According to:
https://developer.mozilla.org/en/JavaScript/Reference/Global_Objects/Number/toFixed
toFixed() returns:
A string representation of number that does not use exponential
notation and has exactly digits digits after the decimal place.
thus, y+tax is cast to a string since one of the operands is a string.
In my opinion, this would make sense as Javascript's intrinsic numeric types do not have the ability to store a specific number of decimal place digits, so a string would be the most appropriate data structure to store this with.
I would advise you do all your addition before calling toFixed(), since the method is most suitable for formatting display output.
var taxRate = 0.055;
var subtotal = 21.78;
var tax = (taxRate * subtotal).toFixed(2),
totalprice = ((1+taxRate) * subtotal).toFixed(2);
document.write(totalprice);