diff --git a/erpnext/accounts/doctype/tax_rule/tax_rule.json b/erpnext/accounts/doctype/tax_rule/tax_rule.json
index 61d4d1d04a8..60011dd9a3d 100644
--- a/erpnext/accounts/doctype/tax_rule/tax_rule.json
+++ b/erpnext/accounts/doctype/tax_rule/tax_rule.json
@@ -216,6 +216,28 @@
    "set_only_once": 0, 
    "unique": 0
   }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "billing_state", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Billing State", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
   {
    "allow_on_submit": 0, 
    "bold": 0, 
@@ -330,6 +352,28 @@
    "set_only_once": 0, 
    "unique": 0
   }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "fieldname": "shipping_state", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Shipping State", 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
   {
    "allow_on_submit": 0, 
    "bold": 0, 
@@ -536,7 +580,7 @@
  "is_submittable": 0, 
  "issingle": 0, 
  "istable": 0, 
- "modified": "2015-09-10 19:27:47.969867", 
+ "modified": "2015-09-15 12:29:34.435839", 
  "modified_by": "Administrator", 
  "module": "Accounts", 
  "name": "Tax Rule", 
diff --git a/erpnext/accounts/doctype/tax_rule/tax_rule.py b/erpnext/accounts/doctype/tax_rule/tax_rule.py
index 705a26e771a..93bbf459c37 100644
--- a/erpnext/accounts/doctype/tax_rule/tax_rule.py
+++ b/erpnext/accounts/doctype/tax_rule/tax_rule.py
@@ -94,16 +94,19 @@ def get_party_details(party, party_type, args=None):
 		billing_filters=	{party_type: party, "is_primary_address": 1}
 		shipping_filters=	{party_type:party, "is_shipping_address": 1}
 		
-	billing_address=	frappe.get_all("Address", fields=["city", "country"], filters= billing_filters)
-	shipping_address=	frappe.get_all("Address", fields=["city", "country"], filters= shipping_filters)
+	billing_address=	frappe.get_all("Address", fields=["city", "state", "country"], filters= billing_filters)
+	shipping_address=	frappe.get_all("Address", fields=["city", "state", "country"], filters= shipping_filters)
 	
 	if billing_address:
 		out["billing_city"]= billing_address[0].city
+		out["billing_state"]= billing_address[0].state
 		out["billing_country"]= billing_address[0].country
 
 	if shipping_address:
 		out["shipping_city"]= shipping_address[0].city
+		out["shipping_state"]= shipping_address[0].state
 		out["shipping_country"]= shipping_address[0].country
+		
 	return out
 
 def get_tax_template(posting_date, args):