Florida has no state income tax, but you'll pay sales tax, property tax, and possibly corporate tax depending on your situation
Florida does not tax wages, salaries, or investment income at the state level. This is the biggest tax difference between Florida and most other states. However, you will still owe federal income tax to the IRS, and you may owe sales tax, property tax, or corporate tax depending on what you earn and what you buy.
If you work for an employer or are self-employed, you pay federal income tax based on your income bracket — that is set by the federal government, not Florida. Florida's lack of state income tax does not change what you owe to the IRS. The benefit is that your state does not take an additional percentage on top of that.
Key Takeaways
- Florida has no state income tax on wages, retirement income, or investment gains, which saves residents money compared to states that do tax these sources.
- Sales tax in Florida is 6 percent at the state level, but counties add their own tax, bringing the total to between 6 and 7.5 percent depending on where you shop.
- 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 percent of assessed value per year.
- If you own a business structured as a corporation, you may owe Florida corporate income tax at a rate of 5.5 percent on net income.
- Federal income tax still applies to all Florida residents and is not affected by the state's lack of income tax.
Sales tax: 6 percent state plus county additions
Florida's state sales tax is 6 percent. However, most counties add their own local sales tax on top of that. The total you pay at checkout depends on which county you are in. For example, Miami-Dade County adds 1 percent, bringing the total to 7 percent. Broward County adds 1 percent as well. Hillsborough County (Tampa area) adds 1.5 percent, for a total of 7.5 percent. Duval County (Jacksonville) adds 1.5 percent.
Some counties add less. Alachua County adds 0.5 percent, for a total of 6.5 percent. The lowest combined rate in the state is 6 percent in a few counties that do not add a local tax. You can find your county's rate by searching "sales tax [county name] Florida" or by checking the Florida Department of Revenue website.
Sales tax applies to most goods you buy in stores, but not to groceries, prescription medications, or most medical equipment. Services like haircuts, car repairs, and plumbing are usually not taxed. If you buy something online from a seller with a physical location in Florida, you typically owe sales tax. Out-of-state sellers may or may not charge you tax depending on their policies.
Property tax: Assessed value times your county's millage rate
Property tax in Florida is calculated by taking the assessed value of your home or land and multiplying it by your county's millage rate. The millage rate is expressed as dollars per $1,000 of assessed value. For example, if your home is assessed at $300,000 and your county's millage rate is 0.009 (9 mills), your annual property tax is $2,700.
Millage rates vary significantly by county. Some counties charge around 0.007 per dollar of assessed value (0.7 percent), while others charge 0.011 or higher (1.1 percent or more). Broward County's rate is approximately 0.0085. Miami-Dade County is around 0.0088. Hillsborough County is around 0.0087. You can find your specific county's rate on your property tax bill or on your county assessor's website.
Your home's assessed value is not the same as its market value. The county assessor determines assessed value, which is often lower than what your home would sell for. Homeowners who have lived in their home since before 1995 may benefit from the homestead exemption, which caps the annual increase in assessed value at 3 percent per year, even if the home's market value rises faster. This exemption also exempts the first $50,000 of assessed value from taxation.
Corporate income tax: 5.5 percent if you own a business
If you own a business structured as a corporation in Florida, the business owes corporate income tax at a rate of 5.5 percent on net income. This applies to C corporations and some other business structures. Sole proprietorships and partnerships do not pay corporate income tax in Florida because they are not separate legal entities — the owner reports business income on their personal federal tax return instead.
The 5.5 percent rate is applied to the corporation's taxable income after deductions and expenses. A corporation with $100,000 in net income would owe $5,500 in Florida corporate income tax. This is separate from federal corporate income tax, which is 21 percent at the federal level.
Federal income tax still applies to all residents
Even though Florida does not tax income at the state level, you still owe federal income tax on wages, self-employment income, investment gains, and retirement distributions. Federal tax brackets and rates are set by the IRS and explore to all residents regardless of state. For 2024, federal income tax rates range from 10 percent to 37 percent depending on your income level and filing status.
If you are self-employed, you also owe self-employment tax (Social Security and Medicare tax) to the federal government, which is 15.3 percent of net self-employment income. This is not a Florida tax — it is federal. You pay it by filing Schedule SE with your federal tax return.
Other taxes you may encounter
Florida has an excise tax on certain items. Gasoline is taxed at the state level (currently around 27 cents per gallon, though this changes). Cigarettes and smokeless tobacco are taxed. Alcoholic beverages have state excise taxes. These are built into the price you pay at the pump or register.
If you own a vehicle, you pay registration fees to the Florida Department of Highway Safety and Motor Vehicles, but this is a registration fee, not a tax. Some counties also charge a local option fuel tax on top of the state gasoline tax. If you rent a car, you may pay a rental car surcharge tax, which varies by county.
How Florida's lack of income tax compares to other states
Nine states have no income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire and Tennessee tax only investment income, not wages. Most other states tax both wages and investment income, and rates typically range from 3 to 13 percent depending on the state.
The trade-off is that states without income tax often rely more heavily on sales tax and property tax to fund schools and services. Florida's sales tax is higher than the national average, and property taxes vary widely by county. Someone moving to Florida from a high-income-tax state like New York (up to 10.9 percent) or California (up to 13.3 percent) will save money on income tax but may pay more in sales and property taxes depending on where they live and what they buy.
Frequently Asked Questions
Do I have to pay Florida income tax if I move here from another state?
No. Florida does not tax income for residents or non-residents. If you move to Florida, you will not owe state income tax on wages or investment income. You still owe federal income tax. If you moved from a state with income tax, you may owe that state's tax on income earned before you moved, depending on when you established Florida residency.
What is the sales tax on groceries in Florida?
Groceries are not subject to sales tax in Florida. This includes items like milk, bread, vegetables, and meat. However, prepared foods, candy, and items sold in restaurants are taxed. If you are unsure whether a specific item is taxed, ask the cashier or check your receipt.
Can I deduct property taxes on my federal return?
Yes, but only up to $10,000 per year under current federal rules. This applies to property taxes, state income taxes, and local taxes combined. You must itemize deductions on your federal return to claim this deduction — most people use the standard deduction instead, which is higher.
How often does my property get reassessed for tax purposes?
Your property is assessed every year by the county assessor. However, if you have a homestead exemption, the assessed value can only increase by 3 percent per year, even if the market value rises faster. If you believe your assessment is too high, you can file a formal challenge called a property tax appeal with your county assessor's office.
Is there a state tax on retirement income like Social Security or pensions?
No. Florida does not tax Social Security benefits, pensions, or distributions from retirement accounts like 401(k)s or IRAs. This is one reason Florida is popular with retirees. You still owe federal income tax on these sources if they exceed the federal threshold, but Florida adds nothing on top.