Seismic isolation is a well-known method to mitigate the earthquake effects on structures by increasing their fundamental natural periods at the expense of larger displacements in the structural system. In this paper, the seismic response of isolated and fixed base vertical, cylindrical, liquid storage tanks is investigated using a Finite Element Model (FEM), taking into account fluid-structure interaction effects. Three vertical, cylindrical tanks with different ratios of height to radius (H/R = 2.6, 1.0 and 0.3) are numerically analyzed and the results of response-history analysis, including base shear, overturning moment and free surface displacement are reported for isolated and non-isolated tanks. Isolated tanks equipped by lead rubber bearings isolators and the bearing are modeled by using a non-linear spring in FEM model. It is observed that the seismic isolation of liquid storage tanks is quite effective and the response of isolated tanks is significantly influenced by the system parameters such as their fundamental frequencies and the aspect ratio of the tanks. However, the base isolation does not significantly affect the surface wave height and even it can causes adverse effects on the free surface sloshing motion.