diff --git a/tests/e2e-tests/specs/wp-admin/wp-admin-settings-tax.test.js b/tests/e2e-tests/specs/wp-admin/wp-admin-settings-tax.test.js
new file mode 100644
index 00000000000..f2384a7db55
--- /dev/null
+++ b/tests/e2e-tests/specs/wp-admin/wp-admin-settings-tax.test.js
@@ -0,0 +1,175 @@
+/**
+ * @format
+ */
+
+/**
+ * External dependencies
+ */
+import { activatePlugin } from '@wordpress/e2e-test-utils';
+
+/**
+ * Internal dependencies
+ */
+import { StoreOwnerFlow } from '../../utils/flows';
+import {
+	clearAndFillInput,
+	setCheckbox,
+	settingsPageSaveChanges,
+	uiUnblocked,
+	verifyCheckboxIsSet,
+	verifyValueOfInputField
+} from "../../utils";
+
+describe( 'WooCommerce Tax Settings', () => {
+	beforeAll( async () => {
+		await activatePlugin( 'woocommerce' );
+	} );
+
+	it( 'can enable tax calculation', async() => {
+		// Go to general settings page
+		await StoreOwnerFlow.openSettings( 'general' );
+
+		// Make sure the general tab is active
+		await expect( page ).toMatchElement( 'a.nav-tab-active', { text: 'General' } );
+
+		// Enable tax calculation
+		await setCheckbox( 'input[name="woocommerce_calc_taxes"]' );
+		await settingsPageSaveChanges();
+
+		// Verify that settings have been saved
+		await Promise.all( [
+			expect( page ).toMatchElement( '#message', { text: 'Your settings have been saved.' } ),
+			verifyCheckboxIsSet( '#woocommerce_calc_taxes' ),
+		] );
+
+		// Verify that tax settings are now present
+		await expect( page ).toMatchElement( 'a.nav-tab', { text: 'Tax' } );
+	} );
+
+	it( 'can set tax options', async () => {
+		// Go to tax settings page
+		await StoreOwnerFlow.openSettings( 'tax' );
+
+		// Make sure the tax tab is active
+		await expect( page ).toMatchElement( 'a.nav-tab-active', { text: 'Tax' } );
+
+		// Prices exclusive of tax
+		await expect( page ).toClick( 'input[name="woocommerce_prices_include_tax"][value="no"]' );
+		// Tax based on customer shipping address
+		await expect( page ).toSelect( '#woocommerce_tax_based_on', 'Customer shipping address' );
+		// Standard tax class for shipping
+		await expect( page ).toSelect( '#woocommerce_shipping_tax_class', 'Standard' );
+		// Leave rounding unchecked (no-op)
+		// Display prices excluding tax
+		await expect( page ).toSelect( '#woocommerce_tax_display_shop', 'Excluding tax' );
+		// Display prices including tax in cart and at checkout
+		await expect( page ).toSelect( '#woocommerce_tax_display_cart', 'Including tax' );
+		// Display a single tax total
+		await expect( page ).toSelect( '#woocommerce_tax_total_display', 'As a single total' );
+
+		await settingsPageSaveChanges();
+
+		// Verify that settings have been saved
+		await Promise.all( [
+			expect( page ).toMatchElement( '#message', { text: 'Your settings have been saved.' } ),
+			verifyValueOfInputField( 'input[name="woocommerce_prices_include_tax"][value="no"]', 'no' ),
+			expect( page ).toMatchElement( '#woocommerce_tax_based_on', { text: 'Customer shipping address' } ),
+			expect( page ).toMatchElement( '#woocommerce_shipping_tax_class', { text: 'Standard' } ),
+			expect( page ).toMatchElement( '#woocommerce_tax_display_shop', { text: 'Excluding tax' } ),
+			expect( page ).toMatchElement( '#woocommerce_tax_display_cart', { text: 'Including tax' } ),
+			expect( page ).toMatchElement( '#woocommerce_tax_total_display', { text: 'As a single total' } ),
+		] );
+	} );
+
+	it( 'can add tax classes', async () => {
+		// Go to tax settings page
+		await StoreOwnerFlow.openSettings( 'tax' );
+
+		// Make sure the tax tab is active
+		await expect( page ).toMatchElement( 'a.nav-tab-active', { text: 'Tax' } );
+
+		// Remove additional tax classes
