diff --git a/src/Billing/Controllers/StripeController.cs b/src/Billing/Controllers/StripeController.cs
index 98073a06ab..ddf3c06265 100644
--- a/src/Billing/Controllers/StripeController.cs
+++ b/src/Billing/Controllers/StripeController.cs
@@ -36,6 +36,7 @@ namespace Bit.Billing.Controllers
         private readonly ILogger<StripeController> _logger;
         private readonly Braintree.BraintreeGateway _btGateway;
         private readonly IReferenceEventService _referenceEventService;
+        private readonly ITaxRateRepository _taxRateRepository;
 
         public StripeController(
             GlobalSettings globalSettings,
@@ -48,7 +49,8 @@ namespace Bit.Billing.Controllers
             IAppleIapService appleIapService,
             IMailService mailService,
             IReferenceEventService referenceEventService,
-            ILogger<StripeController> logger)
+            ILogger<StripeController> logger,
+            ITaxRateRepository taxRateRepository)
         {
             _billingSettings = billingSettings?.Value;
             _hostingEnvironment = hostingEnvironment;
@@ -59,6 +61,7 @@ namespace Bit.Billing.Controllers
             _appleIapService = appleIapService;
             _mailService = mailService;
             _referenceEventService = referenceEventService;
+            _taxRateRepository = taxRateRepository;
             _logger = logger;
             _btGateway = new Braintree.BraintreeGateway
             {
@@ -150,6 +153,8 @@ namespace Bit.Billing.Controllers
                     throw new Exception("Invoice subscription is null. " + invoice.Id);
                 }
 
+                subscription = await VerifyCorrectTaxRateForCharge(invoice, subscription);
+
                 string email = null;
                 var ids = GetIdsFromMetaData(subscription.Metadata);
                 // org
@@ -741,5 +746,31 @@ namespace Bit.Billing.Controllers
             }
             return subscription;
         }
+
+        private async Task<Subscription> VerifyCorrectTaxRateForCharge(Invoice invoice, Subscription subscription)
+        {
+            if (!string.IsNullOrWhiteSpace(invoice?.CustomerAddress?.Country) && !string.IsNullOrWhiteSpace(invoice?.CustomerAddress?.PostalCode))
+            {
+                var localBitwardenTaxRates = await _taxRateRepository.GetByLocationAsync(
+                    new Bit.Core.Models.Table.TaxRate() 
+                    { 
+                        Country = invoice.CustomerAddress.Country,
+                        PostalCode = invoice.CustomerAddress.PostalCode 
+                    }
+                );
+
+                if (localBitwardenTaxRates.Any())
+                {
+                    var stripeTaxRate = await new TaxRateService().GetAsync(localBitwardenTaxRates.First().Id);
+                    if (stripeTaxRate != null && !subscription.DefaultTaxRates.Any(x => x == stripeTaxRate))
+                    {
+                        subscription.DefaultTaxRates = new List<Stripe.TaxRate> { stripeTaxRate };
+                        var subscriptionOptions = new SubscriptionUpdateOptions() { DefaultTaxRates = new List<string>() { stripeTaxRate.Id } };
+                        subscription = await new SubscriptionService().UpdateAsync(subscription.Id, subscriptionOptions);
+                    }
+                }
+            }
+            return subscription;
+        }
     }
 }
diff --git a/src/Core/Services/Implementations/OrganizationService.cs b/src/Core/Services/Implementations/OrganizationService.cs
index 593eebc963..3503bcd206 100644
--- a/src/Core/Services/Implementations/OrganizationService.cs
+++ b/src/Core/Services/Implementations/OrganizationService.cs
@@ -38,6 +38,7 @@ namespace Bit.Core.Services
         private readonly ISsoUserRepository _ssoUserRepository;
         private readonly IReferenceEventService _referenceEventService;
         private readonly GlobalSettings _globalSettings;
+        private readonly ITaxRateRepository _taxRateRepository;
 
         public OrganizationService(
             IOrganizationRepository organizationRepository,
@@ -59,7 +60,8 @@ namespace Bit.Core.Services
             ISsoConfigRepository ssoConfigRepository,
             ISsoUserRepository ssoUserRepository,
             IReferenceEventService referenceEventService,
-            GlobalSettings globalSettings)
+            GlobalSettings globalSettings,
+            ITaxRateRepository taxRateRepository)
         {
             _organizationRepository = organizationRepository;
             _organizationUserRepository = organizationUserRepository;
@@ -81,6 +83,7 @@ namespace Bit.Core.Services
             _ssoUserRepository = ssoUserRepository;
             _referenceEventService = referenceEventService;
             _globalSettings = globalSettings;
+            _taxRateRepository = taxRateRepository;
         }
 
         public async Task ReplacePaymentMethodAsync(Guid organizationId, string paymentToken,
@@ -392,7 +395,7 @@ namespace Bit.Core.Services
             // Retain original collection method
             var collectionMethod = sub.CollectionMethod;
 
