Whats the logical error here?

var finalTotal = 0;
var calculateTax = function(subtotal,taxRate) {
var calculateTax = subtotal * taxRate;
var salesTax = parseFloat(calculateTax.toFixed(2));
return salesTax;

finalTotal = calculateTax(1500,.0625);

I see any logical error here, your function is returning the value of the taxe calculated on the base of 6.25% (93.75 in your case).
According to your variables naming i guess that you wanted the final total which is (salesTax + subtotal), if is this what you want you only need to make this change :

        return salesTax + subtotal;
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