Florida State Income Tax: How It Works, Who Pays
Florida doesn’t have an income tax, but there are several other state payments you should know about.
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Managing Editor Florida is known as one of the lowest-taxed states in the country, in part because there is no state income tax. The state government largely funds its operations through fees, sales taxes and revenue from the federal government
While Florida does not tax personal income, it’s important to note that the state does place a levy on corporate profits. So if you own a company doing business in Florida, you may owe money to the state government.
Local governments in Florida also depend on property taxes for revenue. So even though there is no statewide property tax, you’ll want to consider these municipal costs when calculating the tax burden you’ll face in Florida.
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- Federal: $79 to $139. Free version available for Simple Form 1040 returns only.
- State: $0 to $69 per state.
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Disclosures: TurboTax Free Edition is for Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Roughly 37% of taxpayers qualify.
Does Florida have a state income tax?
There is no state tax on personal income in Florida. This applies to both earned income and unearned income, such as capital gains from investments
» MORE: Take a closer look at the other income tax-free states
Florida corporate income tax
Florida levies a 5.5% tax on the income of any corporation doing business in the state. You may have to pay corporate taxes to the state for "conducting business, deriving income, or existing within Florida
If only part of your business is generated in Florida, you can calculate a share of your income that is subject to Florida taxes by using a formula that takes into account how much of your sales, property and payroll are located in the state.
Once you have your Florida corporate income, you can subtract a $50,000 exemption to arrive at your taxable total.
What is Florida's state sales tax?
The Florida sales tax is 6% for most products, and the proceeds make it the single largest source of tax revenue for the state government.
There are a few situations in which you could pay more or less than 6%. It all depends on where you are and what you’re purchasing.
- If you’re buying a new mobile home from a retailer, you’ll pay only 3% in state sales taxes.
- Using “amusement machines,” such as arcade games and pool tables, incurs a tax of 4%.
- Payments for commercial real estate leases are taxed at 2%.
- Electricity is taxed at 6.95%.
» Dive deeper: Learn more about Florida sales tax
Local sales taxes in Florida
In addition to the state sales tax, some municipalities have their own sales taxes that can reach up to 1.5%. That means that in some cases, you’ll pay as much as 7.5% in Florida sales taxes
Does Florida have property tax?
Florida does not have a state property tax, though the state government often helps local officials administer their own property taxes.
While Florida property tax rates vary by county, taxpayers in the state tend to pay more than people in many other parts of the country. Floridians shell out an average of $1,608 per capita in property taxes, according to an analysis by the Tax Foundation. That places the state 29th in the U.S. for that metric
» MORE: How property tax deductions work.
Best Overall Tax Software
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- Federal: $79 to $139. Free version available for Simple Form 1040 returns only.
- State: $0 to $69 per state.
- Expert help or full service filing is available with an upgrade to Live packages for a fee.
Disclosures: TurboTax Free Edition is for Simple Form 1040 returns only (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Roughly 37% of taxpayers qualify.
When are Florida taxes due?
Florida does not have a state income tax. The deadline for filing a 2024 federal tax return was April 15, 2025, or is Oct. 15, 2025, with an extension.
Is Florida a low-tax state?
That middle-of-the-road ranking on property taxes stands in contrast to the Tax Foundation’s overall ranking of Florida among the lower-taxed states. The state ranks No. 4 in the foundation's 2025 Tax Competitiveness Index
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- 1. Urban Institute. Project: Florida. Accessed Jan 17, 2025.
- 2. Florida Department of Revenue. Does Florida Have a Capital Gains Tax?. Accessed Jan 17, 2025.
- 3. Florida Department of Revenue. Florida Corporate Income Tax. Accessed Jan 17, 2025.
- 4. Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2024. Accessed Jan 17, 2025.
- 5. Tax Foundation. Taxes in Florida. Accessed Jan 17, 2025.
- 6. Tax Foundation. 2025 State Tax Competitiveness Index. Accessed Jan 24, 2025.
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