diff --git a/database/migrations/2025_07_24_092819_create_tax_classes_table.php b/database/migrations/2025_07_24_092819_create_tax_classes_table.php
new file mode 100644
index 0000000..cc273fd
--- /dev/null
+++ b/database/migrations/2025_07_24_092819_create_tax_classes_table.php
@@ -0,0 +1,36 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    public function up(): void
+    {
+        Schema::create('pim_tax_classes', function (Blueprint $table) {
+            $table->id();
+
+            if (config('eclipse-catalogue.tenancy.model')) {
+                $tenantClass = config('eclipse-catalogue.tenancy.model');
+                /** @var \Illuminate\Database\Eloquent\Model $tenant */
+                $tenant = new $tenantClass;
+                $table->foreignId(config('eclipse-catalogue.tenancy.foreign_key'))
+                    ->constrained($tenant->getTable(), $tenant->getKeyName())
+                    ->cascadeOnUpdate()
+                    ->cascadeOnDelete();
+            }
+
+            $table->decimal('rate', total: 5);
+            $table->boolean('is_default')
+                ->default(false);
+            $table->timestamps();
+            $table->softDeletes();
+        });
+    }
+
+    public function down(): void
+    {
+        Schema::dropIfExists('pim_tax_classes');
+    }
+};
diff --git a/database/migrations/2025_07_28_091321_add_name_and_description_to_tax_classes_table.php b/database/migrations/2025_07_28_091321_add_name_and_description_to_tax_classes_table.php
new file mode 100644
index 0000000..2fe5e37
--- /dev/null
+++ b/database/migrations/2025_07_28_091321_add_name_and_description_to_tax_classes_table.php
@@ -0,0 +1,23 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    public function up(): void
+    {
+        Schema::table('pim_tax_classes', function (Blueprint $table) {
+            $table->string('name')->after('id');
+            $table->text('description')->nullable()->after('name');
+        });
+    }
+
+    public function down(): void
+    {
+        Schema::table('pim_tax_classes', function (Blueprint $table) {
+            $table->dropColumn(['name', 'description']);
+        });
+    }
+};
diff --git a/resources/lang/en/tax-class.php b/resources/lang/en/tax-class.php
new file mode 100644
index 0000000..a86a49b
--- /dev/null
+++ b/resources/lang/en/tax-class.php
@@ -0,0 +1,16 @@
+<?php
+
+return [
+    'singular' => 'Tax class',
+    'plural' => 'Tax classes',
+    'fields' => [
+        'name' => 'Name',
+        'description' => 'Description',
+        'rate' => 'Rate (%)',
+        'is_default' => 'Default class',
+    ],
+    'messages' => [
+        'default_class_help' => 'Only one class can be set as default',
+        'cannot_delete_default' => 'Cannot delete the default tax class.',
+    ],
+];
diff --git a/resources/lang/sl/tax-class.php b/resources/lang/sl/tax-class.php
new file mode 100644
index 0000000..ad84381
--- /dev/null
+++ b/resources/lang/sl/tax-class.php
@@ -0,0 +1,16 @@
+<?php
+
+return [
+    'singular' => 'Davčni razred',
+    'plural' => 'Davčni razredi',
+    'fields' => [
+        'name' => 'Ime',
+        'description' => 'Opis',
+        'rate' => 'Stopnja (%)',
+        'is_default' => 'Privzeti razred',
+    ],
+    'messages' => [
+        'default_class_help' => 'Samo en razred je lahko nastavljen kot privzet',
+        'cannot_delete_default' => 'Privzetega davčnega razreda ni mogoče izbrisati.',
+    ],
+];
diff --git a/src/Filament/Resources/TaxClassResource.php b/src/Filament/Resources/TaxClassResource.php
new file mode 100644
index 0000000..7fed21a
--- /dev/null
+++ b/src/Filament/Resources/TaxClassResource.php
@@ -0,0 +1,182 @@
+<?php
+
+namespace Eclipse\Catalogue\Filament\Resources;
+
+use BezhanSalleh\FilamentShield\Contracts\HasShieldPermissions;
+use Eclipse\Catalogue\Filament\Resources\TaxClassResource\Pages;
+use Eclipse\Catalogue\Models\TaxClass;
+use Filament\Facades\Filament;
+use Filament\Forms\Components\Placeholder;
+use Filament\Forms\Components\Textarea;
+use Filament\Forms\Components\TextInput;
+use Filament\Forms\Components\Toggle;
+use Filament\Forms\Form;
+use Filament\Resources\Resource;
+use Filament\Tables\Actions\DeleteAction;
+use Filament\Tables\Actions\EditAction;
+use Filament\Tables\Actions\ForceDeleteAction;
+use Filament\Tables\Actions\RestoreAction;
+use Filament\Tables\Columns\IconColumn;
+use Filament\Tables\Columns\TextColumn;
+use Filament\Tables\Filters\TrashedFilter;
+use Filament\Tables\Table;
+use Illuminate\Database\Eloquent\Builder;
