Xero (ASX:XRO) Tax Rate %: 73.38% (As of Mar. 2026)

What is Xero Tax Rate %?

Xero ASX:XRO +1.81% 81 Tax Rate % is 73.38% as of Mar. 2026. GuruFocus rates ASX:XRO with a GF Score™ of 81/100 and a GF Value™ of A$196.50 (Possible Value Trap). The stock has 7 warning signs investors should review.

Tax Rate % is calculated as Tax Expense divided by its Pre-Tax Income. Xero's Tax Expense for the six months ended in Mar. 2026 was A$59 Mil. Xero's Pre-Tax Income for the six months ended in Mar. 2026 was A$81 Mil. Therefore, Xero's Tax Rate % for the quarter that ended in Mar. 2026 was 73.38%.

Xero Tax Rate % Related Terms

Xero Tax Rate % Historical Data

* Premium members only.

The historical data trend for Xero's Tax Rate % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Xero Tax Rate % Chart

Xero Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Tax Rate %

Get a 7-Day Free Trial

485.75

-50.02

33.32

37.18

50.72

Xero Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
Tax Rate %	Get a 7-Day Free Trial															31.09	38.53	36.16	41.70	73.38

81GF Score

Xero Ltd ASX:XRO

Tax Rate % is just one metric. See GF Score™, valuation, warning signs, and more.

View Full Analysis

Xero Tax Rate % Calculation

Tax Rate % is the ratio of tax expense divided by pretax income, usually presented in percent.

Xero's Tax Rate % for the fiscal year that ended in Mar. 2026 is calculated as

Tax Rate %	=	Tax Expense (A: Mar. 2026 )	/	Pre-Tax Income (A: Mar. 2026 )
	=	143.692	/	283.302
	=	50.72 %

Xero's Tax Rate % for the quarter that ended in Mar. 2026 is calculated as

Tax Rate %	=	Tax Expense (Q: Mar. 2026 )	/	Pre-Tax Income (Q: Mar. 2026 )
	=	59.215	/	80.697
	=	73.38 %

Frequently Asked Questions Learn more about Tax Rate % →

What does a Tax Rate % of 73.38% mean?

Xero (ASX:XRO) has a Tax Rate % of 73.38% as of Mar. 2026.

Is Xero's Tax Rate % too high?

Xero's current Tax Rate % is 73.38%. Overall, Xero has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.

How does Xero's Tax Rate % compare to UBER and SHOP?

Xero's Tax Rate % of 73.38% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Tax Rate % for a Software company?

A good Tax Rate % depends on the Software industry context. However, Tax Rate % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Tax Rate % mean?

A high Tax Rate % can signal that a stock is expensive relative to its fundamentals. Xero's current Tax Rate % is 73.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Xero stock overvalued right now?

Based on GuruFocus' analysis, Xero (ASX:XRO) is currently considered Possible Value Trap. The stock's GF Value™ is A$196.50, compared to a current price of A$73.56 — trading 62.6% below its estimated fair value. The current Tax Rate % is 73.38%. Xero's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Tax Rate % calculated?

Tax Rate % is calculated from a company's financial statements. For Xero (ASX:XRO), the current Tax Rate % is 73.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Xero (ASX:XRO) Overvalued in 2026?

Based on GuruFocus' analysis, Xero stock appears to be undervalued. The current stock price of A$73.56 is trading 62.6% below its estimated GF Value™ of A$196.50. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

Tax Rate %: 73.38%
GF Value™: A$196.50 vs. price of A$73.56 (62.6% below fair value)
GF Score™: 81/100 with 7 warning signs

No single metric tells the full story. See the ASX:XRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Xero Business Description

Industry Technology Software

Comparable Companies ASX:WTC ASX:TNE ASX:NWL ASX:PXA ASX:IRE ASX:SDR ASX:OCL ASX:BVS ASX:HSN ASX:C79 XTER:SAP UBER SHOP CRM CDNS NOW ADP SNOW DDOG ADBE

Other Exchanges XROLF:USA 0XE:Germany

Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011

Website https://www.xero.com

Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.

81GF Score

Get the complete analysis for ASX:XRO

Tax Rate % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$73.56

Price

A$196.50

GF Value

View ASX:XRO Analysis

See Tax Rate % data for all stocks →