diff --git a/.changeset/sweet-jars-travel.md b/.changeset/sweet-jars-travel.md
new file mode 100644
index 0000000000..83fcd13623
--- /dev/null
+++ b/.changeset/sweet-jars-travel.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-sonarqube': patch
+---
+
+Update README to show a simpler proxy configuration.
diff --git a/plugins/sonarqube/README.md b/plugins/sonarqube/README.md
index d0251e91ef..87242f6788 100644
--- a/plugins/sonarqube/README.md
+++ b/plugins/sonarqube/README.md
@@ -45,10 +45,9 @@ proxy:
   '/sonarqube':
     target: https://sonarcloud.io/api
     allowedMethods: ['GET']
-    headers:
-      Authorization: Basic ${SONARQUBE_AUTH}
-      # Content: 'base64("<api-key>:")' <-- note the trailing ':'
-      # Example: bXktYXBpLWtleTo=
+    auth: '${SONARQUBE_TOKEN}:'
+    # Environmental variable: SONARQUBE_TOKEN
+    # Fetch the sonar-auth-token from https://sonarcloud.io/account/security/
 ```
 
 **SonarQube**
@@ -58,20 +57,15 @@ proxy:
   '/sonarqube':
     target: https://your.sonarqube.instance.com/api
     allowedMethods: ['GET']
-    headers:
-      Authorization: Basic ${SONARQUBE_AUTH}
-      # Environmental variable: SONARQUBE_AUTH
-      # Value: 'base64("<sonar-auth-token>:")'
-      # Encode the "<sonar-auth-token>:" string using base64 encoder.
-      # Note the trailing colon (:) at the end of the token.
-      # Example environmental config: SONARQUBE_AUTH=bXktYXBpLWtleTo=
-      # Fetch the sonar-auth-token from https://sonarcloud.io/account/security/
+    auth: '${SONARQUBE_TOKEN}:'
+    # Environmental variable: SONARQUBE_TOKEN
+    # Fetch the sonar-auth-token from https://sonarcloud.io/account/security/
 
 sonarQube:
   baseUrl: https://your.sonarqube.instance.com
 ```
 
-4. Get and provide `SONARQUBE_AUTH` as an env variable (https://sonarcloud.io/account/security or https://docs.sonarqube.org/latest/user-guide/user-token/)
+4. Get and provide `SONARQUBE_TOKEN` as an env variable (https://sonarcloud.io/account/security or https://docs.sonarqube.org/latest/user-guide/user-token/)
 
 5. Run the following commands in the root folder of the project to install and compile the changes.