Learn all about Florida’s income tax regulations, along with helpful resources to use when tax time rolls around.
No income tax in Florida?
Most states collect both state income tax and federal income tax. Not Florida. It’s one of seven US states with no individual income tax. And, if you’re aspiring to own and operate a business in Florida, you’ll be happy to know that the state’s corporate income tax system consists of a flat rate of 5.5%—the 12th lowest among states with a corporate income tax. And, in 2007 the Intangibles Tax was repealed—resulting in Floridians no longer paying taxes to the state on intangible goods like investments.
All of this means that in 2013, Florida placed the 5th lowest tax burden on its residents and businesses. That makes it a GREAT place to live and own a business.
So how does Florida collect?
The State has to make money somehow, right? According to the Tax Foundation, Florida’s taxpayers pay $3728 per capita in state and local taxes.
Let’s look at some areas where you can expect to pay taxes in Florida, and at some tax resources for Florida residents and business owners.
- Sales Tax. Florida charges a 6% tax rate on the sale or rental of goods (with exceptions like medicines and groceries). Counties can also issue local taxes on top of state taxes (in 2012, 55 of 67 counties levied local sales tax).
- Use Tax. State sales tax has to be paid on items purchased online or other out-of-state purchase (even if no tax was charged at the time of purchase). This includes taxable items bought in Florida and items purchased outside of the state that were brought in or delivered.
- Property tax. State government does not collect property taxes, but local governments get some of their funding through property taxes. Property tax rates are assessed at the local level and vary by county.
- Other taxes. You’ll find that Florida levies taxes on several goods and services: Documentary Stamp Taxes are assessed on documents that transfer interest in Florida real property (warranty deeds, quit claim deeds, etc.); fuel; tobacco products; communications services; etc.
You can take a look at all potential Florida taxes here.
Buying a business in Florida
If you are planning to buy a business in Florida, there will be taxes that apply. Your business broker can help determine what taxes you owe and walk with you through the process. You can view potential business taxes here.
Resources for Florida Tax Information
For more information about Florida taxes, including the corporation income tax, sales tax, property tax and more, check out these resources.
Commercial Tax Information for All Businesses
Corporate Income Tax
Filing Taxes Online
Florida Department of Revenue
Florida Tax Information for New Residents
Homestead Exemption Information
Local Business Tax Information
Property Tax Calculator
Sales Tax Information
Tax Collector Offices by County
Taxpayer Bill of Rights
Tourist Impact Taxes