Florida Income Tax Guide: What You Need to Know

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Florida is one of just nine U.S. states with no personal income tax — a key reason it’s so popular with retirees and residents seeking lower taxes. But while Florida doesn’t tax income, you’ll still encounter other taxes like sales, property, and corporate income taxes. This guide breaks down what you need to know about Florida’s overall tax burden.

Does Florida Have a State Income Tax?

The Florida income tax rate on personal income is 0%. Only nine states don’t charge income tax — Florida, Alaska, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. These states offer residents a chance to pay only federal taxes on the money they earn. 

Without an income tax, Florida is often a popular destination for retirees or others on a fixed income. However, states that don’t have a personal income tax tend to make up for it in other ways, such as the state sales tax or even county taxes.

What to Know About Florida Taxes

• Florida has no personal income tax
• You’ll still pay sales tax, property tax, and corporate income tax (if applicable)
• The average overall tax burden is low — just 6.33%, according to TurboTax
• Florida does not have estate or inheritance taxes

You’ll still need to file federal taxes, even if the state return isn’t required

Florida State Tax Rates and Rules

Below is a list of tax rates you could expect to pay on average in Florida.

Florida Sales Tax

Sales tax represents the vast majority of the taxes collected in Florida. The state has a sales tax that you pay when you buy most goods and some services. The sales tax rate can vary depending on where you are in the state, but it’s typically around 6% statewide. 

Other Florida taxes include:

• Tourist taxes on hotel stays, car rentals, and amusement machines
• Gasoline taxes
• Alcohol and tobacco taxes
• Use tax on online purchases

These taxes help fund various state and local programs and services. Nationwide, nearly half of state-level taxes are collected via sales tax, so the majority of total revenues generated by sales taxes in Florida are well above the norm. However, that doesn’t necessarily mean that the state is charging its residents more than other states.

According to TurboTax, Florida is one of the top states with the lowest overall tax burdens, coming in at 6.33%.

Does Florida Have Property Tax?

Florida levies property taxes that help fund:

• Local public schools
• Emergency services
• Roads and infrastructure
• Local government operations

Note: The average effective property tax rate in Florida is 0.91%, but it varies by county.

Does Florida Have an Estate or Inheritance Tax?

Florida does not charge an estate tax or an inheritance tax, so state residents who are heirs are exposed only to federal estate taxes. This means Florida does not impose a tax on the transfer of assets upon someone’s passing away. Keep in mind, though, that the federal government does have an estate tax, which may be levied on larger estates.

Florida Corporate Income Tax

Although there’s no Florida income tax for individuals, the state does charge a 5.5% corporate income tax rate. Also called a franchise tax, Florida levies the tax on all corporations for the privilege of conducting business and earning income within the state. It applies to all corporations, including those that the federal government taxes as corporations.

Filing Your Taxes in Florida

Since Florida has no state income tax, you don’t need to file a state income tax return. That means you won’t have to deal with the headache of filling out extra forms or worrying about deductions and credits for state taxes.

However, you’ll still need to file your federal income tax return with the Internal Revenue Service, like everyone else in the United States. But you can breathe a little easier knowing that you won’t have to worry about state income taxes on top of that.

Florida Tax Filing Overview

• No state income tax return required for individuals
• Corporate businesses may need to file with the Florida Department of Revenue
• All residents still need to file a federal income tax return with the IRS

Resources for Florida Taxpayers

Even though Florida’s tax system is relatively simple compared to some other states, you might still have questions or need assistance when it comes time to do them. Fortunately, there are resources available to help:

• Tax preparation services: If you’re unsure about how to file your federal income taxes, you can seek assistance from tax preparation services like H&R Block or TurboTax. These services can walk you through the process and help ensure you’re getting all the deductions and credits for which you’re eligible.
• Tax professionals: If your tax situation is more complex or if you have questions specific to Florida taxes, you might consider consulting with a tax professional. These experts can provide personalized advice based on your individual circumstances and help you navigate any tax-related issues.
• Online resources: There are plenty of online resources available to help you understand taxes in Florida, including the Florida Department of Revenue website. Here, you can find information about sales tax rates, property taxes and other tax-related topics.

The bottom line is that nothing is tax-free when you live in Florida, whether it’s a mobile home or a mansion. Though having no state income tax comes with many perks, you’ll still need to pay other taxes like sales tax and property tax, but the absence of state income tax can save you money and simplify your tax filing process. Just be sure to stay informed about your tax obligations and take advantage of available resources if you need assistance with your unique tax situation in the Sunshine State.

Joel Anderson contributed to the reporting for this article.

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