Florida has no state income tax, but you will pay sales tax and property tax

Florida does not tax wages, salaries, or investment income at the state level. This is one of the largest tax differences between Florida and most other states. You will not file a state income tax return in Florida, and your employer will not withhold state income tax from your paycheck.

However, Florida does collect sales tax and property tax. The state sales tax rate is 6 percent, though most counties add a local surtax on top of that. Property tax rates vary by county and are based on the assessed value of your home or business property.

If you work in Florida or own property there, understanding these three tax categories — income, sales, and property — will show you where your actual tax obligations lie.

Key Takeaways

  • Florida has no state income tax, so you pay nothing on wages, retirement income, or investment gains to the state.
  • Sales tax in Florida starts at 6 percent state rate, but most counties add 0.5 to 2 percent local tax, bringing your total to 6 percent to 8.5 percent depending on where you shop.
  • Property tax rates in Florida range from about 0.7 percent to 1.1 percent of assessed home value and vary by county.
  • Homestead exemptions can reduce property tax bills for primary residences, but you must explore through your county assessor's office.

Sales tax rates by county

The state sales tax is 6 percent. On top of that, each county can add its own local surtax. Most Florida counties add between 0.5 and 2 percent, which means your total sales tax at checkout ranges from 6 percent to 8.5 percent depending on which county you are in.

Duval County (Jacksonville) charges 7 percent total. Broward County (Fort Lauderdale) charges 7 percent. Miami-Dade County charges 7 percent. Hillsborough County (Tampa) charges 8.5 percent. Pinellas County (St. Petersburg) charges 8.5 percent. Orange County (Orlando) charges 6.5 percent. Palm Beach County charges 7 percent.

The local surtax funds county services like schools, transportation, and emergency services. You can find your exact county rate on your county assessor's website or by searching "[your county name] sales tax rate."

Property tax rates and how they are calculated

Property tax in Florida is based on the assessed value of your property, not a flat rate across the state. The state does not set a single property tax rate. Instead, each county sets its own millage rate — the amount per $1,000 of assessed value that you owe.

Most Florida counties charge between 0.7 and 1.1 percent of assessed home value per year. A home assessed at $300,000 in a county with a 0.9 percent rate would owe roughly $2,700 per year in property tax. The same home in a county with a 1.1 percent rate would owe roughly $3,300.

Your county assessor determines the assessed value of your property. This is not the same as the market value or the price you paid. The assessor looks at comparable sales, property condition, and improvements to set the assessed value. You can challenge the assessment if you believe it is wrong.

Homestead exemption and other property tax breaks

If your primary residence is in Florida, you may be able to claim a homestead exemption. This exemption reduces the assessed value used to calculate your property tax bill, which lowers what you owe.

The homestead exemption typically exempts the first $50,000 of assessed value from taxation. On a home assessed at $300,000, the exemption would reduce the taxable value to $250,000. The exact amount varies slightly by county and changes year to year.

To claim the exemption, you must file a homestead declaration with your county property appraiser's office. You can do this online, by mail, or in person. The important date is usually March 1 of the year you want the exemption to take effect, though some counties allow late filings with a penalty. You will need proof of residency, such as a driver's license or utility bill, and proof of ownership.

Florida also offers additional exemptions for seniors (age 65 and older), disabled persons, and surviving spouses of military members killed in action. Each has different income limits and requirements. Contact your county property appraiser to learn which ones you may may have access to for.

Who pays income tax in Florida

No one in Florida pays state income tax on earned wages, pensions, Social Security, or investment income. This applies whether you are a Florida resident or a non-resident who works in the state.

If you move to Florida from another state, you do not owe back income tax to Florida for years you lived elsewhere. If you still owe income tax to your former state, that is between you and that state — Florida will not collect it.

The only exception is if you are a resident of another state and earned income in Florida. You would still owe income tax to your home state on that Florida income. Florida itself will not tax you, but your state of residence may.

Corporate and business taxes in Florida

Florida has no corporate income tax. Businesses do not pay state tax on profits. However, Florida does charge a corporate tax called the Florida Corporate Income Tax — wait, that is incorrect. Let me correct that: Florida does not have a corporate income tax.

Businesses in Florida do pay sales tax on goods they purchase for resale, and they collect and remit sales tax on what they sell. They also pay property tax on business property and equipment. Self-employed people and sole proprietors do not pay a separate Florida business tax, though they may owe federal self-employment tax.

Some businesses pay a business tax receipt to their county, which is a licensing fee rather than an income tax. The amount depends on the type of business and gross revenue. This is not an income tax — it is a fee to operate in that county.

How Florida compares to other states

Florida's lack of state income tax makes it attractive to retirees and high-income earners. States with no income tax include Texas, Nevada, South Dakota, Washington, Wyoming, and Tennessee. Alaska also has no income tax.

Most states that do not tax income make up the difference with higher sales tax or property tax. Florida's sales tax is moderate compared to states like Louisiana (8.45 percent) or Arkansas (9.45 percent). Florida's property tax rates are also moderate — lower than states like New Jersey or Illinois, but higher than states like Hawaii or Alabama.

If you are considering moving to Florida for tax reasons, compare your total tax burden in your current state against what you would pay in Florida. For retirees living on pensions and investment income, the lack of income tax often results in significant savings. For working-age people with high salaries, the savings depend on whether your current state has income tax and how high it is.

Frequently Asked Questions

Do I have to pay Florida income tax if I work remotely for a company in another state?

No. If you are a Florida resident, you do not owe Florida state income tax regardless of where your employer is located or where you work. Your employer's state may try to tax you, but Florida will not. Check with your employer's state to see if they tax remote workers.

What if I move to Florida mid-year — do I owe income tax to both states?

You owe income tax to your state of residence for the time you lived there. If you moved to Florida on July 1, you owe your former state income tax for January through June and owe Florida nothing. File a part-year resident return with your former state showing the move date.

Are groceries taxed in Florida?

Most groceries are not taxed in Florida. Unprepared food like milk, bread, vegetables, and meat are exempt. Prepared foods, restaurant meals, and items like candy and soda are taxed at the full sales tax rate.

Can I deduct property tax on my federal return if I live in Florida?

Yes, you can deduct state and local property taxes on your federal return, but only up to $10,000 per year total (including state income tax, sales tax, and property tax combined). This limit has been in place since 2017. Consult a tax professional about whether itemizing deductions benefits you.

What happens if I do not pay my property tax bill in Florida?

If property tax goes unpaid for two years, the county can sell your property at a tax deed sale. The county first offers the property to investors at auction. If no one buys it, the county may take ownership. You have a right of redemption — you can pay back taxes plus penalties and interest to reclaim the property — but only within a set time frame. Contact your county tax collector when ready if you fall behind.