+use Illuminate\Database\Eloquent\SoftDeletingScope;
+
+class TaxClassResource extends Resource implements HasShieldPermissions
+{
+    protected static ?string $model = TaxClass::class;
+
+    protected static ?string $slug = 'tax-classes';
+
+    protected static ?string $navigationIcon = 'heroicon-o-calculator';
+
+    protected static ?string $navigationGroup = 'Catalogue';
+
+    protected static ?string $recordTitleAttribute = 'name';
+
+    protected static bool $isScopedToTenant = true;
+
+    protected static ?string $tenantOwnershipRelationshipName = 'tenant';
+
+    public static function getModelLabel(): string
+    {
+        return __('eclipse-catalogue::tax-class.singular');
+    }
+
+    public static function getPluralModelLabel(): string
+    {
+        return __('eclipse-catalogue::tax-class.plural');
+    }
+
+    public static function form(Form $form): Form
+    {
+        return $form
+            ->schema([
+                TextInput::make('name')
+                    ->label(__('eclipse-catalogue::tax-class.fields.name'))
+                    ->required()
+                    ->maxLength(255)
+                    ->unique(
+                        table: 'pim_tax_classes',
+                        column: 'name',
+                        ignoreRecord: true,
+                        modifyRuleUsing: function ($rule) {
+                            // Add tenant scope to unique validation
+                            $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+                            $tenantId = Filament::getTenant()?->id;
+                            if ($tenantFK && $tenantId) {
+                                $rule->where($tenantFK, $tenantId);
+                            }
+
+                            return $rule;
+                        }
+                    ),
+
+                Textarea::make('description')
+                    ->label(__('eclipse-catalogue::tax-class.fields.description'))
+                    ->rows(3)
+                    ->maxLength(65535),
+
+                TextInput::make('rate')
+                    ->label(__('eclipse-catalogue::tax-class.fields.rate'))
+                    ->required()
+                    ->numeric()
+                    ->minValue(0)
+                    ->maxValue(100)
+                    ->step(0.01)
+                    ->suffix('%'),
+
+                Toggle::make('is_default')
+                    ->label(__('eclipse-catalogue::tax-class.fields.is_default'))
+                    ->helperText(__('eclipse-catalogue::tax-class.messages.default_class_help')),
+
+                Placeholder::make('created_at')
+                    ->label('Created Date')
+                    ->content(fn (?TaxClass $record): string => $record?->created_at?->diffForHumans() ?? '-'),
+
+                Placeholder::make('updated_at')
+                    ->label('Last Modified Date')
+                    ->content(fn (?TaxClass $record): string => $record?->updated_at?->diffForHumans() ?? '-'),
+            ]);
+    }
+
+    public static function table(Table $table): Table
+    {
+        return $table
+            ->columns([
+                TextColumn::make('id')
+                    ->sortable(),
+
+                TextColumn::make('name')
+                    ->searchable()
+                    ->sortable(),
+
+                TextColumn::make('description')
+                    ->searchable()
+                    ->limit(50)
+                    ->toggleable(isToggledHiddenByDefault: true),
+
+                TextColumn::make('rate')
+                    ->suffix('%')
+                    ->sortable(),
+
+                IconColumn::make('is_default')
+                    ->label('Default')
+                    ->boolean()
+                    ->sortable(),
+
+                TextColumn::make('created_at')
+                    ->dateTime()
+                    ->sortable()
+                    ->toggleable(isToggledHiddenByDefault: true),
+
+                TextColumn::make('updated_at')
+                    ->dateTime()
+                    ->sortable()
+                    ->toggleable(isToggledHiddenByDefault: true),
+            ])
+            ->filters([
+                TrashedFilter::make(),
+            ])
+            ->actions([
+                EditAction::make(),
+                DeleteAction::make(),
+                RestoreAction::make(),
+                ForceDeleteAction::make(),
+            ]);
+    }
+
+    public static function getPages(): array
+    {
+        return [
+            'index' => Pages\ListTaxClasses::route('/'),
