What Florida taxes you pay depends on your income source and what you buy
Florida has no state income tax on wages, retirement income, or investment gains. That is the single biggest tax difference between Florida and most other states. However, Florida taxes sales, property, and certain specific items — and those taxes can add up quickly depending on where you live and what you spend money on.
The state sales tax starts at 6 percent, but your actual rate depends on your county. Most counties add their own sales tax on top of the state rate, bringing the total to between 6 and 7.5 percent. Property taxes vary widely by county and are based on your home's assessed value. Fuel, groceries, and prescription medications are generally exempt from sales tax, but prepared food, alcohol, and most other goods are not.
Key Takeaways
- Florida has no state income tax, so you pay no tax on wages, pensions, Social Security, or investment income.
- Sales tax ranges from 6 to 7.5 percent depending on your county, with most counties charging between 6.5 and 7 percent.
- Property tax rates vary by county and are calculated as a percentage of your home's assessed value, typically between 0.7 and 1.1 percent annually.
- Groceries, prescription medications, and fuel are exempt from sales tax, but restaurant meals and alcohol are taxed at the full rate.
State sales tax by county
Florida's state sales tax is 6 percent. Every county then adds its own local sales tax, which ranges from 0 to 1.5 percent. The combined rate you pay at checkout depends entirely on which county you are in.
Miami-Dade County charges 7 percent total (6 percent state plus 1 percent local). Broward County charges 7 percent. Hillsborough County (Tampa area) charges 7.5 percent. Duval County (Jacksonville) charges 7 percent. Orange County (Orlando) charges 6.5 percent. Pinellas County (St. Petersburg) charges 7.5 percent. If you live in a rural county with no additional local tax, you pay exactly 6 percent.
The local portion funds county services like schools, roads, and public safety. When you move between counties or shop across county lines, the tax rate changes at the border. Some counties have also passed temporary sales tax increases for specific projects — check your county's tax collector website to confirm the current rate in your area.
Property taxes and how they are calculated
Property tax in Florida is based on your home's assessed value, not a flat fee. The county property appraiser assesses your home's value every year (though the increase is capped at 3 percent per year unless you sell). The tax rate itself varies by county and is set by the county commission.
Most Florida counties charge between 0.7 and 1.1 percent of assessed value annually. A home assessed at $300,000 in a county with a 0.9 percent rate would owe about $2,700 per year. The same home in a county with a 1.1 percent rate would owe about $3,300. Over time, these differences compound significantly.
Florida offers homestead exemptions that reduce the assessed value for primary residences. If you own your home and live in it as your main residence, you can claim a homestead exemption that typically reduces your taxable value by $50,000. You must file for this exemption with your county property appraiser — it does not happen automatically. Seniors and disabled homeowners may may have access to for additional exemptions.
What is and is not taxed at the register
Sales tax applies to most goods and prepared food. Clothing, electronics, furniture, household items, and restaurant meals are all taxed at your county's full rate. Alcohol and tobacco products are taxed, and tobacco also carries an additional state excise tax of $1.993 per pack of cigarettes.
Groceries are exempt — raw meat, produce, dairy, bread, and canned goods are not taxed. Prescription medications are also exempt. Non-prescription vitamins, supplements, and over-the-counter medications are taxed. Gasoline and diesel fuel are exempt from sales tax but carry a state fuel tax of about 27 cents per gallon (this varies slightly and is set by state law, not added at the pump).
Services are generally not taxed. Haircuts, car repairs, medical visits, and plumbing work do not carry sales tax. However, some services bundled with goods — like installation of flooring or appliances — may be partially taxed depending on how the invoice is written.
Corporate and business taxes
Florida has no corporate income tax. Businesses do not pay tax on profits. However, businesses must pay a corporate tax return filing fee that ranges from $50 to $500 depending on the type of business and its structure. This is a fee to file the return, not a tax on income.
