Do items under a dollar have tax?

Taxes are a matter of the tax code in a given jurisdiction. If an item is taxable according to the tax code, then taxes will always be paid, even if the cost of the item is far less than a dollar. The sole exception to this rule is if the calculated taxes of a transaction would not equal at least one-half of one cent, then no taxes are usually due. In practical terms, any item you buy that is taxable will be taxed, even if the cost of the item is only a quarter or a dime.