Florida doesn’t have a state income tax. Other taxes Florida residents pay include property tax, sales tax, and business taxes.
Florida Income Tax
Florida has no personal income tax at all. Therefore, there is no requirement to file a Florida state tax return as an individual.
Other State Income Taxes
Living in Florida doesn’t mean you never have to file a tax return in another state. You may have to file a state tax return in another state if you:
- Just moved from that state
- Split time between two states (e.g., snowbirds)
- Worked in another state during the year (even temporarily)
- Own a business or rental property in another state
Florida Dividends and Interest Tax
Florida does not have an income tax on dividends or interest. Some “tax-free states,” like New Hampshire, have no income tax on job income but do tax dividends and interest. Florida has no income taxes at all.
Florida Capital Gains Tax
Florida does not have a capital gains tax including on real estate sales. Your home sale or other capital gains may be subject to the federal capital gains tax.
Does Florida tax pensions?
No state income tax really means no state income tax. Florida does not tax pensions.
Does Florida tax Social Security?
No state income tax really means no state income tax. Florida does not tax Social Security.
Does Florida tax 401(k) distributions?
No state income tax really means no state income tax. Florida does not tax 401(k) distributions.
Other Florida Taxes
Florida Property Tax
Florida residents do pay a property tax. It’s actually below the national average despite the state having no income tax.
You can learn more about Florida property taxes here. Don’t forget that you can usually deduct your property taxes as a State And Local Taxes itemized deduction.
Florida Sales Tax
Florida does have a sales tax on almost all purchases except groceries. Florida’s sales tax rates are slightly above the national average. You can learn more about Florida sales taxes here.
Florida Corporation Income Tax
Florida does have an income tax on corporations. The rate is 5.5%.
The Florida corporate tax rate only applies to C-corporations. It doesn’t apply to S-corporations, LLCs, partnerships, or sole proprietors.
You can learn more about Florida corporation income taxes here.
Florida Employer Tax Withholding
Employers in Florida do need to withhold and pay payroll taxes. In addition to federal tax withholding, employers have to pay the state unemployment tax. You’ll need to fill out a Florida Business Tax Application to do so.
Florida Inheritance Tax
Florida does not have an inheritance tax.
Florida Estate Tax
There is no Florida estate tax, but there are forms you may need to file with the Department of Revenue.
Florida Tourist Tax
Florida’s tax burden stays low thanks to the taxes that tourists pay. Florida has steep tourist taxes that apply to hotel rooms and other short-term rentals.
If you’re a landlord, you should be aware of Florida’s rental property taxes. Any rental that’s six months or less may be subject to both normal sales tax and the transient rental tax.
Florida Tolls
Florida has a ton of tolls roads which some people might consider a form of a tax. It’s worth noting that the tolls you pay are generally not deductible on your federal taxes. The main exception would be if you’re claiming a business expense for a business trip.
