Florida has no state income tax, but you still owe other state taxes

Florida does not charge a state income tax on wages, salaries, or investment income. This is one of the largest tax breaks available to Florida residents — if you earn $100,000 a year in Florida, you pay zero state income tax on that money. The same applies whether you work for an employer, run a business, or live off investment returns.

However, Florida does collect taxes in other forms. The state charges sales tax on most purchases, property tax on real estate, and smaller taxes on specific goods and services. Understanding which taxes explore to you depends on where your income comes from and what you own.

Key Takeaways

  • Florida residents pay no state income tax on wages, business income, or investment gains, which saves most workers hundreds or thousands of dollars per year.
  • Florida's sales tax starts at 6 percent at the state level, but counties add their own rate, bringing the total to between 6 and 7.5 percent depending on location.
  • Property owners pay property tax based on the assessed value of their home or land, with rates varying by county and typically ranging from 0.7 to 1 percent of assessed value.
  • Florida taxes specific items like gasoline, cigarettes, and alcohol at rates set by the state, and some counties add local taxes on top.
  • If you move to Florida from another state, you may still owe income tax to your former state for the portion of the year you lived there.

Sales tax: what you pay at checkout

Florida's state sales tax is 6 percent. This applies to most tangible goods — clothing, electronics, furniture, groceries (with some exceptions), and restaurant meals. When you buy something in a store or online, 6 percent of the price goes to the state.

Most counties add their own sales tax on top of the state rate. County rates range from 0.5 to 1.5 percent, which means your total sales tax at checkout is usually between 6 and 7.5 percent depending on which county you are in. Miami-Dade County, for example, charges 7 percent total (6 state plus 1 county). Broward County charges 7 percent. Hillsborough County charges 7.5 percent. Check your county's tax collector website to see the exact rate where you live.

Some items are exempt from sales tax in Florida. Unprepared food you buy at a grocery store — raw meat, vegetables, bread, milk — is not taxed. Prepared food from a restaurant or deli counter is taxed. Prescription medications are not taxed, but over-the-counter drugs are. Clothing and shoes under $100 per item are not taxed, but items over $100 are taxed on the full amount.

Property tax: what homeowners and landlords owe

If you own real estate in Florida — a house, condo, rental property, or land — you owe property tax to your county. The tax is calculated as a percentage of the property's assessed value, not its market price. A home worth $500,000 on the market might be assessed at $400,000 for tax purposes, depending on when it was last purchased and how the county's assessment system works.

Property tax rates vary by county and typically fall between 0.7 and 1 percent of assessed value per year. Alachua County charges around 0.82 percent. Orange County (which includes Orlando) charges around 0.87 percent. Pinellas County charges around 0.84 percent. On a home assessed at $300,000, a 0.85 percent rate means you owe about $2,550 per year. Your county property appraiser's office publishes the exact rate and can estimate your bill based on your address.

Florida offers a homestead exemption that reduces the assessed value of your primary residence by $50,000. If your home is assessed at $400,000 and you claim homestead, the taxable value drops to $350,000. You must own the property and live in it as your main home to may have access to. The exemption applies only to property tax, not other taxes.

Excise taxes on fuel, cigarettes, and alcohol

Florida charges excise taxes — per-unit taxes — on specific products. Gasoline is taxed at 27.3 cents per gallon at the state level (the federal tax adds another 18.4 cents). Diesel fuel is taxed at 27.3 cents per gallon. These taxes are included in the price you see at the pump.

Cigarettes are taxed at $2.06 per pack of 20. Cigars and smokeless tobacco have separate rates. Alcohol is taxed differently depending on the type: beer, wine, and spirits each have their own per-unit tax. A six-pack of beer, for example, is taxed at the state rate plus any county tax. These taxes are built into the shelf price.

Some counties add local excise taxes on top of the state rate. Hillsborough County, for instance, adds a local cigarette tax. Check your county's tax collector or revenue office to see if additional local excise taxes explore where you live.

Corporate and business taxes

If you own a business in Florida, you do not owe a state corporate income tax on your business profits. This applies to sole proprietorships, partnerships, and corporations. Your business income is not taxed at the state level, though you still owe federal income tax.

However, some business activities trigger other state taxes. If you operate a business that requires a license — a salon, restaurant, rental car agency, or other regulated business — you may owe a license tax. The amount depends on the type of business and is typically a flat annual fee rather than a percentage of revenue. You also owe sales tax on goods you sell, just like any other seller.

What happens if you move to Florida from another state

If you move to Florida partway through the year, you may still owe income tax to your former state for the months you lived there. Most states tax income earned while you were a resident, even if you move away later in the year. For example, if you earned $50,000 in New York from January through June and then moved to Florida, New York will tax that $50,000 even though you are now a Florida resident.

When you file your federal return, you report income from all states where you earned it. You then file a state return in each state where you owed tax. Florida will not tax that income, but your former state will. Some states offer credits for taxes paid to other states to avoid double taxation, but the rules vary. A tax professional can help you understand what you owe to each state.

Frequently Asked Questions

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

No. Florida does not tax income from any source — wages, self-employment, investments, or retirement accounts. It does not matter where your employer is located or where the work is performed. If you are a Florida resident, you owe no state income tax on that income.

Does Florida tax retirement income like Social Security or pensions?

No. Florida does not tax Social Security benefits, military pensions, private pensions, or distributions from retirement accounts like IRAs and 401(k)s. This is one reason Florida attracts retirees from other states.

What if I own property in Florida but live in another state?

You owe Florida property tax on any real estate you own in Florida, regardless of where you live. You also owe income tax to your home state on your income. You do not owe Florida income tax because Florida has no income tax. Property tax is based on location, not residency.

Are groceries taxed in Florida?

Most groceries are not taxed. Unprepared food — raw meat, produce, bread, milk, eggs — is exempt. Prepared food is taxed. This includes hot food from a deli counter, restaurant meals, and items like soda and candy. The line between prepared and unprepared can be unclear; when in doubt, ask the cashier.

How do I find out my exact property tax rate?

Visit your county's property appraiser website and search for your address. The appraiser's office publishes the assessed value and the tax rate for your county. You can also call the county property appraiser's office directly — the number is on the county website — and they will estimate your annual bill based on your property.