\documentclass[tikz, convert = false]{standalone}
\usepackage[utf8]{inputenx}% http://ctan.org/pkg/inputenx
% Euler for math | Palatino for rm | Helvetica for ss | Courier for tt
\renewcommand{\rmdefault}{ppl}% rm
\linespread{1.05}% Palatino needs more leading
\usepackage[scaled]{helvet}% ss // http://ctan.org/pkg/helvet
\usepackage{courier}% tt // http://ctan.org/pkg/courier
\usepackage{eulervm} % http://ctan.org/pkg/eulervm
% a better implementation of the euler package (not in gwTeX)
\normalfont%
\usepackage[T1]{fontenc}% http://ctan.org/pkg/fontenc
\usepackage{textcomp}% http://ctan.org/pkg/textcomp
\usepackage{pgfplots}
\pgfplotsset{compat = 1.9}
\begin{document}
\begin{tikzpicture}
\begin{axis}[
ymax = 1.15,
ymin = 0,
xmin = 0,
xmax = 20,
ytick = {0, .63, 1},
xtick = {0},
axis x line = center,
axis y line = left,
xlabel style = {below = 2ex},
xlabel = {$t$},
ylabel = {$y(t)$},
]
\addplot[blue] gnuplot[id = exp, domain = 0:20] {1 - exp(-x/5)};
\end{axis}
\end{tikzpicture}
\end{document}
I would like to add a dashed horizontal asymptote at y = 1.
I would like to draw a dashed line from y = .63 to the intersection of the function. Then I would like to draw from that intersection to the x axis and label it tau.
How can I do this in pgfplots when using gnuplot?
Additionally, the plot seems choppy to me. Can I add more points to smooth it out?

