests/__tests__/index.spec.ts
@@ -8,6 +8,73 @@ moduleIntegrationTestRunner({
   moduleName: Modules.TAX,
   testSuite: ({ service }: SuiteOptions<ITaxModuleService>) => {
     describe("TaxModuleService", function () {
+      it("should create tax rates and update them", async () => {
+        const region = await service.createTaxRegions({
+          country_code: "US",
+          default_tax_rate: {
+            name: "Test Rate",
+            rate: 0.2,
+          },
+        })
+
+        const rate = await service.create({
+          tax_region_id: region.id,
+          name: "Shipping Rate",
+          code: "test",
+          rate: 8.23,
+        })
+
+        const updatedRate = await service.update(rate.id, {
+          name: "Updated Rate",
+          code: "TEST",
+          rate: 8.25,
+        })
+
+        expect(updatedRate).toEqual(
+          expect.objectContaining({
+            tax_region_id: region.id,
+            rate: 8.25,
+            name: "Updated Rate",
+            code: "TEST",
+            is_default: false,
+          })
+        )
+
+        const updatedDefaultRate = await service.update(
+          { tax_region_id: region.id, is_default: true },
+          { rate: 2 }
+        )
+
+        expect(updatedDefaultRate).toEqual([
+          expect.objectContaining({
+            tax_region_id: region.id,
+            rate: 2,
+            name: "Test Rate",
+            code: null,
+            is_default: true,
+          }),
+        ])
+
+        const rates = await service.list()
+        expect(rates).toEqual(
+          expect.arrayContaining([
+            expect.objectContaining({
+              tax_region_id: region.id,
+              rate: 2,
+              name: "Test Rate",
+              is_default: true,
+            }),
+            expect.objectContaining({
+              tax_region_id: region.id,
+              rate: 8.25,
+              name: "Updated Rate",
+              code: "TEST",
+              is_default: false,
+            }),
+          ])
+        )
+      })
+
       it("should create a tax region", async () => {
         const region = await service.createTaxRegions({
           country_code: "US",
diff --git a/packages/tax/src/services/tax-module-service.ts b/packages/tax/src/services/tax-module-service.ts
index 7e5995130b..7f643db9d6 100644
--- a/packages/tax/src/services/tax-module-service.ts
+++ b/packages/tax/src/services/tax-module-service.ts
@@ -15,6 +15,7 @@ import {
   MedusaError,
   ModulesSdkUtils,
   isDefined,
+  isString,
   promiseAll,
 } from "@medusajs/utils"
 import { TaxRate, TaxRegion, TaxRateRule } from "@models"
@@ -145,6 +146,49 @@ export default class TaxModuleService<
     })
   }
 
+  async update(
+    id: string,
+    data: TaxTypes.UpdateTaxRateDTO,
+    sharedContext?: Context
+  ): Promise<TaxTypes.TaxRateDTO>
+  async update(
+    ids: string[],
+    data: TaxTypes.UpdateTaxRateDTO,
+    sharedContext?: Context
+  ): Promise<TaxTypes.TaxRateDTO[]>
+  async update(
+    selector: TaxTypes.FilterableTaxRateProps,
+    data: TaxTypes.UpdateTaxRateDTO,
+    sharedContext?: Context
+  ): Promise<TaxTypes.TaxRateDTO[]>
+
+  @InjectManager("baseRepository_")
+  async update(
+    selector: string | string[] | TaxTypes.FilterableTaxRateProps,
+    data: TaxTypes.UpdateTaxRateDTO,
+    @MedusaContext() sharedContext: Context = {}
+  ): Promise<TaxTypes.TaxRateDTO | TaxTypes.TaxRateDTO[]> {
+    const rates = await this.update_(selector, data, sharedContext)
+    const serialized = await this.baseRepository_.serialize<
+      TaxTypes.TaxRateDTO[]
+    >(rates, { populate: true })
+    return isString(selector) ? serialized[0] : serialized
+  }
+
+  @InjectTransactionManager("baseRepository_")
+  protected async update_(
+    idOrSelector: string | string[] | TaxTypes.FilterableTaxRateProps,
+    data: TaxTypes.UpdateTaxRateDTO,
+    @MedusaContext() sharedContext: Context = {}
+  ) {
+    const selector =
+      Array.isArray(idOrSelector) || isString(idOrSelector)
+        ? { id: idOrSelector }
+        : idOrSelector
+
+    return await this.taxRateService_.update({ selector, data }, sharedContext)
+  }
+
   createTaxRegions(
     data: TaxTypes.CreateTaxRegionDTO,
     sharedContext?: Context
diff --git a/packages/types/src/tax/mutations.ts b/packages/types/src/tax/mutations.ts
index 476209b4f8..9414e8eebd 100644
--- a/packages/types/src/tax/mutations.ts
+++ b/packages/types/src/tax/mutations.ts
@@ -9,6 +9,15 @@ export interface CreateTaxRateDTO {
   metadata?: Record<string, unknown>
 }
 
+export interface UpdateTaxRateDTO {
+  rate?: number | null
+  code?: string | null
+  name?: string
+  is_default?: boolean
+  created_by?: string
+  metadata?: Record<string, unknown>
+}
+
 export interface CreateTaxRegionDTO {
   country_code: string
   province_code?: string | null
diff --git a/packages/types/src/tax/service.ts b/packages/types/src/tax/service.ts
index 5f639a4b7c..aa8e925067 100644
--- a/packages/types/src/tax/service.ts
+++ b/packages/types/src/tax/service.ts
@@ -19,6 +19,7 @@ import {
   CreateTaxRateRuleDTO,
   CreateTaxRateDTO,
   CreateTaxRegionDTO,
+  UpdateTaxRateDTO,
 } from "./mutations"
 
 export interface ITaxModuleService extends IModuleService {
@@ -46,6 +47,22 @@ export interface ITaxModuleService extends IModuleService {
   ): Promise<TaxRateDTO[]>
   create(data: CreateTaxRateDTO, sharedContext?: Context): Promise<TaxRateDTO>
 
+  update(
+    taxRateId: string,
+    data: UpdateTaxRateDTO,
+    sharedContext?: Context
+  ): Promise<TaxRateDTO>
+  update(
+    taxRateIds: string[],
+    data: UpdateTaxRateDTO,
+    sharedContext?: Context
+  ): Promise<TaxRateDTO[]>
+  update(
+    selector: FilterableTaxRateProps,
+    data: UpdateTaxRateDTO,
+    sharedContext?: Context
+  ): Promise<TaxRateDTO[]>
+
   delete(taxRateIds: string[], sharedContext?: Context): Promise<void>
   delete(taxRateId: string, sharedContext?: Context): Promise<void>