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, corporate taxes, and smaller levies on things like fuel and utilities. If you move to Florida or earn money there, you will not file a state income tax return—but you will pay taxes in other ways.
The lack of state income tax is why Florida attracts retirees and remote workers. However, if you earned money in another state or country, you may still owe federal income tax to the IRS, and some states tax non-residents on income earned within their borders. Florida's tax structure is simpler than most states, but it is not zero tax.
Key Takeaways
- Florida has no state income tax on wages, retirement income, or investment gains, so you do not file a state return.
- Sales tax in Florida is 6 percent at the state level, but counties add their own tax, bringing the total to 6.5 to 7.5 percent depending on where you shop.
- Property tax in Florida averages around 0.83 percent of home value per year, but varies by county and includes school district levies.
- If you worked in another state or country, you may owe federal income tax to the IRS even though Florida has no state income tax.
Sales tax: what you pay at checkout
Florida's state sales tax is 6 percent. Most counties add their own local sales tax on top of that, ranging from 0.5 to 1.5 percent. The total you pay at the register depends on which county you are in. In Miami-Dade County, for example, the combined rate is 7 percent. In Duval County (Jacksonville), it is 7 percent. In Hillsborough County (Tampa), it is 7.5 percent. Check your county's rate if you want the exact number for your area.
Sales tax applies to most goods—clothing, groceries, electronics, furniture. Some items are exempt: prescription medications, most food you buy at a grocery store (not prepared food), and certain medical equipment. Restaurant meals, takeout, and prepared foods are taxed. If you buy something online from a seller without a Florida location, you may not pay sales tax at checkout, but you could owe use tax to Florida when you file your federal return—though most people do not report this.
Property tax: what homeowners and renters pay
If you own a home in Florida, you pay property tax to your county. The tax is based on the assessed value of your property, not the price you paid. Florida's average effective property tax rate is around 0.83 percent of home value per year, but this varies significantly by county. Some counties are closer to 0.6 percent; others reach 1 percent or higher.
Your property tax bill includes the county tax, school district tax, and any special district taxes (for fire, water, or other services). If you have a mortgage, your lender may require you to pay property tax through escrow—meaning the bank collects it from your monthly payment and pays the county on your behalf. Renters do not pay property tax directly, but landlords pass the cost along through rent.
Florida offers a homestead exemption that reduces the taxable value of your primary residence by up to $50,000, which lowers your bill. You must explore for it through your county property appraiser's office, and you must own and live in the home as your main residence. This exemption is one reason Florida property taxes are lower than in many other states.
Corporate and business taxes
Florida does not tax corporate income, which is why many businesses incorporate there. However, the state does collect corporate tax through other means: a corporate tax on net income for certain businesses, a sales tax on business purchases, and an unemployment insurance tax that employers pay.
If you are self-employed or run a small business in Florida, you do not owe state income tax on your business profits. You still owe federal self-employment tax and federal income tax to the IRS. You may also owe sales tax if you sell goods or taxable services, and you must register with the Florida Department of Revenue if your sales exceed a certain threshold.
Other taxes and fees you may encounter
Florida collects excise taxes on fuel (gasoline and diesel), alcohol, and tobacco. These are built into the price you pay at the pump or store. The state also taxes utilities—electricity, natural gas, and water—at rates that vary by county and utility company. If you own a vehicle, you pay registration fees to the Florida Department of Motor Vehicles, though this is a fee rather than a tax.
Tourists and short-term renters pay a bed tax (also called a tourist development tax) when they book hotels or vacation rentals. This tax varies by county but is typically 5 to 12 percent of the nightly rate. If you rent out a vacation property, you may be responsible for collecting and paying this tax to your county.
Federal income tax still applies
The absence of Florida state income tax does not mean you owe no income tax at all. You still owe federal income tax to the IRS on wages, self-employment income, investment gains, and other sources. You file a federal return (Form 1040) with the IRS every year if your income exceeds the threshold for your filing status.
If you moved to Florida from another state, you may owe that state's income tax on income you earned while you lived there, even if you now live in Florida. Some states tax non-residents on income earned within their borders. If you worked remotely for a company in another state, that state may claim you owe tax on those wages. This is a complex area, and you may want to consult a tax professional if you are in this situation.
How to find your specific tax rates
Your county determines your exact sales tax rate and property tax rate. The Florida Department of Revenue website lists sales tax rates by county. Your county property appraiser's office (search "[your county] property appraiser") publishes property tax rates and can tell you what your home is assessed at.
If you have questions about what you owe, the Florida Department of Revenue answers questions about sales tax and other state taxes. For federal income tax questions, the IRS website (irs.gov) has resources, or you can call the IRS at 1-800-829-1040. If your situation is complicated—you worked in multiple states, you are self-employed, or you recently moved—a tax professional can review your specific circumstances.
Frequently Asked Questions
Do I have to file a Florida state income tax return?
No. Florida has no state income tax, so you do not file a state return. You still file a federal return with the IRS if your income exceeds the threshold for your filing status. Check irs.gov or call 1-800-829-1040 to confirm whether you must file.
If I move to Florida, do I stop owing taxes to my old state?
You stop owing income tax to your old state once you establish residency in Florida, but the timing matters. Some states tax you on income earned while you lived there, even after you move. If you worked remotely for an out-of-state employer, that state may still claim you owe tax. A tax professional can review your situation.
What is the sales tax on groceries in Florida?
Most unprepared food bought at a grocery store is not taxed in Florida. However, prepared foods, restaurant meals, and takeout are taxed at the full sales tax rate for your county. Vitamins and dietary supplements are taxed.
Can I reduce my property tax bill?
Yes, if you own your home and live in it as your primary residence, you may be able to claim the homestead exemption, which reduces your taxable value by up to $50,000. You must explore through your county property appraiser's office. Some homeowners over 65 or with disabilities may may have access to for additional exemptions.
Do I owe Florida use tax if I buy something online?
Technically, yes—if you buy from a seller without a Florida location and do not pay sales tax at checkout, you may owe use tax to Florida. In practice, most individuals do not report this. If you run a business or make large purchases, ask a tax professional about your obligations.