Taxes

State Sales tax – ranks #24 nationwide (as of 2023)

The Florida state sales tax rate is 6%, and the average FL sales tax after local surtax is 6.65%.

Groceries and prescription drugs are exempt from the Florida sales tax.

In the state of Florida, gardeners are pleased to see a bit of a tax break on any seeds, herbicides, pesticides, potting soil, plants, seedlings and fruit trees needed to produce food for humans because they're all nontaxable.

Counties and cities can charge an additional local sales tax of up to 1.5%, for a maximum possible combined sales tax of 7.5%

Florida has 993 special sales tax jurisdictions with local sales taxes in addition to the state sales tax.

Florida has a higher state sales tax than 55.8% of states

Florida collects state sales tax on most material purchases as well as on the rental of houses/apartments, rental of material goods, admissions fees, and services such as pest control and cleaning.

Counties and cities may apply a "discretionary sales surtax" in addition to the Florida sales tax, on all purchases up to $5,000 in their jurisdiction. Most counties use sales tax proceeds to fund education or transportation development. A 6% "tourist development tax" can also be collected by counties on seasonal (6 months or less) accommodation rentals (including hotels, condominiums, timeshares, etc).

There are yearly tax holidays set by the Florida legislature during which no sales taxes are collected, often during the holiday season or sometimes preceding hurricane season. Back-to-school tax holidays often exempt common school supplies like clothing and books.

Florida doesn't collect sales tax on purchases of most prescription drugs and groceries. prepared meals and beverages served in restaurants or similar businesses are subject to state sales tax of 6% plus any applicable local sales tax or surtax. Bakery goods are exempt from taxation if the bakery does not provide eating facilities. Complimentary or discounted food or drink provided by restaurants in connection with the purchase of a meal are also exempt from use tax.

Some items may not be eligible for these reduced sales tax rates, such as expensive clothing, unhealthy food or drinks like soda, and certain non-essential pharmaceuticals. Florida does not treat candy or soda as groceries, which means they are not subject to reduced grocery sales tax rates. Other items including gasoline, alcohol, and cigarettes are subject to various Florida excise taxes in addition to the sales tax.

Florida has three sales tax holidays, during which certain items can be purchased sales-tax free.

The FL sales tax applicable to the sale of cars, boats, and real estate sales may also vary by jurisdiction. Florida's sales tax rates for commonly exempted items are as follows:

§  Groceries: EXEMPT

§  Clothing: 6%

§  Prepared Food: 9%

§  Prescription Drugs: EXEMPT

§  Non-Prescription Drugs: 6%

State Property tax – ranks #26 nationwide (as of 2023)

According to the Florida constitution, all property tax rates are set by the state’s local governments—including county governments, city governments and school districts—and all the revenue from those taxes goes straight to them. That means the state itself actually doesn’t see or use any of that money. 

Usually, local governments will charge property taxes using a millage rate. Millage is a tax rate defined as the “dollars charged for each $1,000 of value.”1 One mill equals one dollar of tax for every $1,000 of your property’s assessed value

Property taxes are also based on the market value of your property, which is determined by Florida’s property appraisers at the beginning of each year. Property appraisers also review and apply exemptions, assessment limitations, and classifications that could lower your property's taxable value.

Then tax collectors are responsible for sending your property tax bill (if you don’t already pay your property tax through your mortgage) and collecting your tax payment

After collecting what you owe, the tax collector sends the tax money to your local government. In Florida, property taxes are used to fund public schools and infrastructure, including roads, libraries, and some medical services.

The property tax rate (and how much you’ll owe) depends on a few different factors, including the county you live in, the exemptions you qualify for, and the value of your home. Here’s the basic equation to help you figure out how much you owe in property tax:

(Taxable Value of Your Property / 1,000) x Millage Rate = Property Tax Owed

Let’s say that the millage rate is five mills. One mill equals $1 in property tax for every $1,000 of your home’s value. So in this case, you would pay $5 in property tax for every $1,000 of your home’s assessed value.

Assuming the assessed property value is $350,000:

($350,000 / 1,000) x 5 mills = $1,750

if you qualify for the homestead exemption, that allows you to write off up to $50,000 worth of value from your home. Now you’ll only pay property tax on $300,000 of your home’s value, or $1,500.

There is an additional homestead exemption for persons 65 and older:

   1.          The homeowner must have permanent residency on the homestead property for at least 25 years.

   2.          The household income must not exceed a certain limit set by the Florida Department of Revenue (about $30,000 to $35,000).

   3.          The just value or the market value of the property must be less than $250,000

State Income Tax Rates - none

Florida is one of seven states that do not collect a personal income tax. However, revenue lost to Florida by not having a personal income tax may be made up through other state-level taxes, such as the Florida sales tax and the Florida property tax.

Florida Corporate Income Tax

Florida has a flat corporate income tax rate of 5.500% of gross income. Florida's corporate income tax rate is the 5th lowest in the United States, ranking directly below Georgia's 6.000%.