diff --git a/erpnext/setup/setup_wizard/operations/taxes_setup.py b/erpnext/setup/setup_wizard/operations/taxes_setup.py
index 5de54ddf53f..2e5e2c0c092 100644
--- a/erpnext/setup/setup_wizard/operations/taxes_setup.py
+++ b/erpnext/setup/setup_wizard/operations/taxes_setup.py
@@ -127,6 +127,7 @@ def update_regional_tax_settings(country, company):
 			pass
 		except Exception:
 			# Log error and ignore if failed to setup regional tax settings
+			frappe.db.rollback()
 			frappe.log_error("Unable to setup regional tax settings")