+            'create' => Pages\CreateTaxClass::route('/create'),
+            'edit' => Pages\EditTaxClass::route('/{record}/edit'),
+        ];
+    }
+
+    public static function getEloquentQuery(): Builder
+    {
+        return parent::getEloquentQuery()
+            ->withoutGlobalScopes([
+                SoftDeletingScope::class,
+            ]);
+    }
+
+    public static function getPermissionPrefixes(): array
+    {
+        return [
+            'view_any',
+            'view',
+            'create',
+            'update',
+            'restore',
+            'restore_any',
+            'delete',
+            'delete_any',
+            'force_delete',
+            'force_delete_any',
+        ];
+    }
+}
diff --git a/src/Filament/Resources/TaxClassResource/Pages/CreateTaxClass.php b/src/Filament/Resources/TaxClassResource/Pages/CreateTaxClass.php
new file mode 100644
index 0000000..1ed81e8
--- /dev/null
+++ b/src/Filament/Resources/TaxClassResource/Pages/CreateTaxClass.php
@@ -0,0 +1,41 @@
+<?php
+
+namespace Eclipse\Catalogue\Filament\Resources\TaxClassResource\Pages;
+
+use Eclipse\Catalogue\Filament\Resources\TaxClassResource;
+use Eclipse\Catalogue\Models\TaxClass;
+use Filament\Facades\Filament;
+use Filament\Resources\Pages\CreateRecord;
+
+class CreateTaxClass extends CreateRecord
+{
+    protected static string $resource = TaxClassResource::class;
+
+    protected function mutateFormDataBeforeCreate(array $data): array
+    {
+        // If this class is being set as default, unset all other defaults within the same tenant
+        if ($data['is_default'] ?? false) {
+            $query = TaxClass::where('is_default', true);
+
+            // Add tenant scope if tenancy is configured
+            $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+            $tenantId = Filament::getTenant()?->id;
+            if ($tenantFK && $tenantId) {
+                $query->where($tenantFK, $tenantId);
+            }
+
+            $query->update(['is_default' => false]);
+        }
+
+        // Auto-set current tenant_id if tenancy is configured
+        $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+        $tenantId = Filament::getTenant()?->id;
+        if ($tenantFK && $tenantId) {
+            $data[$tenantFK] = $tenantId;
+        } elseif ($tenantFK) {
+            throw new \Exception('Current tenant not available. Cannot create TaxClass without tenant context.');
+        }
+
+        return $data;
+    }
+}
diff --git a/src/Filament/Resources/TaxClassResource/Pages/EditTaxClass.php b/src/Filament/Resources/TaxClassResource/Pages/EditTaxClass.php
new file mode 100644
index 0000000..54e9864
--- /dev/null
+++ b/src/Filament/Resources/TaxClassResource/Pages/EditTaxClass.php
@@ -0,0 +1,57 @@
+<?php
+
+namespace Eclipse\Catalogue\Filament\Resources\TaxClassResource\Pages;
+
+use Eclipse\Catalogue\Filament\Resources\TaxClassResource;
+use Eclipse\Catalogue\Models\TaxClass;
+use Filament\Actions\DeleteAction;
+use Filament\Actions\ForceDeleteAction;
+use Filament\Actions\RestoreAction;
+use Filament\Facades\Filament;
+use Filament\Resources\Pages\EditRecord;
+
+class EditTaxClass extends EditRecord
+{
+    protected static string $resource = TaxClassResource::class;
+
+    protected function getHeaderActions(): array
+    {
+        return [
+            DeleteAction::make(),
+            ForceDeleteAction::make(),
+            RestoreAction::make(),
+        ];
+    }
+
+    protected function mutateFormDataBeforeSave(array $data): array
+    {
+        // If this class is being set as default, unset all other defaults within the same tenant
+        if ($data['is_default'] ?? false) {
+            $query = TaxClass::where('is_default', true)
+                ->where('id', '!=', $this->record->id);
+
+            // Add tenant scope if tenancy is configured
+            $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+            $tenantId = $this->record->getAttribute($tenantFK);
+            if ($tenantFK && $tenantId) {
+                $query->where($tenantFK, $tenantId);
+            }
+
+            $query->update(['is_default' => false]);
+        }
+
+        // Ensure tenant id is preserved if tenancy is configured
+        $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+        if ($tenantFK && ! isset($data[$tenantFK])) {
+            // Use current tenant from Filament or preserve existing
+            $tenantId = Filament::getTenant()?->id;
+            if ($tenantId) {
+                $data[$tenantFK] = $tenantId;
