> For the complete documentation index, see [llms.txt](https://developer.paddle.com/llms.txt).

# Set automatic tax localization for prices as your default

Use a new setting in the dashboard to set automatic tax localization for prices as the default for new prices created on your account.

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## What's new?

In [a previous release](https://developer.paddle.com/changelog/2025/automatic-tax-inclusive-exclusive-prices.md), we added a new `location` value for `price.tax_mode` to specify that [prices](https://developer.paddle.com/api-reference/prices/overview.md) should be automatically presented inclusive or exclusive of tax based on a customer's location.

You can now set `location` as your account default, meaning new prices are created using this setting.

## How it works

You can set the `tax_mode` for a price to `location` to automatically present prices as inclusive or exclusive of tax based on customer location. This helps you increase conversion by creating a more localized purchase experience for customers.

We've added an option to the Paddle dashboard that lets you set `location` as your default for new prices. This means when you [create a price](https://developer.paddle.com/build/products/create-products-prices.md) and omit the `tax_mode` field or set it as `account_setting`, it's automatically set to `location`.

To turn this setting on, go to **Paddle** > **Checkout** > **Sales tax settings**, then choose the **Automatic based on location** option.

## Next steps

This is a platform change that doesn't include any changes to the Paddle API.

It's a non-breaking change, meaning it doesn't impact existing integrations. Existing prices continue to work exactly as before. If you change your default setting to `location`, new prices created use this setting unless otherwise specified.