Businesses do pay sales tax on goods they purchase for resale and on most services they buy. They collect sales tax from customers and send it to the state. Self-employed people and sole proprietors do not pay a separate business tax in Florida, though they may owe federal self-employment tax.
Taxes on retirement income and investments
Florida does not tax Social Security benefits, pensions, retirement account withdrawals, or investment income. If you receive a pension from a former employer, you owe no state tax on it. If you withdraw money from an IRA or 401(k), you owe no Florida state tax (though you may owe federal tax). Dividends, capital gains, and interest income are not taxed by Florida.
This is one reason Florida attracts retirees. A person living on $50,000 per year from Social Security and a pension pays zero state income tax in Florida. The same person in New York or California would owe thousands in state income tax. However, this advantage is offset partly by property taxes and sales taxes, which are higher in Florida than in some other states.
Taxes you might not expect
Florida taxes hotel rooms at 12.5 percent in most counties (the state charges 6 percent plus local taxes). Short-term rental properties — homes rented through Airbnb or VRBO — are taxed the same way. If you rent out a vacation home, you must collect and pay this tax.
Utility taxes vary by county and city. Some municipalities tax electricity, water, and gas at rates between 2 and 10 percent. These taxes appear on your utility bill. Vehicle registration fees are not income taxes, but Florida does charge annual registration fees based on vehicle value — a newer car costs more to register than an older one.
Intangible property tax was eliminated in Florida in 2007, so you do not pay tax on stocks, bonds, or other securities you own. However, if you inherit property, there is no state inheritance tax or estate tax — Florida does not tax estates passed to heirs.
How Florida's tax burden compares to other states
Florida ranks low on income tax (zero percent) but higher on sales and property taxes. The average combined state and local sales tax is about 6.9 percent, which is above the national average of 5.5 percent. Property tax rates are moderate — not the highest in the nation, but not the lowest either.
For a high-income retiree with no earned income, Florida is very tax-friendly because there is no income tax. For a working family with moderate income, the lack of income tax is offset by higher sales and property taxes. For a low-income household, sales tax on groceries and essentials matters less because groceries are exempt, but property taxes and utility taxes still explore.
If you are considering moving to Florida, calculate your actual tax burden based on your income source, home price, and spending habits rather than assuming the no-income-tax rule makes it cheaper overall.
Frequently Asked Questions
Do I have to pay Florida income tax if I work remotely for a company in another state?
No. Florida has no state income tax regardless of where your employer is located. If you work remotely for a New York company but live in Florida, you owe no Florida income tax. You may owe income tax to your home state if you are still considered a resident there, so check your previous state's rules if you recently moved.
What is the property tax on a $500,000 home in Florida?
It depends on your county. In a county with a 0.9 percent rate, you would owe about $4,500 per year before homestead exemptions. With a $50,000 homestead exemption, the taxable value drops to $450,000, and your tax would be about $4,050. In a county with a 1.1 percent rate, the same home would cost about $5,500 before exemptions and $4,950 after.
Are groceries really not taxed in Florida?
Yes, unprepared groceries are exempt. Raw meat, fresh produce, bread, milk, eggs, and canned goods are not taxed. However, prepared foods — deli items, hot foods, restaurant meals — are taxed at the full rate. Alcohol and tobacco are taxed even when sold in grocery stores.
Do I pay sales tax on used cars in Florida?
Yes. When you buy a used car from a dealer or private seller in Florida, you pay sales tax on the purchase price. The tax is collected at the time of registration with the Department of Motor Vehicles. If you buy a car out of state and bring it to Florida, you still owe Florida sales tax on it.
Is there a state income tax on gambling winnings in Florida?
No. Florida does not tax gambling winnings from casinos, the lottery, or sports betting. However, the federal government taxes large winnings, and you must report them on your federal return. Some gambling losses can be deducted on federal taxes if you itemize, but Florida itself collects no tax on winnings.