+            } else {
+                $data[$tenantFK] = $this->record->getAttribute($tenantFK);
+            }
+        }
+
+        return $data;
+    }
+}
diff --git a/src/Filament/Resources/TaxClassResource/Pages/ListTaxClasses.php b/src/Filament/Resources/TaxClassResource/Pages/ListTaxClasses.php
new file mode 100644
index 0000000..ad72853
--- /dev/null
+++ b/src/Filament/Resources/TaxClassResource/Pages/ListTaxClasses.php
@@ -0,0 +1,19 @@
+<?php
+
+namespace Eclipse\Catalogue\Filament\Resources\TaxClassResource\Pages;
+
+use Eclipse\Catalogue\Filament\Resources\TaxClassResource;
+use Filament\Actions\CreateAction;
+use Filament\Resources\Pages\ListRecords;
+
+class ListTaxClasses extends ListRecords
+{
+    protected static string $resource = TaxClassResource::class;
+
+    protected function getHeaderActions(): array
+    {
+        return [
+            CreateAction::make(),
+        ];
+    }
+}
diff --git a/src/Models/TaxClass.php b/src/Models/TaxClass.php
new file mode 100644
index 0000000..1e2191d
--- /dev/null
+++ b/src/Models/TaxClass.php
@@ -0,0 +1,103 @@
+<?php
+
+namespace Eclipse\Catalogue\Models;
+
+use Illuminate\Database\Eloquent\Model;
+use Illuminate\Database\Eloquent\Relations\BelongsTo;
+use Illuminate\Database\Eloquent\SoftDeletes;
+use Illuminate\Validation\ValidationException;
+
+class TaxClass extends Model
+{
+    use SoftDeletes;
+
+    protected $table = 'pim_tax_classes';
+
+    public function getFillable(): array
+    {
+        $fillable = [
+            'name',
+            'description',
+            'rate',
+            'is_default',
+        ];
+
+        if (config('eclipse-catalogue.tenancy.foreign_key')) {
+            $fillable[] = config('eclipse-catalogue.tenancy.foreign_key');
+        }
+
+        return $fillable;
+    }
+
+    protected function casts(): array
+    {
+        return [
+            'rate' => 'decimal:2',
+            'is_default' => 'boolean',
+        ];
+    }
+
+    protected static function boot()
+    {
+        parent::boot();
+
+        static::saving(function ($model) {
+            // If this class is being set as default, unset all other defaults within the same tenant
+            if ($model->is_default) {
+                $query = static::where('is_default', true)
+                    ->where('id', '!=', $model->id);
+
+                // Add tenant scope if tenancy is configured
+                $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+                $tenantId = $model->getAttribute($tenantFK);
+                if ($tenantFK && $tenantId) {
+                    $query->where($tenantFK, $tenantId);
+                }
+
+                $query->update(['is_default' => false]);
+            }
+        });
+
+        static::deleting(function ($model) {
+            // Prevent deletion of default class
+            if ($model->is_default) {
+                throw ValidationException::withMessages([
+                    'is_default' => 'Cannot delete the default tax class.',
+                ]);
+            }
+        });
+    }
+
+    /**
+     * Get the default tax class for the current tenant
+     */
+    public static function getDefault(?int $tenantId = null): ?self
+    {
+        $query = static::where('is_default', true);
+
+        // Add tenant scope if tenancy is configured
+        $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+        $currentTenantId = $tenantId ?: \Filament\Facades\Filament::getTenant()?->id;
+        if ($tenantFK && $currentTenantId) {
+            $query->where($tenantFK, $currentTenantId);
+        }
+
+        return $query->first();
+    }
+
+    /**
+     * Check if this is the default class
+     */
+    public function isDefault(): bool
+    {
+        return $this->is_default;
+    }
+
+    public function tenant(): BelongsTo
+    {
+        $tenantModel = config('eclipse-catalogue.tenancy.model');
+        $tenantFK = config('eclipse-catalogue.tenancy.foreign_key');
+
+        return $this->belongsTo($tenantModel, $tenantFK);
+    }
+}
diff --git a/src/Policies/TaxClassPolicy.php b/src/Policies/TaxClassPolicy.php
new file mode 100644
index 0000000..074d86e
--- /dev/null
+++ b/src/Policies/TaxClassPolicy.php
@@ -0,0 +1,102 @@
+<?php
+
+namespace Eclipse\Catalogue\Policies;
+
+use Eclipse\Catalogue\Models\TaxClass;
+use Illuminate\Auth\Access\HandlesAuthorization;
+use Illuminate\Contracts\Auth\Access\Authorizable;
+
+class TaxClassPolicy
+{
+    use HandlesAuthorization;
+
+    /**
+     * Determine whether the user can view any models.