+		await clearAndFillInput( '#woocommerce_tax_classes', '' );
+		await settingsPageSaveChanges();
+
+		// Verify that settings have been saved
+		await Promise.all( [
+			expect( page ).toMatchElement( '#message', { text: 'Your settings have been saved.' } ),
+			expect( page ).toMatchElement( '#woocommerce_tax_classes', { text: '' } ),
+		] );
+
+		// Add a "fancy" tax class
+		await clearAndFillInput( '#woocommerce_tax_classes', 'Fancy' );
+		await settingsPageSaveChanges();
+
+		// Verify that settings have been saved
+		await Promise.all( [
+			expect( page ).toMatchElement( '#message', { text: 'Your settings have been saved.' } ),
+			expect( page ).toMatchElement( 'ul.subsubsub > li > a', { text: 'Fancy rates' } ),
+		] );
+	} );
+
+	it( 'can set rate settings', async () => {
+		// Go to "fancy" rates tax settings page
+		await StoreOwnerFlow.openSettings( 'tax', 'fancy' );
+
+		// Make sure the tax tab is active, with the "fancy" subsection
+		await expect( page ).toMatchElement( 'a.nav-tab-active', { text: 'Tax' } );
+		await expect( page ).toMatchElement( 'ul.subsubsub > li > a.current', { text: 'Fancy rates' } );
+
+		// Create a state tax
+		await expect( page ).toClick( '.wc_tax_rates a.insert' );
+		await expect( page ).toFill( 'input[name^="tax_rate_country[new-0"]', 'US' );
+		await expect( page ).toFill( 'input[name^="tax_rate_state[new-0"]', 'CA' );
+		await expect( page ).toFill( 'input[name^="tax_rate[new-0"]', '7.5' );
+		await expect( page ).toFill( 'input[name^="tax_rate_name[new-0"]', 'CA State Tax' );
+
+		// Create a federal tax
+		await expect( page ).toClick( '.wc_tax_rates a.insert' );
+		await expect( page ).toFill( 'input[name^="tax_rate_country[new-1"]', 'US' );
+		await expect( page ).toFill( 'input[name^="tax_rate[new-1"]', '1.5' );
+		await expect( page ).toFill( 'input[name^="tax_rate_priority[new-1"]', '2' );
+		await expect( page ).toFill( 'input[name^="tax_rate_name[new-1"]', 'Federal Tax' );
+		await expect( page ).toClick( 'input[name^="tax_rate_shipping[new-1"]' );
+
+		// Save changes (AJAX here)
+		await expect( page ).toClick( 'button.woocommerce-save-button' );
+		await uiUnblocked();
+
+		// Verify 2 tax rates
+		expect( await page.$$( '#rates tr' ) ).toHaveLength( 2 );
+
+		// Delete federal rate
+		await expect( page ).toClick( '#rates tr:nth-child(2) input' );
+		await expect( page ).toClick( '.wc_tax_rates a.remove_tax_rates' );
+
+		// Save changes (AJAX here)
+		await expect( page ).toClick( 'button.woocommerce-save-button' );
+		await uiUnblocked();
+
+		// Verify 1 rate
+		expect( await page.$$( '#rates tr' ) ).toHaveLength( 1 );
+		await expect( page ).toMatchElement(
+			'#rates tr:first-of-type input[name^="tax_rate_state"][value="CA"]'
+		);
+	} );
+
+	it( 'can remove tax classes', async () => {
+		// Go to tax settings page
+		await StoreOwnerFlow.openSettings( 'tax' );
+
+		// Make sure the tax tab is active
+		await expect( page ).toMatchElement( 'a.nav-tab-active', { text: 'Tax' } );
+
+		// Remove "fancy" tax class
+		await clearAndFillInput( '#woocommerce_tax_classes', ' ' );
+		await settingsPageSaveChanges();
+
+		// Verify that settings have been saved
+		await Promise.all( [
+			expect( page ).toMatchElement( '#message', { text: 'Your settings have been saved.' } ),
+			expect( page ).not.toMatchElement( 'ul.subsubsub > li > a', { text: 'Fancy rates' } ),
+		] );
+		await page.waitFor( 10000 );
+	} );
+} );
diff --git a/tests/e2e-tests/utils/flows.js b/tests/e2e-tests/utils/flows.js
index 535d3371e00..fc5d06720f6 100644
--- a/tests/e2e-tests/utils/flows.js
+++ b/tests/e2e-tests/utils/flows.js
@@ -5,6 +5,7 @@
 const baseUrl = process.env.WP_BASE_URL;
 
