This guide explains what taxes Florida businesses have to pay, what forms you need to file, and what the deadlines are.
Florida Business Tax Application / Form DR-1
Form DR-1: Florida Business Tax Application is the form you use to tell the Florida Department of Revenue that you’re in business. You also use this form when your business details change.
This form reports what business activities you engage in. It helps both you and the FL DOR understand what state taxes you need to pay.
Sales and Use Tax
Sales and use taxes apply to:
- Sales, rentals, or repairs of products
- Certain property rentals, leases, or licenses
- Real property contractors
- Other listed services
- Fuel sales
- Secondhand goods or scrap metal
- Coin-operated amusement machines
- Vending machines
Prepaid Wireless E911 Fee
This fee applies to businesses that sell prepaid phones, phone cards, or calling arrangements.
Solid Waste — New Tire Fee, Lead-Acid Battery Fee, and Rental Car Surcharge
Solid waste fees and surcharges apply to tire sales, lead-acid battery sales, car-sharing, and motor vehicle rentals.
Gross Receipts Tax on Dry-Cleaning
Dry-cleaning services have a special tax and almost must complete Registration Package (GT-400401) for fuels and pollutants.
Reemployment Tax
Reemployment tax is the Florida unemployment tax. It applies to almost any business with employees who are not owners.
If you lay employees off, talk to your tax accountant about whether you have to pay reemployment tax on severance pay, but it’s usually a moot point since you probably already hit the cap on reemployment taxes anyway.
There is no other payroll tax in Florida since Florida doesn’t have a personal income tax.
If you use independent contractors, you must complete Independent Contractor Analysis (Form RTS-6061).
Communications Services Tax
The Florida communications services tax applies to
- Telephone services
- Paging services
- Fax services
- Video services including TV, streaming, and satellite
Documentary Stamp Tax
Businesses that enter into written obligations for customers to pay money that aren’t recorded with the Clerk of Court or County Comptroller pay this tax.
Examples include
- Financing agreements
- Title loans
- Pay-day loans
- Liens
- Promissory notes
Gross Receipts Tax on Electrical Power and Gas
This tax applies to utility companies.
Severance Taxes and Miami-Dade County Lake Belt Fees
This tax applies to businesses who extract the following types of materials from the soils or waters of Florida
- Oil
- Gas
- Sulfur
- Solid minerals
- Phosphate rock
- Lime rock
- Sand
- Heavy minerals
Enrollment to File and Pay Tax Electronically
You can enroll to electronically file the tax returns for the above taxes and pay them electronically. If you have more than $100,000 per year in remote sales, you must file electronically.
Other Taxes That Apply to Florida Businesses
These taxes are separate from your Business Tax Application.
Property Tax
Most businesses that own real estate in Florida pay property tax.
Business Tax Receipt
Many cities and counties require you to obtain a business tax receipt if you do business in their jurisdiction. It is usually a fixed registration fee with tiers based on your type of business and your size.
Check your city and county websites for details.
Florida Corporate Income Tax
Florida has an income tax for corporations only. The tax is a flat rate of 5.5%. There is no income tax for other types of businesses or individuals.
The follow business entities are subject to the corporate income tax
- All corporations including tax-exempt organizations
- All banks and savings associations
- All associations or artificial entities doing business in Florida
- All foreign or out-of-state corporations doing business in Florida
- LLCs that elect to be treated as C-corporations for federal tax purposes
- An LLC classified as a partnership if one or more partners is a corporation
- Homeowner and condo associations that file federal corporate income tax returns
- Political organizations that file federal Form 1120-POL
- S-corporations that pay federal income tax on Line 22c of federal Form 1120S
- Tax-exempt organizations that have unrelated trade or business income under federal income tax rules
You may need to file a Florida Form F-1120 Corporate Income Tax Return even if you don’t owe taxes.
Florida Corporate Income Tax Exemption
You can subtract $50,000 as an exemption when calculating your Florida net income.
Florida Corporate Income Tax Credits
Florida corporations can qualify for several state tax credits to offset their income taxes.
Job Incentives
- Internship tax credit
- Rural job tax credit
- Urban high-crime area job tax credit
- Certain wages not deductible under federal tax law
Investment Incentives
- Capital investment tax credit
- Community contribution tax credit
- Contaminated site rehabilitation tax credit or voluntary cleanup tax credit
- Entertainment industry tax credit
- Hazardous waste facility tax credit
- New markets tax credit
- New worlds reading initiative tax credit
- Research and development tax credit
- Tax credits for contributions to scholarship-funding organizations
- State housing tax credit
- Strong families tax credit
Credits for Other Taxes Paid
- Florida Alternative Minimum Tax (AMT) credit
Incentives for Insurers and Health Maintenance Organizations
- Florida health maintenance organization consumer assistance assessment credit
- Florida Life and Health Insurance Guaranty Association (FLAHIGA)
Energy Incentive
- Renewable energy production tax credit
Filing and Paying Florida Corporate Income Taxes
Due Date
The later of
- October 1st for tax years ending June 30th
- The first day of the 5th month following the close of your tax year
- The 15th day following the due date of your federal return without extensions
Other Corporate Income Tax Rules
- Pay quarterly estimated taxes if you will owe $2,500 or more
- Six month extensions to file are alowed if you pay the tenative tax owed
- You can use the shorter Form F-1120A if you owe $2,500 or less in taxes, have net income of $45,000 income or less, do 100% of your business in Florida, and meet other requirements
