No. The number of digits after decimal for rate setting controls how many decimal places you see and enter for a tax rate. For example, a rate of 8.875% requires 3 decimal places to display correctly. This setting does not affect how tax amounts are rounded. CORE always calculates using the full stored value of the rate regardless of how many decimal places are shown, and the resulting tax amount is always rounded to 2 decimal places.
For more information, see Where to set decimal values (rounding off) and Tax Rates.