+     */
+    public function viewAny(Authorizable $user): bool
+    {
+        return $user->can('view_any_tax::class');
+    }
+
+    /**
+     * Determine whether the user can view the model.
+     */
+    public function view(Authorizable $user, TaxClass $taxClass): bool
+    {
+        return $user->can('view_tax::class');
+    }
+
+    /**
+     * Determine whether the user can create models.
+     */
+    public function create(Authorizable $user): bool
+    {
+        return $user->can('create_tax::class');
+    }
+
+    /**
+     * Determine whether the user can update the model.
+     */
+    public function update(Authorizable $user, TaxClass $taxClass): bool
+    {
+        return $user->can('update_tax::class');
+    }
+
+    /**
+     * Determine whether the user can delete the model.
+     */
+    public function delete(Authorizable $user, TaxClass $taxClass): bool
+    {
+        // Prevent deletion of default class
+        if ($taxClass->is_default) {
+            return false;
+        }
+
+        return $user->can('delete_tax::class');
+    }
+
+    /**
+     * Determine whether the user can bulk delete.
+     */
+    public function deleteAny(Authorizable $user): bool
+    {
+        return $user->can('delete_any_tax::class');
+    }
+
+    /**
+     * Determine whether the user can permanently delete.
+     */
+    public function forceDelete(Authorizable $user, TaxClass $taxClass): bool
+    {
+        // Prevent force deletion of default class
+        if ($taxClass->is_default) {
+            return false;
+        }
+
+        return $user->can('force_delete_tax::class');
+    }
+
+    /**
+     * Determine whether the user can permanently bulk delete.
+     */
+    public function forceDeleteAny(Authorizable $user): bool
+    {
+        return $user->can('force_delete_any_tax::class');
+    }
+
+    /**
+     * Determine whether the user can restore.
+     */
+    public function restore(Authorizable $user, TaxClass $taxClass): bool
+    {
+        return $user->can('restore_tax::class');
+    }
+
+    /**
+     * Determine whether the user can bulk restore.
+     */
+    public function restoreAny(Authorizable $user): bool
+    {
+        return $user->can('restore_any_tax::class');
+    }
+}
diff --git a/tests/Feature/TaxClassCrudTest.php b/tests/Feature/TaxClassCrudTest.php
new file mode 100644
index 0000000..7752d71
--- /dev/null
+++ b/tests/Feature/TaxClassCrudTest.php
@@ -0,0 +1,90 @@
+<?php
+
+use Eclipse\Catalogue\Models\TaxClass;
+
+beforeEach(function () {
+    $this->migrate();
+});
+
+it('can create a tax class', function () {
+    $taxClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate for most products',
+        'rate' => 20.00,
+        'is_default' => false,
+    ]);
+
+    expect($taxClass)->toBeInstanceOf(TaxClass::class);
+    expect($taxClass->name)->toBe('Standard Rate');
+    expect($taxClass->description)->toBe('Standard tax rate for most products');
+    expect($taxClass->rate)->toBe('20.00');
+    expect($taxClass->is_default)->toBeFalse();
+
+    $this->assertDatabaseHas('pim_tax_classes', [
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate for most products',
+        'rate' => '20.00',
+        'is_default' => false,
+    ]);
+});
+
+it('can update a tax class', function () {
+    $taxClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => false,
+    ]);
+
+    $taxClass->update([
+        'name' => 'Updated Standard Rate',
+        'description' => 'Updated description',
+        'rate' => 21.00,
+        'is_default' => true,
+    ]);
+
+    expect($taxClass->name)->toBe('Updated Standard Rate');
+    expect($taxClass->description)->toBe('Updated description');
+    expect($taxClass->rate)->toBe('21.00');
+    expect($taxClass->is_default)->toBeTrue();
+
+    $this->assertDatabaseHas('pim_tax_classes', [
+        'id' => $taxClass->id,
+        'name' => 'Updated Standard Rate',
+        'description' => 'Updated description',
+        'rate' => '21.00',
+        'is_default' => true,
+    ]);
+});
+
+it('can soft delete a non-default tax class', function () {
+    $taxClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    $taxClass->delete();
+
+    $this->assertSoftDeleted('pim_tax_classes', [
