diff --git a/src/libs/ValidationUtils.ts b/src/libs/ValidationUtils.ts
index 3d5f23a84f74..5876ccf5d7d7 100644
--- a/src/libs/ValidationUtils.ts
+++ b/src/libs/ValidationUtils.ts
@@ -8,7 +8,7 @@ import type {OnyxCollection} from 'react-native-onyx';
 import type {FormInputErrors, FormOnyxKeys, FormOnyxValues, FormValue} from '@components/Form/types';
 import CONST from '@src/CONST';
 import type {OnyxFormKey} from '@src/ONYXKEYS';
-import type {Report} from '@src/types/onyx';
+import type {Report, TaxRates} from '@src/types/onyx';
 import * as CardUtils from './CardUtils';
 import DateUtils from './DateUtils';
 import type {MaybePhraseKey} from './Localize';
@@ -460,6 +460,21 @@ function prepareValues(values: ValuesType): ValuesType {
     return trimmedStringValues;
 }
 
+/**
+ * Validates the given value if it is correct percentage value.
+ */
+function isValidPercentage(value: string): boolean {
+    const parsedValue = Number(value);
+    return !Number.isNaN(parsedValue) && parsedValue >= 0 && parsedValue <= 100;
+}
+
+/**
+ * Validates the given value if it is correct tax name.
+ */
+function isExistingTaxName(value: string, taxRates: TaxRates): boolean {
+    return !!Object.values(taxRates).find((taxRate) => taxRate.name === value);
+}
+
 export {
     meetsMinimumAgeRequirement,
     meetsMaximumAgeRequirement,
@@ -498,4 +513,6 @@ export {
     validateDateTimeIsAtLeastOneMinuteInFuture,
     prepareValues,
     isValidPersonName,
+    isValidPercentage,
+    isExistingTaxName,
 };
diff --git a/src/pages/workspace/taxes/WorkspaceNewTaxPage.tsx b/src/pages/workspace/taxes/WorkspaceNewTaxPage.tsx
index cd226554c364..9586425b5a8c 100644
--- a/src/pages/workspace/taxes/WorkspaceNewTaxPage.tsx
+++ b/src/pages/workspace/taxes/WorkspaceNewTaxPage.tsx
@@ -38,12 +38,13 @@ function WorkspaceNewTaxPage({
         (values: FormOnyxValues<typeof ONYXKEYS.FORMS.WORKSPACE_NEW_TAX_FORM>): FormInputErrors<typeof ONYXKEYS.FORMS.WORKSPACE_NEW_TAX_FORM> => {
             const errors = ValidationUtils.getFieldRequiredErrors(values, [INPUT_IDS.VALUE, INPUT_IDS.NAME]);
 
-            const value = Number(values[INPUT_IDS.VALUE]);
-            if (value > 100 || value < 0) {
+            const value = values[INPUT_IDS.VALUE];
+            if (!ValidationUtils.isValidPercentage(value)) {
                 errors[INPUT_IDS.VALUE] = 'workspace.taxes.errors.valuePercentageRange';
             }
 
-            if (Object.values(policy?.taxRates?.taxes ?? {}).find((tax) => tax.name === values[INPUT_IDS.NAME])) {
+            const name = values[INPUT_IDS.NAME];
+            if (policy?.taxRates?.taxes && ValidationUtils.isExistingTaxName(name, policy.taxRates.taxes)) {
                 errors[INPUT_IDS.NAME] = 'workspace.taxes.errors.taxRatealreadyExists';
             }