 const WP_ADMIN_NEW_PRODUCT = baseUrl + '/wp-admin/post-new.php?post_type=product';
+const WP_ADMIN_WC_SETTINGS = baseUrl + '/wp-admin/admin.php?page=wc-settings&tab=';
 
 const StoreOwnerFlow = {
 	openNewProduct: async () => {
@@ -12,6 +13,18 @@ const StoreOwnerFlow = {
 			waitUntil: 'networkidle0',
 		} );
 	},
+
+	openSettings: async ( tab, section = null ) => {
+		let settingsUrl = WP_ADMIN_WC_SETTINGS + tab;
+
+		if ( section ) {
+			settingsUrl += `&section=${ section }`;
+		}
+
+		await page.goto( settingsUrl, {
+			waitUntil: 'networkidle0',
+		} );
+	},
 };
 
 export { StoreOwnerFlow };
diff --git a/tests/e2e-tests/utils/index.js b/tests/e2e-tests/utils/index.js
index 7a5a3d64e29..d79b004b789 100644
--- a/tests/e2e-tests/utils/index.js
+++ b/tests/e2e-tests/utils/index.js
@@ -1,8 +1,25 @@
+/**
+ * External dependencies
+ */
+import { pressKeyWithModifier } from '@wordpress/e2e-test-utils';
+
 /**
  * Internal dependencies
  */
 const flows = require( './flows' );
 
+/**
+ * Perform a "select all" and then fill a input.
+ *
+ * @param {string} selector
+ * @param {string} value
+ */
+const clearAndFillInput = async ( selector, value ) => {
+	await page.focus( selector );
+	await pressKeyWithModifier( 'primary', 'a' );
+	await page.type( selector, value );
+};
+
 /**
  * Click a tab (on post type edit screen).
  *
@@ -12,6 +29,45 @@ const clickTab = async ( tabName ) => {
 	await expect( page ).toClick( '.wc-tabs > li > a', { text: tabName } );
 };
 
+/**
+ * Save changes on a WooCommerce settings page.
+ */
+const settingsPageSaveChanges = async () => {
+	await page.focus( 'button.woocommerce-save-button' );
+	await Promise.all( [
+		page.waitForNavigation( { waitUntil: 'networkidle0' } ),
+		page.click( 'button.woocommerce-save-button' ),
+	] );
+};
+
+/**
+ * Set checkbox.
+ *
+ * @param {string} selector
+ */
+const setCheckbox = async( selector ) => {
+	await page.focus( selector );
+	const checkbox = await page.$( selector );
+	const checkboxStatus = ( await ( await checkbox.getProperty( 'checked' ) ).jsonValue() );
+	if ( checkboxStatus !== true ) {
+		await page.click( selector );
+	}
+};
+
+/**
+ * Unset checkbox.
+ *
+ * @param {string} selector
+ */
+const unsetCheckbox = async( selector ) => {
+	await page.focus( selector );
+	const checkbox = await page.$( selector );
+	const checkboxStatus = ( await ( await checkbox.getProperty( 'checked' ) ).jsonValue() );
+	if ( checkboxStatus === true ) {
+		await page.click( selector );
+	}
+};
+
 /**
  * Wait for UI blocking to end.
  */
@@ -19,8 +75,52 @@ const uiUnblocked = async () => {
 	await page.waitForFunction( () => ! Boolean( document.querySelector( '.blockUI' ) ) );
 };
 
+/**
+ * Verify that checkbox is set.
+ *
+ * @param {string} selector Selector of the checkbox that needs to be verified.
+ */
+const verifyCheckboxIsSet = async( selector ) => {
+	await page.focus( selector );
+	const checkbox = await page.$( selector );
+	const checkboxStatus = ( await ( await checkbox.getProperty( 'checked' ) ).jsonValue() );
+	await expect( checkboxStatus ).toBe( true );
+};
+
+/**
+ * Verify that checkbox is unset.
+ *
+ * @param {string} selector Selector of the checkbox that needs to be verified.
+ */
+const verifyCheckboxIsUnset = async( selector ) => {
+	await page.focus( selector );
+	const checkbox = await page.$( selector );
+	const checkboxStatus = ( await ( await checkbox.getProperty( 'checked' ) ).jsonValue() );
+	await expect( checkboxStatus ).not.toBe( true );
+};
+
+/**
+ * Verify the value of input field once it was saved (can be used for radio buttons verification as well).
+ *
+ * @param {string} selector Selector of the input field that needs to be verified.
+ * @param {string} value Value of the input field that needs to be verified.
+ */
+const verifyValueOfInputField = async( selector, value ) => {
+	await page.focus( selector );
+	const field = await page.$( selector );
+	const fieldValue = ( await ( await field.getProperty( 'value' ) ).jsonValue() );
+	await expect( fieldValue ).toBe( value );
+};
+
 module.exports = {
 	...flows,
+	clearAndFillInput,
 	clickTab,
+	settingsPageSaveChanges,
+	setCheckbox,
+	unsetCheckbox,
 	uiUnblocked,
+	verifyCheckboxIsSet,
+	verifyCheckboxIsUnset,
+	verifyValueOfInputField,
 };