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. However, you will still owe federal income tax to the U.S. government, and you will pay sales tax when you buy goods and property tax if you own real estate in the state.
The absence of state income tax does not mean Florida residents pay nothing to the state. Sales tax and property tax make up the bulk of state and local revenue. Understanding how each works helps you plan your budget and know what to expect when you file taxes or make purchases.
Key Takeaways
- Florida collects no state income tax on wages, retirement income, or investment gains, unlike most U.S. states.
- Sales tax in Florida ranges from 6% to 7.5% depending on your county, with some counties adding local surtaxes.
- Property tax rates vary by county and are based on the assessed value of your home or land, typically ranging from 0.7% to 1.1% of assessed value.
- You still owe federal income tax to the IRS even though Florida has no state income tax.
- Some purchases are exempt from sales tax, including groceries, prescription medications, and medical equipment.
Florida sales tax rates by county
The base state sales tax in Florida is 6%. However, most counties add a local surtax on top of this, which means the total rate you pay depends on where you live or shop. The combined rate ranges from 6% to 7.5% across the state.
For example, Miami-Dade County charges 7%, while Broward County charges 7%. Hillsborough County (Tampa area) charges 7.5%, and Duval County (Jacksonville area) charges 7%. Smaller counties may have lower combined rates. When you buy something in a store or online with delivery to Florida, the merchant applies the rate for your delivery address or the store's location.
Some counties also impose additional discretionary surtaxes for specific purposes like infrastructure or school funding. These can add another 0.5% to 1% to your total bill. Check your county's tax collector website to see the exact rate where you live.
What is exempt from Florida sales tax
Not everything you buy is taxed. Groceries — food you prepare at home — are exempt from sales tax. This includes bread, milk, vegetables, meat, and canned goods. However, prepared foods like restaurant meals, deli items ready to eat, and hot foods are taxed.
Prescription medications are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs filled by a pharmacist are not. Medical equipment prescribed by a doctor, such as wheelchairs, hearing aids, and oxygen equipment, is typically exempt as well.
Clothing and shoes under $100 per item are exempt from Florida sales tax. Items over $100 are taxed on the full amount. Children's car seats, diapers, and baby formula are exempt. Services like haircuts, repairs, and professional labor are generally not subject to sales tax, though some service-related goods may be.
How Florida property tax works
Property tax in Florida is based on the assessed value of your home or land, not on a flat rate. The state sets a statewide assessment standard, but each county's property appraiser determines the value of individual properties. Once the value is set, your county applies its millage rate — the tax per $1,000 of assessed value.
Millage rates vary significantly by county. Most Florida counties charge between 0.7% and 1.1% of assessed value per year. A home assessed at $300,000 in a county with a 0.9% rate would owe roughly $2,700 in annual property tax. The same home in a county with a 1.1% rate would owe about $3,300.
Property tax bills arrive once a year, usually in November, and are due by March 31 of the following year. If you own a home with a mortgage, your lender may require you to pay property tax through an escrow account as part of your monthly payment. Homeowners over 65 and disabled homeowners may may have access to for exemptions or deferrals that reduce their tax bill.
Homestead exemption and other property tax breaks
Florida offers a homestead exemption that reduces the assessed value of your primary residence. If you own and live in your home as your main residence, you can claim this exemption, which typically exempts $50,000 of your home's assessed value from taxation. This means if your home is assessed at $300,000, only $250,000 is subject to tax.
To claim the homestead exemption, you must file an process with your county property appraiser by March 1 of the year you want it to take effect. You will need proof of ownership (deed or mortgage statement) and proof that you live there (utility bill, voter registration, or driver's license). The exemption applies only to your primary residence, not to investment properties or vacation homes.
Seniors 65 and older may may have access to for additional exemptions or tax deferrals. Disabled homeowners and surviving spouses of military members killed in action may also receive exemptions. Each county administers these programs slightly differently, so contact your local property appraiser's office to learn what you may may have access to for.
Federal income tax still applies in Florida
Even though Florida has no state income tax, you must still file and pay federal income tax to the Internal Revenue Service (IRS). Your federal tax rate depends on your income level and filing status, not on where you live. Federal tax brackets range from 10% to 37% depending on how much you earn.
If you work for an employer, federal tax is withheld from your paycheck automatically. If you are self-employed or have investment income, you may need to make quarterly estimated tax payments to the IRS. The important date to file your federal return is typically April 15 each year.
Some retirees move to Florida specifically because of the lack of state income tax, which can result in significant savings if you have substantial retirement income or investment earnings. However, you will still owe federal tax on all income sources.
Other taxes you may encounter in Florida
Beyond income, sales, and property tax, Florida residents and businesses pay other taxes. Corporate income tax applies to businesses operating in the state, though sole proprietors and partnerships do not pay it separately — their business income is taxed at the federal level only. Fuel tax is added to gasoline and diesel at the pump. Cigarette and alcohol taxes are included in the price of those products.
If you own a vehicle, you pay vehicle registration fees to the Department of Motor Vehicles, which vary by vehicle type and weight. If you rent a car or hotel room, you pay a rental tax on top of the base price. Vacation rentals (short-term home rentals) are subject to sales tax and sometimes an additional tourist development tax.
Inheritance and estate taxes do not exist in Florida, which is another reason some wealthy individuals choose to retire or relocate there. However, federal estate tax may still explore to very large estates.
Frequently Asked Questions
Do I have to pay state income tax if I move to Florida?
No. Florida has no state income tax, so you will not owe state tax on wages, retirement income, or investment gains. However, you must still pay federal income tax to the IRS. If you moved from another state, you may owe that state's income tax on income earned while you lived there.
Is online shopping taxed differently in Florida?
Online purchases shipped to Florida are subject to Florida sales tax at the rate for your delivery address. The seller is responsible for collecting and remitting the tax. If a seller does not collect tax, you may owe it when you file your federal return, though this is rarely enforced for individual purchases.
Can I deduct property tax on my federal return?
Yes, if you itemize deductions on your federal tax return. The State and Local Tax (SALT) deduction allows you to deduct up to $10,000 in combined state income tax, sales tax, and property tax per year. Since Florida has no state income tax, you can deduct your property tax and sales tax up to that limit.
What happens if I do not pay property tax in Florida?
If property tax goes unpaid, the county can place a lien on your property and eventually foreclose and sell it to recover the debt. However, Florida gives property owners time to pay — typically several months after the due date before enforcement begins. Contact your county tax collector if you cannot pay on time to discuss payment plans.
Are there any income sources that Florida does tax?
No. Florida taxes no form of income, whether it is wages, self-employment income, investment gains, rental income, or retirement distributions. This applies to all residents, regardless of age or income level. The only taxes you owe in Florida are sales tax, property tax, and federal income tax.