Florida has no state income tax, but you still pay sales tax, property tax, and other state fees
Florida does not tax wages, salaries, or investment income at the state level. That means if you work in Florida or live here as a retiree, you keep more of your paycheck than residents of most other states. However, Florida makes up that revenue through other taxes: a sales tax that varies by county, a property tax based on your home's assessed value, and smaller taxes on things like fuel, cigarettes, and corporate income.
The absence of state income tax is often cited as a reason people move to Florida, but the total tax burden depends on what you own and what you buy. A retiree who owns a home outright pays property tax every year. A renter who buys groceries and gas pays sales tax regularly. Understanding which taxes explore to you helps you budget accurately and plan for the costs of living in the state.
Key Takeaways
- Florida has no state income tax on wages, retirement income, or investment gains, which is one of the lowest income tax burdens in the country.
- Sales tax in Florida ranges from 6% to 7.5% depending on your county, and applies to most goods but not groceries or prescription medications.
- Property tax rates vary by county and are based on your home's assessed value, typically ranging from 0.7% to 1.1% of that value per year.
- Other state taxes include fuel tax (around 27 cents per gallon), corporate income tax (5.5%), and excise taxes on cigarettes and alcohol.
Sales tax rates by county
Florida's base sales tax is 6%, but most counties add a local surtax that brings the total to between 6% and 7.5%. The exact rate depends on which county you live or shop in. For example, Miami-Dade County charges 7%, while some smaller counties charge 6%. When you buy something at a store, the full rate—base plus local—appears on your receipt.
Sales tax does not explore to groceries, prescription medications, or medical devices. It does explore to prepared food, restaurant meals, clothing, household goods, gasoline, and most services. If you buy something online from a seller with a physical presence in Florida, sales tax is usually added at checkout. Out-of-state sellers may or may not charge Florida tax depending on their business structure.
To find your exact county rate, search "Florida sales tax by county" or check your county's tax collector website. The rate can change if your county votes to add or remove a local surtax, though this happens infrequently.
Property tax and how it is calculated
Property tax in Florida is calculated as a percentage of your home's assessed value, which is set by your county property appraiser. The rate varies by county and typically falls between 0.7% and 1.1% of that assessed value per year. A home assessed at $300,000 in a county with a 0.9% rate would owe roughly $2,700 per year in property tax.
Your assessed value is not the same as your home's market value. The appraiser estimates what your home would sell for, then applies any exemptions you may have access to for—such as the homestead exemption, which reduces the taxable value for primary residences. If you disagree with the assessed value, you can file a formal challenge called a property tax assessment appeal, usually between January and March each year.
Property tax bills are sent by your county tax collector, typically once or twice per year depending on the county. If you have a mortgage, your lender may collect property tax as part of your monthly escrow payment and pay the county on your behalf.
Homestead exemption and other property tax breaks
The homestead exemption is a reduction in taxable property value available to Florida residents who own and live in their home as a primary residence. It exempts the first $50,000 of your home's assessed value from taxation, and an additional $25,000 if your home is valued over $75,000. This can cut your property tax bill significantly.
To claim the homestead exemption, you file a form with your county property appraiser, usually by March 1 of the year you want it to take effect. You must prove you own the home and live there as your primary residence—a driver's license with your current address and a deed or mortgage document usually suffice. Once approved, the exemption typically continues year to year unless you move or sell.
Florida also offers property tax exemptions for seniors (age 65 and older), disabled people, and surviving spouses of military members killed in action. Each has different income limits and documentation requirements. Your county property appraiser's office can tell you which ones you may may have access to for.
Corporate income tax and business taxes
Businesses in Florida pay a corporate income tax of 5.5% on net income. This applies to corporations, partnerships, and some other business structures. Sole proprietors (self-employed individuals) do not pay a separate corporate tax but may owe federal self-employment tax.
Florida also collects taxes on specific business activities: a sales tax on certain services, a documentary stamp tax on real estate transactions (paid when you buy or refinance a home), and various licensing and permit fees. The documentary stamp tax is typically paid by the seller or split between buyer and seller, depending on the contract.
Fuel tax and excise taxes
Gasoline and diesel fuel in Florida are taxed at the state level. The fuel tax is approximately 27 cents per gallon, though this rate can change if the state legislature votes to adjust it. This tax is included in the price you see at the pump.
Florida also collects excise taxes on cigarettes, cigars, smokeless tobacco, and alcoholic beverages. The cigarette tax is among the highest in the country. These taxes are built into the retail price, so you see the final amount at checkout rather than a separate line item.
How Florida's tax system compares to other states
Florida's lack of state income tax puts it in a group of nine states with no income tax: Alaska, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming also have no state income tax. New Hampshire and Tennessee tax only investment income, not wages.
However, states without income tax typically rely more heavily on sales tax and property tax to fund schools, roads, and services. Florida's sales tax rate is moderate compared to states like Louisiana or Arkansas, but its property tax rates vary widely by county. Whether Florida's overall tax burden is lower than another state depends on your personal situation: your income level, what you own, and what you spend.
Frequently Asked Questions
Do I have to pay Florida income tax on retirement income or Social Security?
No. Florida does not tax any form of income at the state level, including wages, pensions, retirement account withdrawals, Social Security, or investment gains. You may still owe federal income tax on some of these sources, but Florida itself collects nothing.
What is the sales tax on groceries?
Groceries are not subject to Florida sales tax. This includes items like bread, milk, vegetables, and meat purchased from a grocery store. Prepared foods, restaurant meals, and hot deli items are taxed at the full sales tax rate.
How do I find out my property tax rate?
Contact your county property appraiser's office or tax collector's office—both are listed on your county government website. You can also look up your property online through the appraiser's website, which usually shows your assessed value and the tax rate for your area.
Can I appeal my property tax assessment?
Yes. You can file a formal appeal called a property tax assessment appeal with your county property appraiser, usually between January and March each year. The appraiser will review your home's assessed value and may lower it if you can show it is too high compared to similar homes in your area.
Is the homestead exemption automatic, or do I have to explore?
You must explore. File a homestead exemption form with your county property appraiser by March 1 to claim it for that tax year. You will need to prove you own the home and live there as your primary residence. Once approved, it usually continues automatically in future years.