Billing Term

What Are Taxes on a Bill?

A plain-language overview of tax line items and what to check when tax amounts look unusual.

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Plain-language definition

Taxes are government-required amounts added to eligible charges on a bill.

Why it appears on a bill

They appear because providers must collect applicable federal, provincial, state, municipal, or other taxes based on the service and location.

What to check

  • Confirm the tax rate shown or implied on the bill.
  • Check which charges were taxed.
  • Compare tax amounts with previous statements.
  • Ask for clarification if taxes are applied to an unexpected item.

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