-            var subResponse = await subscriptionService.UpdateAsync(sub.Id, new SubscriptionUpdateOptions
+            var subUpdateOptions = new SubscriptionUpdateOptions
             {
                 Items = new List<SubscriptionItemOptions>
                 {
@@ -408,7 +411,26 @@ namespace Bit.Core.Services
                 DaysUntilDue = 1,
                 CollectionMethod = "send_invoice",
                 ProrationDate = prorationDate,
-            });
+            };
+
+            var customer = await new CustomerService().GetAsync(sub.CustomerId);
+            var taxRates = await _taxRateRepository.GetByLocationAsync(
+                new Bit.Core.Models.Table.TaxRate()
+                {
+                    Country = customer.Address.Country,
+                    PostalCode = customer.Address.PostalCode
+                }
+            );
+            var taxRate = taxRates.FirstOrDefault();
+            if (taxRate != null && !sub.DefaultTaxRates.Any(x => x.Equals(taxRate.Id)))
+            {
+                subUpdateOptions.DefaultTaxRates = new List<string>(1) 
+                { 
+                    taxRate.Id 
+                };
+            }
+
+            var subResponse = await subscriptionService.UpdateAsync(sub.Id, subUpdateOptions);
 
             string paymentIntentClientSecret = null;
             if (additionalSeats > 0)
diff --git a/src/Core/Services/Implementations/StripePaymentService.cs b/src/Core/Services/Implementations/StripePaymentService.cs
index e1b254dd5d..b0ad30ff14 100644
--- a/src/Core/Services/Implementations/StripePaymentService.cs
+++ b/src/Core/Services/Implementations/StripePaymentService.cs
@@ -684,7 +684,7 @@ namespace Bit.Core.Services
             // Retain original collection method
             var collectionMethod = sub.CollectionMethod;
 
-            var subResponse = await subscriptionService.UpdateAsync(sub.Id, new SubscriptionUpdateOptions
+            var subUpdateOptions = new SubscriptionUpdateOptions
             {
                 Items = new List<SubscriptionItemOptions>
                 {
@@ -700,7 +700,26 @@ namespace Bit.Core.Services
                 DaysUntilDue = 1,
                 CollectionMethod = "send_invoice",
                 ProrationDate = prorationDate,
-            });
+            };
+
+            var customer = await new CustomerService().GetAsync(sub.CustomerId);
+            var taxRates = await _taxRateRepository.GetByLocationAsync(
+                new Bit.Core.Models.Table.TaxRate()
+                {
+                    Country = customer.Address.Country,
+                    PostalCode = customer.Address.PostalCode
+                }
+            );
+            var taxRate = taxRates.FirstOrDefault();
+            if (taxRate != null && !sub.DefaultTaxRates.Any(x => x.Equals(taxRate.Id)))
+            {
+                subUpdateOptions.DefaultTaxRates = new List<string>(1) 
+                { 
+                    taxRate.Id 
+                };
+            }
+
+            var subResponse = await subscriptionService.UpdateAsync(sub.Id, subUpdateOptions);
 
             string paymentIntentClientSecret = null;
             if (additionalStorage > 0)
diff --git a/test/Core.Test/Services/OrganizationServiceTests.cs b/test/Core.Test/Services/OrganizationServiceTests.cs
index 7856053c81..2a47b8d914 100644
--- a/test/Core.Test/Services/OrganizationServiceTests.cs
+++ b/test/Core.Test/Services/OrganizationServiceTests.cs
@@ -36,11 +36,12 @@ namespace Bit.Core.Test.Services
             var ssoUserRepo = Substitute.For<ISsoUserRepository>();
             var referenceEventService = Substitute.For<IReferenceEventService>();
             var globalSettings = Substitute.For<GlobalSettings>();
+            var taxRateRepository = Substitute.For<ITaxRateRepository>();
 
             var orgService = new OrganizationService(orgRepo, orgUserRepo, collectionRepo, userRepo,
                 groupRepo, dataProtector, mailService, pushNotService, pushRegService, deviceRepo,
                 licenseService, eventService, installationRepo, appCacheService, paymentService, policyRepo,
-                ssoConfigRepo, ssoUserRepo, referenceEventService, globalSettings);
+                ssoConfigRepo, ssoUserRepo, referenceEventService, globalSettings, taxRateRepository);
 
             var id = Guid.NewGuid();
             var userId = Guid.NewGuid();
@@ -97,11 +98,12 @@ namespace Bit.Core.Test.Services
             var ssoUserRepo = Substitute.For<ISsoUserRepository>();
             var referenceEventService = Substitute.For<IReferenceEventService>();
             var globalSettings = Substitute.For<GlobalSettings>();
+            var taxRateRepo = Substitute.For<ITaxRateRepository>();
 
             var orgService = new OrganizationService(orgRepo, orgUserRepo, collectionRepo, userRepo,
                 groupRepo, dataProtector, mailService, pushNotService, pushRegService, deviceRepo,
                 licenseService, eventService, installationRepo, appCacheService, paymentService, policyRepo,
-                ssoConfigRepo, ssoUserRepo, referenceEventService, globalSettings);
+                ssoConfigRepo, ssoUserRepo, referenceEventService, globalSettings, taxRateRepo);
 
             var id = Guid.NewGuid();
             var userId = Guid.NewGuid();
diff --git a/test/Core.Test/Services/StripePaymentServiceTests.cs b/test/Core.Test/Services/StripePaymentServiceTests.cs
index 83fd4eb61f..e8d2456e44 100644
--- a/test/Core.Test/Services/StripePaymentServiceTests.cs
+++ b/test/Core.Test/Services/StripePaymentServiceTests.cs
@@ -25,6 +25,7 @@ namespace Bit.Core.Test.Services
             _appleIapService = Substitute.For<IAppleIapService>();
             _globalSettings = new GlobalSettings();
             _logger = Substitute.For<ILogger<StripePaymentService>>();
+            _taxRateRepository = Substitute.For<ITaxRateRepository>();
 
             _sut = new StripePaymentService(
                 _transactionRepository,