A Guide to Florida Taxes

Ah . . . Florida. The Sunshine State. There’s nothing quite like it, is there? The sandy beaches, sunny skies and world-famous amusement parks make the state a dream home for many.

If you currently live in Florida or if you’re thinking about trading your winter jacket for sunscreen and making the move, you’ll want to know your way around the state’s taxes. Let’s unpack it all together.

Income Tax in Florida

Guess what, folks: Florida has no personal income tax—zilch! zip! nada!¹ Lucky you, Floridians! You’re one of only nine states in the U.S. without a state income tax. So those hard-earned dollars can stay in your paycheck (outside of federal income taxes, of course). For most people, this means you don’t have to file a state return at tax time.

Estate Tax

There’s also no estate tax in Florida.² That means the state doesn’t take a portion of what is willed to you before you get it. The tax was eliminated in 2004 when the federal government changed the available tax credit to a deduction. Since the state tax was based only on the tax credit, it was no longer needed.

But remember, there’s still a federal estate tax (also called a death tax).on estates worth $12.06 million or more in 2022 (12.92 million in 2023).³ So, let’s be real, most people aren’t expecting or leaving that kind of inheritance. There’s also no inheritance tax—a tax on the people getting the inheritance—at the state or federal level.  

Sales Tax in Florida

There’s a 6% sales tax in Florida.⁴ The tax applies to the sale or rental of most goods. There are some exceptions to the rule: most groceries and prescription medicines are exempt from the tax (yay for Publix!).

But keep in mind that local counties can also add their own sales tax. The average local tax rate is 1.01%, which brings the average sales tax in Florida to 7.01%.⁵

Sales Tax in Florida

State Sales Tax	Average Local Sales Tax	Average Total Sales Tax
6%	1.01%	7.01%

There are a few exceptions to the 6% tax rate.⁶ These are:

• Retail sale of new mobile homes: 3%
• Amusement machine (like Pacman or Skee-Ball) receipts: 4%
• Rental, lease or license of commercial property: 5.5%
• Electricity: 6.95%

Use Tax

Thinking about buying that fancy new smartphone online and having it shipped from out of state to avoid sales tax? Think again. Florida also has something called a use tax. The use tax is on the use of taxable goods or services when a sales tax was not paid at the time of purchase. The use tax is the same as the sale tax at 6%.⁷

So if you buy an item outside the state and have it shipped to you without paying sales tax, you’ll owe a use tax. But in many cases—like with Amazon—large out-of-state businesses and online retailers will collect Florida sales tax at the time of purchase. So keep an eye on those receipts.

Excise Taxes

An excise tax (sometimes called a sin tax) is a tax on specific goods. And Florida has its own share of excise taxes that you’ll want to know about. Remember, even though merchants are responsible for paying these taxes, the costs are usually passed on to the customer—lucky you!

Here are some key excise taxes to take note of:

Excise Taxes in Florida⁸

Gasoline	Cell Phone	Beer	Wine	Spirits
$0.04 per gallon	15.03%	$0.48 per gallon	$2.25 per gallon	$6.50 per gallon

Property Tax

Property tax is the tax rate you pay to your local government based on the value of your home. These taxes are usually used to raise money for public services in your community—things like building schools and fixing potholes.

Taxes don’t have to overwhelm you. See what’s best for your situation—and services you can trust.

Here’s how it works: Your friendly neighborhood property appraiser visits your home to assess its value. They can also review and apply any exemptions, assessment limitations and classifications that you might qualify for.⁹

These are all good things that can help lower your property’s taxable value. And the lower your property’s taxable value, the less you have to pay in taxes—so pay close attention!

Average Property Taxes in Florida¹⁰

Average Median Property Tax	Property Value Percentage
$1,773	0.97%

Corporate Income Tax

Even though Florida has no personal income tax, corporations aren’t as lucky. Corporations—meaning all businesses federally taxed as corporations—have to pay an income tax for the privilege of doing business and making money in the Sunshine State. The current corporate income tax rate in Florida is 5.5%.¹¹

Other Taxes in Florida

Here are some other taxes that people in the Sunshine State should know about.

Reemployment Tax

Many businesses in Florida have to pay a reemployment tax. The tax is designed to help people who lose their jobs stay on their feet while they search for new work. If that sounds a lot like unemployment tax, you’re right! And that’s what it was called  until its name was changed in 2012. Here’s what you need to know:

• The reemployment tax rate starts at 2.7% for new employers.¹²
• You’re assigned a new, experienced-based rate after 10 quarters of reporting.
• The minimum tax rate assigned is 0.10% up to a maximum of 5.4%.¹³
• You’re only taxed on the first $7,000 in wages per employee.

There’s a bunch of confusing math the state uses to figure out your new tax rate. But here’s some good news: You can protest it if you disagree. If you’ve got questions, talk to an experienced tax pro so they can help make sure you’re getting a fair rate.

Documentary Stamp Tax

The documentary stamp tax is an excise tax on certain documents. These are documents that transfer interest (full or partial ownership) in a real estate property or establish obligations to pay money—things like deeds, mortgages, bonds and promissory notes (sort of like an official IOU).¹⁴ The rates are a certain percentage per $100 of the total amount paid, to be paid, or transferred.

Documentary Stamp Tax Rates¹⁵

Deeds	Bonds	Mortgages	Promissory Notes
$0.70 per $100 ($0.60 in Miami-Dade County)	$0.35 per $100	$0.35 per $100	$0.35 per $100

Communications Services Tax (CST)

The communications services tax is a sales tax on services like cable and satellite television, telephones, and music and video streaming.¹⁶ The Florida CST total rate is 7.44%.¹⁷ Local governments can also add in their own CST rate, which bumps the total up a bit depending on where you live.

The CST is usually collected, reported and paid by the service dealer—meaning its usually included as part of your bill. If the dealer doesn’t collect the tax, you’ll owe it in the form of a use tax.¹⁸

Talk With a Tax Pro

Does all this tax stuff make your head spin? We hear you. If you live in Florida or if you’re thinking about making the move down, you want to talk with a tax pro. Even though there’s no personal income tax, they’ll let you know how the rest of the state’s taxes will impact your hard-earned dollars.

And don’t forget you still have to file your federal return every year with Uncle Sam. Our network of Endorsed Local Providers (ELPs) can help streamline the process and avoid any potential tax filing mistakes. These tax professionals are RamseyTrusted and will take the time to explain your taxes and make sure you get every deduction you’re eligible to receive.

Find a tax professional who serves your area today!