Florida has no state income tax, but you still pay sales tax, property tax, and other levies
Florida does not tax wages, salaries, or investment income at the state level. That is the headline. But the state makes up the difference through sales tax, property tax, and smaller taxes on specific goods and services. If you live or work in Florida, you will encounter at least two of these — and the rates vary by county.
The absence of state income tax does not mean Florida is a tax-free state. It means the tax burden shifts to consumption and property ownership instead of earnings. A person earning $60,000 a year pays nothing to the state on that income, but they pay sales tax on nearly everything they buy and property tax if they own a home.
Key Takeaways
- Florida collects no state income tax on wages, retirement income, or investment gains, which is why many retirees move there.
- Sales tax in Florida ranges from 6% to 7.5% depending on your county, and applies to most goods and some services.
- Property tax rates vary by county and are based on the assessed value of your home or land, typically running 0.7% to 1.1% of value annually.
- Florida also taxes gasoline, cigarettes, alcohol, and certain services like short-term rentals and vehicle registrations.
Sales tax: what you pay at checkout
Florida's state sales tax is 6%. Most counties add a local surtax on top of that, bringing the total to between 6% and 7.5% depending on where you shop. Broward County (Fort Lauderdale area) charges 7%, Hillsborough County (Tampa) charges 7.5%, and Miami-Dade County charges 7%.
Sales tax applies to tangible goods — clothing, groceries, electronics, furniture — and to some services. Haircuts, car repairs, and pest control are taxed. Rent and most professional services like accounting or legal information are not. Prescription medications are exempt, but over-the-counter drugs and vitamins are taxed.
The tax is collected by the retailer and sent to the state and county. You see it added at the register or included in the final price online. If you buy something out of state and have it shipped to Florida, you may owe use tax (essentially the same rate), though enforcement varies.
Property tax: the annual bill for homeowners
If you own real estate in Florida, you receive a property tax bill once a year. The rate is set by your county and is expressed as a percentage of the property's assessed value. Rates range from about 0.7% to 1.1% of assessed value annually, depending on the county. A home assessed at $300,000 in a county with a 0.9% rate would owe roughly $2,700 per year.
The county property appraiser determines the assessed value, which is supposed to reflect market value but lags behind actual sales prices in fast-moving markets. You can challenge the assessment if you believe it is too high. Homeowners who have lived in the same home for years often pay less than new buyers because of homestead exemption rules that cap how much the assessed value can rise each year.
Property tax bills are due by March 31 each year. If you have a mortgage, your lender may collect the tax as part of your monthly payment and pay it on your behalf. Renters do not pay property tax directly — the landlord does — but the cost is often built into the rent.
Other taxes: gas, cigarettes, alcohol, and vehicle fees
Florida taxes gasoline at 27.3 cents per gallon (as of 2024), which is collected when fuel is pumped. Cigarettes face a state tax of $2.06 per pack, plus federal tax. Alcohol is taxed at different rates depending on the type: beer and wine are taxed per unit, and spirits face a higher rate.
Vehicle registration fees are not technically a tax, but they function similarly. Registering a car in Florida costs between $87 and $225 depending on the vehicle's age and weight. Short-term rental properties (like Airbnb listings) are subject to a 6% state tax plus local tourist development taxes that can reach 5% or more.
Utilities are not taxed in Florida, which is one reason the state is attractive to retirees. Telephone service is taxed at the federal level but not the state level.
Who pays income tax in Florida
No one pays Florida state income tax, regardless of income level or source. This applies to W-2 wages, self-employment income, capital gains, dividends, retirement distributions, and Social Security benefits. A retiree living on $100,000 a year in investment income owes nothing to Florida. A self-employed person earning $50,000 owes nothing to Florida (though they owe federal self-employment tax).
You still owe federal income tax to the IRS. Florida's lack of state income tax does not change your federal obligation. If you move to Florida from another state, you may owe income tax to your former state for the portion of the year you lived there, depending on that state's rules.
How homestead exemption reduces property tax
Florida offers a homestead exemption that reduces the assessed value of your primary residence by $50,000 for most homeowners. If your home is assessed at $300,000, the exemption reduces the taxable value to $250,000. This cuts your property tax bill by roughly $450 per year (depending on your county's rate).
To claim homestead exemption, you must own the home, live in it as your primary residence, and file for the exemption with your county property appraiser by March 1 of the year you want it to take effect. Once granted, it stays in place as long as you own the home and it remains your primary residence. If you sell, the new owner must file separately.
Homestead exemption also caps how much your assessed value can rise each year — to 3% or the rate of inflation, whichever is lower. This means long-term homeowners pay significantly less than new buyers in the same neighborhood.
Tax brackets and rates at a glance
| Tax Type | Rate | Who Pays |
|---|---|---|
| State income tax | 0% | No one |
| Sales tax (state) | 6% | Buyers at checkout |
| Sales tax (with county surtax) | 6% to 7.5% | Varies by county |
| Property tax | 0.7% to 1.1% of assessed value | Property owners |
| Gasoline tax | 27.3¢ per gallon | Drivers |
| Cigarette tax | $2.06 per pack | Smokers |
| Vehicle registration | $87 to $225 | Vehicle owners |
Frequently Asked Questions
Do I have to pay Florida income tax if I move there from another state?
No. Florida has no state income tax for anyone, regardless of where you moved from or how long you have lived there. You owe federal income tax to the IRS, but nothing to Florida on wages, retirement income, or investment gains. Your former state may tax you for the portion of the year you lived there before moving.
Is sales tax included in the price shown online?
Not usually. Most online retailers show the price before tax and add sales tax at checkout based on your shipping address. Some retailers include tax in the displayed price, but this is less common. The total you pay will include Florida's 6% state sales tax plus your county's local surtax.
What happens if I rent instead of own a home?
You do not pay property tax directly. Your landlord pays it and typically includes the cost in your rent. You do pay sales tax on purchases and may pay other taxes like gasoline tax. Renters do not benefit from homestead exemption, but they also do not have the annual property tax bill.
Can I deduct Florida property tax on my federal return?
Yes, if you itemize deductions on your federal tax return. Property tax is deductible, but there is a cap: you can deduct a maximum of $10,000 in state and local taxes combined (including income tax, sales tax, and property tax). Most homeowners benefit from this deduction, but the limit means high-tax states offer less advantage.
Do I owe tax on Social Security if I live in Florida?
Florida does not tax Social Security benefits. However, the federal government may tax a portion of your benefits depending on your total income. Florida's lack of state income tax means your Social Security is not subject to state tax, which is one reason retirees choose to move there.