Unexpected behavior in the tax rules for the Employee expense reports

We have a tax rule to apply tax rates to an employee expense report based on the Product category and Expense location.

While creating expense report, in Expense location if we select only Province, Country; tax is getting applied to an expense report properly. But in Expense location if we select city, province, country; tax is not getting calculated on the expense report in Accounts Payables and we are getting this error message.

"You must ensure that either a default tax rate code that's effective on 2025-11-27 is specified for this tax status or that the appropriate rate determination rules are defined"