Florida does not have a state income tax on wages, retirement income, or investment gains

Florida is one of nine states with no state income tax. You will not owe Florida state income tax on your salary, Social Security, pension, or stock dividends. This applies whether you work in Florida, live in Florida, or both.

However, Florida does collect revenue through other taxes. You will pay sales tax on purchases, property tax on real estate, and corporate income tax if you own a business. The state also taxes certain specific activities like gambling winnings and fuel sales.

If you moved to Florida from a state with income tax, or if you work remotely for an out-of-state employer, you do not owe Florida income tax on that income. You may still owe income tax to your previous state of residence, depending on when you moved and that state's rules.

Key Takeaways

  • Florida charges no state income tax on wages, retirement income, investment income, or Social Security benefits.
  • Florida sales tax ranges from 6 percent to 7.5 percent depending on the county, and applies to most goods and some services.
  • Property owners in Florida pay property tax based on the assessed value of their real estate, with rates varying by county.
  • If you moved to Florida from another state, contact that state's tax authority to confirm you no longer owe income tax there.

Florida sales tax rates by county

Florida's base sales tax is 6 percent. Most counties add a local surtax, bringing the total to between 6 percent and 7.5 percent. The rate depends on which county you make the purchase in, not where you live.

For example, Miami-Dade County charges 7 percent total (6 percent state plus 1 percent local). Hillsborough County charges 7.5 percent total (6 percent state plus 1.5 percent local). Alachua County charges 7.5 percent. You can find your county's exact rate on the Florida Department of Revenue website by searching for your county name.

Sales tax applies to most physical goods. It also applies to some services, including short-term rentals, parking, and admission to entertainment venues. Groceries, prescription medications, and medical equipment are typically exempt.

Property tax in Florida

If you own real estate in Florida, you pay property tax to your county. The tax is based on the assessed value of your property, multiplied by your county's millage rate. A millage rate is the amount of tax per $1,000 of assessed value.

Property tax rates vary significantly by county. Some counties charge around 0.7 percent of assessed value annually, while others charge 1 percent or higher. Your county property appraiser's office can tell you your property's assessed value and your county's current millage rate.

Florida offers a homestead exemption that reduces the assessed value of your primary residence by $50,000 if you own and occupy the home. This exemption can lower your property tax bill substantially. You must file for the exemption with your county property appraiser's office, usually by March 1 of the year you want it to take effect.

Corporate income tax and business taxes

If you own a business registered in Florida, you may owe corporate income tax. The rate is 5.5 percent on net income. Sole proprietors and partners do not pay corporate income tax on business income — that income is taxed at the federal level only, not at the state level.

Florida also charges a sales tax on business purchases of certain items, and businesses must collect and remit sales tax on their sales to customers. If you operate a business, contact the Florida Department of Revenue or a tax professional to understand your specific obligations.

What happens if you move to Florida from another state

When you establish residency in Florida, you stop owing income tax to Florida. However, your previous state may still claim you owe income tax for the portion of the year you lived there. Some states tax residents on income earned while they were still residents, even if they moved partway through the year.

Contact your previous state's tax authority and provide documentation of your move — such as a lease, utility bill, or driver's license showing your new Florida address and the date you moved. Ask whether you owe income tax for the current year and what forms you need to file. Some states allow you to file a part-year resident return that covers only the months you lived there.

If you work remotely for an out-of-state employer, the rules depend on where your employer is located and where you work. Generally, you owe income tax to the state where you physically work. Consult a tax professional if your situation is complex.

Federal income tax still applies in Florida

Florida's lack of state income tax does not affect your federal income tax obligations. You still owe federal income tax on wages, self-employment income, investment gains, and other income sources. You will file a federal tax return with the IRS regardless of where you live.

Some people move to Florida specifically to avoid state income tax while still paying federal tax. The federal tax rate is the same nationwide, so living in Florida saves you money only on state taxes, not federal ones.

Frequently Asked Questions

Do I owe Florida income tax if I work remotely for a company in another state?

No, if you live and work in Florida. You owe income tax to the state where you physically perform the work. If you work remotely from your Florida home for an out-of-state employer, you owe Florida no income tax (because Florida has none) and typically owe no income tax to your employer's state either. However, some states have different rules, so confirm with your employer's state tax authority if you are uncertain.

What if I moved to Florida partway through the year?

You may owe income tax to your previous state for the months you lived there. Contact that state's tax authority with your move date and ask whether you need to file a part-year resident return. You will not owe Florida income tax for any part of the year.

Does Florida tax retirement income or Social Security?

No. Florida does not tax Social Security benefits, pensions, 401(k) withdrawals, or IRA distributions. This applies to Florida state tax only — you still owe federal income tax on these sources.

Are groceries and medicine subject to Florida sales tax?

No. Groceries and prescription medications are exempt from Florida sales tax. Non-prescription medications and medical equipment may be taxable depending on the specific item — ask the retailer or check with your county tax collector if you are unsure.

How do I find out my county's property tax rate?

Contact your county property appraiser's office or visit their website. You can search by county name on the Florida Department of Revenue website. Your property appraiser can also tell you your property's assessed value and show you how the millage rate applies to your bill.