+        'id' => $taxClass->id,
+    ]);
+});
+
+it('can restore a soft deleted tax class', function () {
+    $taxClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    $taxClass->delete();
+    $taxClass->restore();
+
+    $this->assertDatabaseHas('pim_tax_classes', [
+        'id' => $taxClass->id,
+        'deleted_at' => null,
+    ]);
+});
diff --git a/tests/Feature/TaxClassDefaultValidationTest.php b/tests/Feature/TaxClassDefaultValidationTest.php
new file mode 100644
index 0000000..47591af
--- /dev/null
+++ b/tests/Feature/TaxClassDefaultValidationTest.php
@@ -0,0 +1,91 @@
+<?php
+
+use Eclipse\Catalogue\Models\TaxClass;
+
+beforeEach(function () {
+    $this->migrate();
+});
+
+it('ensures only one class can be set as default when creating', function () {
+    // Create first default class
+    $firstClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    // Create second class as default
+    $secondClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => true,
+    ]);
+
+    // Refresh first class from database
+    $firstClass->refresh();
+
+    // Check that only the new class is default
+    expect($firstClass->is_default)->toBeFalse();
+    expect($secondClass->is_default)->toBeTrue();
+});
+
+it('ensures only one class can be set as default when updating', function () {
+    $firstClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    $secondClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    // Update second class to be default
+    $secondClass->update(['is_default' => true]);
+
+    // Refresh first class
+    $firstClass->refresh();
+
+    // Check that only the updated class is default
+    expect($firstClass->is_default)->toBeFalse();
+    expect($secondClass->is_default)->toBeTrue();
+});
+
+it('allows multiple classes to be non-default', function () {
+    $firstClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => false,
+    ]);
+
+    $secondClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    // Check that both classes are non-default
+    expect($firstClass->is_default)->toBeFalse();
+    expect($secondClass->is_default)->toBeFalse();
+});
+
+it('can unset default by updating to false', function () {
+    $class = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    $class->update(['is_default' => false]);
+
+    expect($class->is_default)->toBeFalse();
+});
diff --git a/tests/Feature/TaxClassPermissionTest.php b/tests/Feature/TaxClassPermissionTest.php
new file mode 100644
index 0000000..aa6140d
--- /dev/null
+++ b/tests/Feature/TaxClassPermissionTest.php
@@ -0,0 +1,86 @@
+<?php
+
+use Eclipse\Catalogue\Filament\Resources\TaxClassResource;
+use Eclipse\Catalogue\Filament\Resources\TaxClassResource\Pages\ListTaxClasses;
+use Eclipse\Catalogue\Models\TaxClass;
+use Eclipse\Catalogue\Policies\TaxClassPolicy;
+use Workbench\App\Models\User;
+
+use function Pest\Livewire\livewire;
+
+beforeEach(function () {
+    $this->migrate();
+});
+
+it('policy prevents deletion of default class regardless of user permissions', function () {
+    $user = User::factory()->create();
+
+    $defaultClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    $policy = new TaxClassPolicy;
+    $canDelete = $policy->delete($user, $defaultClass);
+
+    expect($canDelete)->toBeFalse();
+});
+
+it('policy prevents force deletion of default class regardless of user permissions', function () {
+    $user = User::factory()->create();
+
+    $defaultClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    $policy = new TaxClassPolicy;
+    $canForceDelete = $policy->forceDelete($user, $defaultClass);
+
+    expect($canForceDelete)->toBeFalse();
+});
+
+test('unauthorized access can be prevented', function () {
+    // Create regular user with no permissions
+    $this->setUpCommonUser();
+
+    // Create test tax class
+    $taxClass = TaxClass::create([
+        'name' => 'Test Rate',
+        'description' => 'Test tax rate',
+        'rate' => 15.00,
+        'is_default' => false,
+    ]);
+
+    // View table
+    $this->get(TaxClassResource::getUrl())
+        ->assertForbidden();
+
+    // Add direct permission to view the table, since otherwise any other action below is not available even for testing
