Yes.
An interface can be used as a data type for a reference variable.
Since Toy and Book implement Taxable,
they can both be used with a reference variable of type Taxable:
  public static void main ( String[] args )
  {
    Taxable item1 = new Book ( "Emma", 24.95, "Austin" );
    Taxable item2 = new Toy  ( "Leggos", 54.45, 8 );
    System.out.println( "Tax on item 1 "+ item1.calculateTax() );
    System.out.println( "Tax on item 2 "+ item2.calculateTax() );
  }
The compiler has been told in the interface that all Taxable
objects will have a calculateTax() method,
so that method can be used with the variables.