diff --git a/src/libs/PolicyDistanceRatesUtils.ts b/src/libs/PolicyDistanceRatesUtils.ts
index 64f430ddbc42..6e180e4ecaf8 100644
--- a/src/libs/PolicyDistanceRatesUtils.ts
+++ b/src/libs/PolicyDistanceRatesUtils.ts
@@ -50,7 +50,7 @@ function validateRateValue(
 function validateTaxClaimableValue(values: FormOnyxValues<TaxReclaimableForm>, rate: Rate | undefined): FormInputErrors<TaxReclaimableForm> {
     const errors: FormInputErrors<TaxReclaimableForm> = {};
 
-    if (rate?.rate && Number(values.taxClaimableValue) > rate.rate / 100) {
+    if (rate?.rate && Number(values.taxClaimableValue) >= rate.rate / 100) {
         errors.taxClaimableValue = Localize.translateLocal('workspace.taxes.error.updateTaxClaimableFailureMessage');
     }
     return errors;
diff --git a/tests/unit/PolicyDistanceRatesUtilsTest.ts b/tests/unit/PolicyDistanceRatesUtilsTest.ts
new file mode 100644
index 000000000000..5a72d5336cd0
--- /dev/null
+++ b/tests/unit/PolicyDistanceRatesUtilsTest.ts
@@ -0,0 +1,13 @@
+import {validateTaxClaimableValue} from '@libs/PolicyDistanceRatesUtils';
+
+describe('PolicyDistanceRatesUtils', () => {
+    describe('validateTaxClaimableValue', () => {
+        it('should return an error when taxClaimableValue is equal to tax rate', () => {
+            // Given a tax claimable value inserted for a distance rate
+            // When the taxClaimableValue is equal to the tax rate
+            const validate = validateTaxClaimableValue({taxClaimableValue: '0.67'}, {rate: 67, customUnitRateID: ''});
+            // Then validateTaxClaimableValue will return an error.
+            expect(validate.taxClaimableValue).toBeDefined();
+        });
+    });
+});