Tanks are used to store a wide variety of liquids such as oil, gasoline and water. It is reported that, a large number of tanks have been damaged during severe earthquakes. Therefore, understanding their behavior under earthquake is an important subject for structural engineers. In this paper, a comprehensive study is presented on dynamic response of tanks. A parametric study has been completed on the rectangular storage tanks with aid of finite element method (FEM). Various parameters are investigated, such as; liquid height, density and earthquake with different peak ground acceleration (PGA). When investigating these parameters, modal and time history method is used. Six different earthquake records are used for time history analysis. The analysis results show that when the PGA increases by 10.7 times, the maximum displacements, stress, sloshing and base shear increase by 11.4, 22.6, 5.46 and 17.8 times, respectively and when the liquid height increases by two times, the absolute maximum values of stress, displacements, base shear and sloshing increase 1.65, 2.04, 2.05 and 1.34. Furthermore, values of sloshing increase with decrease in density.