Florida has no state income tax, but you still pay sales tax, property tax, and other levies
Florida does not charge a state income tax on wages, salaries, or investment income. This is one of the largest tax differences between Florida and most other states. However, you will pay federal income tax to the IRS, and Florida residents pay sales tax, property tax, corporate tax (if you own a business), and various smaller taxes depending on what you own or buy.
The absence of state income tax is the headline, but it does not mean Florida is tax-free. The state makes up revenue through other sources, and some of those taxes are higher than the national average. Understanding what you actually pay requires looking at each type separately.
Key Takeaways
- Florida has no state income tax on wages, retirement income, or investment gains, which saves working residents thousands per year compared to high-income-tax states.
- Florida sales tax is 6 percent at the state level, but counties add their own surtax, bringing the total to between 6 and 7.5 percent depending on where you shop.
- Property tax in Florida averages around 0.83 percent of home value per year, lower than the national average, but the amount you pay depends entirely on your county and local assessments.
- If you own a business, you pay Florida corporate income tax at 5.5 percent on net income, and self-employed people pay federal self-employment tax but no state equivalent.
- Retirees moving to Florida benefit most from the no-income-tax rule, but should factor in property taxes and sales taxes when comparing total tax burden to their previous state.
Sales tax: 6 percent state plus county add-ons
Florida's state sales tax is 6 percent. However, most counties add a surtax on top of that. The total sales tax you pay ranges from 6 percent to 7.5 percent depending on which county you are in. For example, Miami-Dade County adds 1 percent, bringing the total to 7 percent. Broward County also adds 1 percent. Duval County (Jacksonville) adds 1.5 percent, for a total of 7.5 percent.
Sales tax applies to most goods you buy in stores, but not to groceries, prescription medications, or medical devices. Restaurant meals are taxed. Online purchases are also subject to sales tax if the seller has a physical presence in Florida or meets federal nexus rules.
Some counties have temporary sales tax holidays for specific items—back-to-school supplies in August, for example—but these vary by location and year. Check your county's tax collector website if you are shopping for a large purchase and want to know whether a holiday applies.
Property tax: Varies by county, but generally lower than the U.S. average
Florida property tax is assessed by county, and the rate depends on your county's millage rate and your home's assessed value. The statewide average effective property tax rate is around 0.83 percent of home value per year, which is below the national average of roughly 1.1 percent. However, this varies significantly by county.
For example, Alachua County (Gainesville) has a millage rate around 0.95 percent, while Collier County (Naples) is around 0.75 percent. To find your specific rate, contact your county property appraiser's office or search online for "[your county] millage rate." Your property tax bill is calculated by multiplying your assessed home value by the millage rate.
Florida offers a homestead exemption that reduces the assessed value of your primary residence by up to $50,000, which lowers your property tax bill. You must explore for this exemption through your county property appraiser's office, and it typically takes effect in the year after you explore. If you are over 65, disabled, or a widow or widower, you may may have access to for additional exemptions.
Corporate income tax and self-employment taxes
If you own a business structured as a corporation, Florida charges a corporate income tax of 5.5 percent on net income. This applies to C corporations and S corporations. Sole proprietors and partnerships do not pay Florida corporate tax, but they do pay federal self-employment tax (Social Security and Medicare) to the IRS.
The 5.5 percent rate is moderate compared to other states, many of which charge 6 to 8 percent or higher. However, you will also owe federal corporate income tax at the federal rate, which is currently 21 percent for C corporations.
If you are self-employed as a sole proprietor or partner, you do not owe Florida state income tax on your business earnings. You do owe federal self-employment tax, which is approximately 15.3 percent (12.4 percent for Social Security and 2.9 percent for Medicare on net earnings). This is a federal obligation, not a Florida one.
Other Florida taxes: Fuel, utilities, and documentary stamp tax
Florida charges an excise tax on gasoline and diesel fuel. The current rate is 27.3 cents per gallon for gasoline and 27.3 cents per gallon for diesel, though these rates can change. This is in addition to federal fuel tax.
Utilities—electricity, natural gas, water, and wastewater—are subject to a 6 percent sales tax in Florida. Some counties add an additional utility tax on top of that. For example, some municipalities charge a 2 to 3 percent utility tax on electric bills.
When you buy or transfer real estate in Florida, you pay a documentary stamp tax. This is typically 0.6 percent of the purchase price, split between the buyer and seller (though the split varies by contract). For a $300,000 home, the total documentary stamp tax would be around $1,800.
How Florida's tax structure compares to other states
Florida's lack of state income tax is its biggest tax advantage, especially for high earners and retirees. A person earning $100,000 per year saves roughly $5,000 to $10,000 annually compared to living in a state like New York or California, depending on income level and deductions.
However, Florida's property tax is lower than average, and sales tax is moderate. When you combine all three—income, property, and sales—Florida ranks in the middle of the pack nationally for total tax burden. States with no income tax often compensate with higher property or sales taxes, and Florida follows that pattern.
The biggest tax savings in Florida come to retirees and people with investment income, because they owe no state tax on retirement account withdrawals, Social Security (in most cases), or capital gains. Someone moving from a high-income-tax state to Florida in retirement can see a dramatic reduction in annual tax bills.
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, so you owe nothing to Florida regardless of where your employer is located. You will owe federal income tax and possibly income tax to the state where your employer is based, depending on that state's rules. Most states do not tax remote workers who live elsewhere, but a few do—check your employer's state.
Is Social Security taxed in Florida?
No. Florida does not tax Social Security benefits. However, the federal government may tax your Social Security depending on your total income and filing status. This is a federal issue, not a Florida one. Many retirees in Florida owe no federal tax on Social Security either, depending on their income level.
What is the documentary stamp tax and when do I pay it?
The documentary stamp tax is a one-time tax paid when you buy or sell real estate in Florida. It is typically 0.6 percent of the sale price and is usually paid at closing. The buyer and seller split the cost, though the contract can shift the burden to one party. Your title company or closing attorney will calculate and collect this.
Do I pay sales tax on groceries in Florida?
No. Groceries—food you buy at a supermarket intended for home consumption—are not subject to sales tax in Florida. However, prepared foods, restaurant meals, and items like vitamins or pet food are taxed. If you are unsure whether a specific item is taxed, ask the cashier or check your receipt.
How do I explore for the homestead exemption to lower my property taxes?
Contact your county property appraiser's office and request a homestead exemption form. You will need to prove you own the home and that it is your primary residence. The important date to explore is typically March 1 of the year you want the exemption to take effect, though you can explore later and it will start the following year. The exemption reduces your assessed value by up to $50,000, lowering your annual property tax bill.