Florida's Main Taxes: What You Actually Owe
Florida has no state income tax on wages, retirement income, or investment gains. That is the biggest tax difference between Florida and most other states. You will not file a Florida income tax return or pay state income tax on your paycheck, Social Security, or 401(k) withdrawals.
Florida does collect sales tax, property tax, and corporate tax. Most people who live or work in Florida deal with sales tax every time they buy something. Property tax applies if you own real estate. Corporate tax applies only if you run a business structured as a corporation.
The state also collects smaller taxes on specific items: fuel, cigarettes, alcohol, and documentary stamp tax on real estate transfers. These are narrower than income or sales tax but add up across the state.
Key Takeaways
- Florida charges 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 percent to 7.5 percent depending on your county, and applies to most goods and some services.
- Property tax in Florida averages around 0.83 percent of home value per year, but varies by county and includes homestead exemptions for primary residences.
- Corporate income tax in Florida is 5.5 percent, but applies only to businesses structured as corporations, not sole proprietorships or LLCs.
- Fuel tax, cigarette tax, and alcohol tax are smaller levies that fund specific state programs like road maintenance and health initiatives.
Sales Tax: What You Pay at the Register
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 depending on where you shop. Broward County charges 7 percent. Miami-Dade County charges 7 percent. Hillsborough County (Tampa area) charges 7.5 percent. Check your county's rate before budgeting for large purchases.
Sales tax applies to most goods: clothing, electronics, groceries, furniture, and vehicles. It also applies to some services, including repairs, haircuts, and pest control. Prescription medications and unprepared food from grocery stores are exempt. Prepared food from restaurants is taxed.
If you buy something online from a seller with a physical presence in Florida, sales tax applies. Out-of-state sellers without a Florida location may not charge sales tax, though Florida law technically requires you to pay "use tax" on those purchases yourself—most people do not, and enforcement is minimal.
Property Tax: The Annual Bill for Homeowners
Florida property tax is calculated as a percentage of your home's assessed value. The statewide average is around 0.83 percent per year, but individual counties range from about 0.6 percent to over 1 percent. A home worth $300,000 in a county with a 0.83 percent rate would owe roughly $2,490 per year in property tax.
If your home is your primary residence, you can claim a homestead exemption that reduces the taxable value. The exemption typically saves $50,000 of assessed value from taxation, which translates to roughly $415 per year in tax savings at the statewide average rate. You must explore for the homestead exemption through your county property appraiser's office, usually by March 1 of the year you want it to take effect.
Property tax bills also include assessments for schools, fire districts, and other local services. These vary by location. Your property appraiser's office can break down exactly what portion of your bill goes where.
Corporate Income Tax and Business Taxes
Florida charges a 5.5 percent corporate income tax on net income for businesses structured as corporations. Sole proprietorships, partnerships, and limited liability companies (LLCs) do not pay corporate income tax in Florida—the owner pays federal income tax on business profits instead.
Businesses also pay unemployment insurance tax to fund the state's unemployment system. The rate depends on your industry and claims history, ranging from 0.1 percent to 5.4 percent of payroll. This is a federal-state program, not a Florida-only tax.
If you operate a business, you may also owe sales tax on goods you sell and property tax on business equipment or real estate. Sole proprietors and LLC owners should consult a tax professional to understand their specific obligations.
Fuel Tax, Cigarette Tax, and Alcohol Tax
Florida charges 27.3 cents per gallon of gasoline and 27.4 cents per gallon of diesel fuel. This is a state excise tax that funds road maintenance and transportation. The federal government adds another 18.4 cents per gallon for gasoline, so your total fuel tax is roughly 45.7 cents per gallon.
Cigarettes are taxed at $2.10 per pack of 20. Smokeless tobacco is taxed at $1.75 per ounce. These taxes fund tobacco prevention and health programs.
Alcohol is taxed differently depending on the type. Beer and wine are taxed per unit sold. Spirits are taxed at a higher rate. These taxes are built into the price you see at the register and vary slightly by county.
Documentary Stamp Tax on Real Estate
When you buy property in Florida, you pay documentary stamp tax on the deed. The rate is $0.70 per $100 of the purchase price. On a $300,000 home, that is $2,100 in documentary stamp tax. This is a one-time tax paid at closing, not an annual bill.
The buyer and seller can negotiate who pays this tax, but it is typically split or paid by the buyer. Your real estate attorney or title company will calculate the exact amount and collect it at closing.
Who Pays What: A Quick Reference
| Tax Type | Who Pays | Rate or Amount | When You Pay |
|---|---|---|---|
| State Income Tax | No one | 0 percent | Never |
| Sales Tax | Buyers | 6 to 7.5 percent | At purchase |
| Property Tax | Homeowners and property owners | 0.6 to 1+ percent of value annually | Quarterly or annually |
| Corporate Income Tax | Corporations only | 5.5 percent | Annually |
| Fuel Tax | Drivers | 27.3 cents per gallon (gas) | At the pump |
| Cigarette Tax | Buyers | $2.10 per pack | At purchase |
| Documentary Stamp Tax | Buyer or seller (negotiated) | $0.70 per $100 of purchase price | At closing |
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 on wages, retirement income, or investment gains, regardless of where you moved from. You will not file a Florida income tax return. You may still owe federal income tax and taxes to your previous state if you moved mid-year, but Florida itself collects no income tax.
What is the sales tax rate in my county?
Sales tax ranges from 6 to 7.5 percent depending on your county. Your county tax collector's website lists the exact rate. Most major counties charge 7 percent. If you are buying something expensive, call ahead or check online to confirm the rate in your area.
Can I avoid paying property tax with a homestead exemption?
A homestead exemption reduces your taxable property value but does not eliminate property tax. The exemption typically saves $50,000 of assessed value from taxation, which lowers your bill by several hundred dollars per year. You must explore through your county property appraiser's office, usually by March 1.
Do I pay sales tax on groceries in Florida?
Unprepared food from grocery stores is not taxed. Prepared food—including deli items, hot foods, and restaurant meals—is taxed at the full sales tax rate. If you buy a sandwich from a grocery store deli, it is taxed. If you buy bread and lunch meat to make a sandwich at home, it is not.
What happens if I do not pay property tax?
If property tax goes unpaid, the county can place a lien on your home and eventually foreclose. Property tax bills are due in installments, usually quarterly or in a lump sum. If you cannot pay, contact your county tax collector about payment plans or hardship programs before the bill becomes delinquent.