Florida Tax Rates

This post provides an overview of the primary taxes levied at the state level in Florida. The information contained here is intended for general reference. For individuals or businesses seeking comprehensive support with tax filings, compliance, or strategic planning, indinero offers expert services. We encourage all who utilize this summary to explore the tailored tax support available through indinero.

Individual Income Tax

Florida is one of a handful of states that does not impose a state-level individual income tax.

  • No Personal Income Tax: Residents are not required to pay state tax on wages, salaries, investment income, or retirement income, including pensions, 401(k) distributions, and Social Security benefits.
  • Constitutional Prohibition: The absence of a state individual income tax is enshrined in the state constitution. This results in a significant financial advantage for all residents, particularly retirees.

Sales and Use Tax

Sales tax is a primary source of state revenue in Florida.

  • State Rate: The general state sales tax rate is 6.0% on the retail sale, lease, or rental of most tangible personal property and certain specified services.
  • Local Discretionary Surtax: Counties are authorized to levy an additional local sales tax, known as a Discretionary Sales Surtax. This local tax varies by county, typically ranging from 0.5% to 1.5%.
  • Combined Rate: The combined state and local sales tax rate averages around 7.02% statewide, though the specific rate depends on the county.
  • Exemptions: Essential items like groceries (unprepared food) and prescription drugs are exempt from the state sales tax.
  • Use Tax: A state use tax of 6.0% applies to taxable items purchased outside of Florida but used or stored in the state, if Florida sales tax was not paid.

Property Tax

Property taxes in Florida are administered and collected exclusively at the local level by counties, municipalities, and school districts, and they do not fund the state government.

  • Assessment: Real property is assessed at its just value (market value) by the county property appraiser. The tax owed is calculated by multiplying the taxable value by the local millage rate.
  • “Save Our Homes” Amendment: This unique constitutional provision caps the annual increase in the assessed value of homesteaded (owner-occupied) residential property at the lower of 3% or the Consumer Price Index. This helps prevent sudden, large increases in tax bills, although it can lead to vast differences in taxes paid on similar neighboring homes.
  • Homestead Exemption: Florida offers a substantial Homestead Exemption that allows a qualified property owner to deduct up to $50,000 from the assessed value of their primary residence, reducing the property’s taxable value.

Corporate Income Tax

Florida imposes a corporate income tax on corporations and other artificial entities that conduct business or earn income in the state.

  • Tax Rate: The rate is a flat 5.5% of the corporation’s Florida net income (for tax years beginning on or after January 1, 2022). This rate is considered competitive compared to the average top corporate tax rate among states that impose one.
  • Exemptions: S Corporations and other pass-through entities (like most LLCs and partnerships) are generally exempt from the corporate income tax, as their income passes through to the owners, who are not subject to the state’s individual income tax.
  • Apportionment: For multi-state companies, Florida determines taxable income using a single sales factor apportionment method.

Unique and Excise Taxes

Florida uses several specific taxes to generate revenue, including taxes on transactions and specific industries.

  • Documentary Stamp Tax: This is a key unique tax levied on documents that officially transfer interest in Florida real property (e.g., deeds) and on written obligations to pay money (e.g., notes and mortgages). The rates are specific and calculated based on the consideration paid or the debt amount.
  • Communications Services Tax (CST): A tax levied on the sale of communication services, such as cable television, mobile phone services, and long-distance phone calls. This is a complex tax with a combined state and local rate.
  • Tourist Development Tax (TDT): A tax imposed by local counties on the rental of transient accommodations (e.g., hotel rooms, vacation rentals) for six months or less. This revenue is dedicated to tourism promotion and related facilities.

Motor Fuel Tax: A complex set of fuel taxes is levied, including a state tax and various local option fuel taxes, resulting in a relatively high combined gas tax rate per gallon.

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.