+    $this->user->givePermissionTo('view_any_tax::class');
+
+    // Create tax class
+    livewire(ListTaxClasses::class)
+        ->assertActionDisabled('create');
+
+    // Edit tax class
+    livewire(ListTaxClasses::class)
+        ->assertCanSeeTableRecords([$taxClass])
+        ->assertTableActionDisabled('edit', $taxClass);
+
+    // Delete tax class
+    livewire(ListTaxClasses::class)
+        ->assertTableActionDisabled('delete', $taxClass);
+
+    // Restore and force delete
+    $taxClass->delete();
+    $this->assertSoftDeleted($taxClass);
+
+    livewire(ListTaxClasses::class)
+        ->assertTableActionDisabled('restore', $taxClass)
+        ->assertTableActionDisabled('forceDelete', $taxClass);
+});
diff --git a/tests/Unit/TaxClassTest.php b/tests/Unit/TaxClassTest.php
new file mode 100644
index 0000000..e568ff5
--- /dev/null
+++ b/tests/Unit/TaxClassTest.php
@@ -0,0 +1,157 @@
+<?php
+
+use Eclipse\Catalogue\Models\TaxClass;
+use Illuminate\Validation\ValidationException;
+
+beforeEach(function () {
+    $this->migrate();
+});
+
+it('can create a tax class', function () {
+    $taxClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate for most products',
+        'rate' => 20.00,
+        'is_default' => false,
+    ]);
+
+    expect($taxClass)->toBeInstanceOf(TaxClass::class);
+    expect($taxClass->name)->toBe('Standard Rate');
+    expect($taxClass->description)->toBe('Standard tax rate for most products');
+    expect($taxClass->rate)->toBe('20.00');
+    expect($taxClass->is_default)->toBeFalse();
+});
+
+it('can set a tax class as default', function () {
+    $taxClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    expect($taxClass->is_default)->toBeTrue();
+    expect($taxClass->isDefault())->toBeTrue();
+});
+
+it('ensures only one class can be default', function () {
+    // Create first default class
+    $firstClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    // Create second class as default
+    $secondClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => true,
+    ]);
+
+    // Refresh first class from database
+    $firstClass->refresh();
+
+    expect($firstClass->is_default)->toBeFalse();
+    expect($secondClass->is_default)->toBeTrue();
+});
+
+it('can get the default tax class', function () {
+    TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    $defaultClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    $retrieved = TaxClass::getDefault();
+
+    expect($retrieved)->not->toBeNull();
+    expect($retrieved->id)->toBe($defaultClass->id);
+    expect($retrieved->name)->toBe('Standard Rate');
+});
+
+it('returns null when no default class exists', function () {
+    TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => false,
+    ]);
+
+    $default = TaxClass::getDefault();
+
+    expect($default)->toBeNull();
+});
+
+it('prevents deletion of default class', function () {
+    $defaultClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    expect(fn () => $defaultClass->delete())
+        ->toThrow(ValidationException::class, 'Cannot delete the default tax class.');
+});
+
+it('allows deletion of non-default class', function () {
+    $class = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    expect($class->delete())->toBeTrue();
+});
+
+it('can soft delete and restore classes', function () {
+    $class = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    $class->delete();
+    expect($class->trashed())->toBeTrue();
+
+    $class->restore();
+    expect($class->trashed())->toBeFalse();
+});
+
+it('updates default when editing existing class', function () {
+    $firstClass = TaxClass::create([
+        'name' => 'Standard Rate',
+        'description' => 'Standard tax rate',
+        'rate' => 20.00,
+        'is_default' => true,
+    ]);
+
+    $secondClass = TaxClass::create([
+        'name' => 'Reduced Rate',
+        'description' => 'Reduced tax rate',
+        'rate' => 5.00,
+        'is_default' => false,
+    ]);
+
+    // Update second class to be default
+    $secondClass->update(['is_default' => true]);
+
+    // Refresh first class
+    $firstClass->refresh();
+
+    expect($firstClass->is_default)->toBeFalse();
+    expect($secondClass->is_default)->toBeTrue();
+});