From 996e18e9ce5993eebf65ad02551d6fcde87a8b07 Mon Sep 17 00:00:00 2001
From: dukenv0307 <dukenv0307@gmail.com>
Date: Tue, 23 Jun 2026 16:19:21 +0700
Subject: [PATCH 1/2] update previousTaxCode in setPolicyTaxCode successData

---
 src/libs/actions/TaxRate.ts | 1 +
 1 file changed, 1 insertion(+)

diff --git a/src/libs/actions/TaxRate.ts b/src/libs/actions/TaxRate.ts
index 3a6373108e95..8d324a9f884d 100644
--- a/src/libs/actions/TaxRate.ts
+++ b/src/libs/actions/TaxRate.ts
@@ -608,6 +608,7 @@ function setPolicyTaxCode(
                                 pendingFields: {...originalTaxRate.pendingFields, code: null},
                                 pendingAction: null,
                                 errorFields: {code: null},
+                                previousTaxCode: oldTaxCode,
                             },
                         },
                     },

From 3b4b3ca00815840de5e9f3b7d39dc657933f7aff Mon Sep 17 00:00:00 2001
From: dukenv0307 <dukenv0307@gmail.com>
Date: Sun, 28 Jun 2026 18:24:43 +0700
Subject: [PATCH 2/2] use optimisticPreviousTaxCode in getCurrentTaxID

---
 src/libs/PolicyUtils.ts     | 2 +-
 src/libs/actions/TaxRate.ts | 2 ++
 src/types/onyx/Policy.ts    | 3 +++
 3 files changed, 6 insertions(+), 1 deletion(-)

diff --git a/src/libs/PolicyUtils.ts b/src/libs/PolicyUtils.ts
index 2e6789fc98fa..3159b732e705 100644
--- a/src/libs/PolicyUtils.ts
+++ b/src/libs/PolicyUtils.ts
@@ -2286,7 +2286,7 @@ function hasOnlyPersonalPolicies(policies: OnyxCollection<Policy>) {
 }
 
 function getCurrentTaxID(policy: OnyxEntry<Policy>, taxID: string): string | undefined {
-    return Object.keys(policy?.taxRates?.taxes ?? {}).find((taxIDKey) => policy?.taxRates?.taxes?.[taxIDKey].previousTaxCode === taxID || taxIDKey === taxID);
+    return Object.keys(policy?.taxRates?.taxes ?? {}).find((taxIDKey) => policy?.taxRates?.taxes?.[taxIDKey].optimisticPreviousTaxCode === taxID || taxIDKey === taxID);
 }
 
 function getTagApproverRule(policy: OnyxEntry<Policy>, tagName: string) {
diff --git a/src/libs/actions/TaxRate.ts b/src/libs/actions/TaxRate.ts
index 8d324a9f884d..469842f32cb8 100644
--- a/src/libs/actions/TaxRate.ts
+++ b/src/libs/actions/TaxRate.ts
@@ -585,6 +585,7 @@ function setPolicyTaxCode(
                                 pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
                                 errorFields: {code: null},
                                 previousTaxCode: oldTaxCode,
+                                optimisticPreviousTaxCode: oldTaxCode,
                             },
                         },
                     },
@@ -609,6 +610,7 @@ function setPolicyTaxCode(
                                 pendingAction: null,
                                 errorFields: {code: null},
                                 previousTaxCode: oldTaxCode,
+                                optimisticPreviousTaxCode: null,
                             },
                         },
                     },
diff --git a/src/types/onyx/Policy.ts b/src/types/onyx/Policy.ts
index 7473b11e5d4c..ed897a84d00f 100644
--- a/src/types/onyx/Policy.ts
+++ b/src/types/onyx/Policy.ts
@@ -244,6 +244,9 @@ type TaxRate = OnyxCommon.OnyxValueWithOfflineFeedback<{
     /** The old tax code of the tax rate when we edit the tax code */
     previousTaxCode?: string;
 
+    /** The old tax code kept only while a tax code edit is in flight, used to resolve the rate from the old code; cleared once the API resolves */
+    optimisticPreviousTaxCode?: string;
+
     /** An error message to display to the user */
     errors?: OnyxCommon.Errors;