diff --git a/app/Http/Controllers/TaxRateController.php b/app/Http/Controllers/TaxRateController.php
index fb60fbc40bb9..a480d76126b5 100644
--- a/app/Http/Controllers/TaxRateController.php
+++ b/app/Http/Controllers/TaxRateController.php
@@ -125,7 +125,10 @@ class TaxRateController extends BaseController
      */
     public function create(CreateTaxRateRequest $request)
     {
-        $tax_rate = TaxRateFactory::create(auth()->user()->company()->id, auth()->user()->id);
+        /** @var \App\Models\User $user */
+        $user = auth()->user();
+
+        $tax_rate = TaxRateFactory::create($user->company()->id, auth()->user()->id);
 
         return $this->itemResponse($tax_rate);
     }
@@ -138,7 +141,10 @@ class TaxRateController extends BaseController
      */
     public function store(StoreTaxRateRequest $request)
     {
-        $tax_rate = TaxRateFactory::create(auth()->user()->company()->id, auth()->user()->id);
+        /** @var \App\Models\User $user */
+        $user = auth()->user();
+
+        $tax_rate = TaxRateFactory::create($user->company()->id, $user->id);
         $tax_rate->fill($request->all());
         $tax_rate->save();
 
@@ -417,15 +423,33 @@ class TaxRateController extends BaseController
      */
     public function bulk()
     {
-        $action = request()->input('action');
+        /** @var \App\Models\User $user */
+        $user = auth()->user();
 
+        $action = request()->input('action');
         $ids = request()->input('ids');
 
         $tax_rates = TaxRate::withTrashed()->find($this->transformKeys($ids));
 
-        $tax_rates->each(function ($tax_rate, $key) use ($action) {
-            if (auth()->user()->can('edit', $tax_rate)) {
+        $tax_rates->each(function ($tax_rate, $key) use ($action, $user) {
+            if ($user->can('edit', $tax_rate)) {
+
+                if(in_array($action, ['archive','delete'])) {
+                    $settings = $user->company()->settings;
+
+                    foreach(['tax_name1','tax_name2','tax_name3'] as $tax_name) {
+
+                        if($settings->{$tax_name} == $tax_rate->name) {
+                            $settings->{$tax_name} = '';
+                            $settings->{str_replace("name", "rate", $tax_name)} = '';
+                        }
+                    }
+
+                    $user->company()->saveSettings($settings, $user->company());
+                }
+
                 $this->base_repo->{$action}($tax_rate);
+
             }
         });
 
diff --git a/tests/Feature/TaxRateApiTest.php b/tests/Feature/TaxRateApiTest.php
index 13008615ba4e..e8175ea78948 100644
--- a/tests/Feature/TaxRateApiTest.php
+++ b/tests/Feature/TaxRateApiTest.php
@@ -11,13 +11,15 @@
 
 namespace Tests\Feature;
 
+use Tests\TestCase;
+use App\Models\Company;
+use App\Models\TaxRate;
+use Tests\MockAccountData;
 use App\Utils\Traits\MakesHash;
 use Illuminate\Database\Eloquent\Model;
-use Illuminate\Foundation\Testing\DatabaseTransactions;
 use Illuminate\Support\Facades\Session;
 use Illuminate\Validation\ValidationException;
-use Tests\MockAccountData;
-use Tests\TestCase;
+use Illuminate\Foundation\Testing\DatabaseTransactions;
 
 /**
  * @test
@@ -44,6 +46,44 @@ class TaxRateApiTest extends TestCase
         Model::reguard();
     }
 
+    public function testRemovingDefaultTaxes()
+    {
+        $t = TaxRate::factory()->create([
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'name' => 'nastytax1',
+            'rate' => 10,
+        ]);
+
+        $settings = $this->company->settings;
+        $settings->tax_rate1 = $t->rate;
+        $settings->tax_name1 = $t->name;
+
+        $this->company->saveSettings($settings, $this->company);
+
+        $this->company->fresh();
+
+        $this->assertEquals('nastytax1', $this->company->settings->tax_name1);
+        $this->assertEquals(10, $this->company->settings->tax_rate1);
+
+        $data = [
+            'ids' => [$this->encodePrimaryKey($t->id)],
+        ];
+
+        $response = $this->withHeaders([
+            'X-API-SECRET' => config('ninja.api_secret'),
+            'X-API-TOKEN' => $this->token,
+        ])->post('/api/v1/tax_rates/bulk?action=archive', $data);
+
+        $response->assertStatus(200);
+
+        $this->company = $this->company->fresh();
+
+        $this->assertEquals('', $this->company->getSetting('tax_name1'));
+        $this->assertEquals(0, $this->company->getSetting('tax_rate1'));
+
+    }
+
     public function testTaxRatesGetFilter()
     {
         $response = $this->withHeaders([