Florida does have state taxes, just not a personal income tax. The state funds itself through a 6% sales tax, a 5.5% corporate income tax, locally administered property taxes, and a handful of transaction-based taxes on things like real estate transfers and mortgages. What Florida skips — individual income tax, estate tax, and inheritance tax — is a real benefit, but it isn’t the whole picture.
What Florida Doesn’t Tax
Florida’s constitution bars the legislature from taxing the personal income of individuals. That means no state tax on wages, salaries, tips, investment gains, interest, or dividends, and no separate state income tax return to file. The protection sits in Article VII, Section 5, and applies to “natural persons” rather than businesses.
Retirement income gets the same treatment. Social Security, pensions, 401(k), 403(b), and IRA distributions, and annuity payments are all free from Florida tax regardless of amount. Federal income tax may still apply to some of these, but the state takes nothing.
Florida also imposes no estate tax and no inheritance tax. Heirs of a Florida resident owe nothing to the state on what they inherit. There is no state gift tax either, so lifetime transfers are governed only by federal rules. A federal estate tax can still apply to very large estates.
Sales and Use Tax
The state’s primary revenue source is a 6% sales tax on most goods and some services.1Florida Dept. of Revenue. Florida Sales and Use Tax It covers tangible personal property such as electronics, clothing, vehicles, and furniture, along with commercial rentals and admissions to events and venues. Sellers collect it at checkout and remit it to the Department of Revenue.
If you buy something from an out-of-state seller that doesn’t collect Florida sales tax, you owe a matching 6% use tax directly to the state.1Florida Dept. of Revenue. Florida Sales and Use Tax Skipping it can mean penalties and interest if an audit catches up with the purchase.
What’s Exempt
Several everyday categories are not taxed. Groceries intended for home preparation — bread, dairy, meat, produce, canned goods, cereal, eggs — are exempt, though prepared food like deli sandwiches and restaurant meals is taxable. Prescription drugs are exempt. So are many over-the-counter remedies, including pain relievers, antacids, cold medicines, insulin, and first aid kits.2Florida Dept. of Revenue. Nontaxable Medical Items and General Grocery List Toothbrushes, toothpaste, floss, and mouthwash are exempt, as are tampons, sanitary napkins, panty liners, and menstrual cups. Cosmetics and toilet articles stay taxable even if they contain medicinal ingredients, unless dispensed by prescription.
County Surtax
Counties can add a discretionary sales surtax on top of the 6% state rate to fund transportation, schools, or healthcare. Local rates run from 0.5% to 1.5%, and some counties impose none. The rate that applies is the one at the delivery destination, so a shipment to a different county uses that county’s rate.3Florida Dept. of Revenue. Discretionary Sales Surtax
Property Tax
There is no state property tax in Florida, but counties, cities, school districts, and special taxing districts all levy their own. The average effective rate statewide works out to roughly 0.74% of market value, with wide variation depending on where the property sits and which local authorities tax it.
Homestead Exemption
Making a Florida property your permanent residence qualifies you for a homestead exemption that reduces your taxable value by up to $50,000. The first $25,000 applies to all property taxes, including school district taxes.4The Florida Statutes. Florida Statutes 196.031 – Exemption of Homesteads An additional exemption of up to $25,000 applies to assessed value between $50,000 and $75,000, but that second portion doesn’t reduce school taxes.5Florida Dept. of Revenue. Property Tax Information for Homestead Exemption The additional amount adjusts yearly for inflation.
Apply with your county property appraiser by March 1 of the tax year. Late applications are generally accepted through mid-September, after which the window closes for the year.
Save Our Homes Cap
Once your homestead exemption is in place, the Save Our Homes benefit caps annual increases in your property’s assessed value at the lesser of 3% or the change in the Consumer Price Index.6Florida Dept. of Revenue. Save Our Homes Over years of rising values, the gap between assessed and market value can grow substantially. If you sell and buy another Florida home, a portability provision lets you carry some of that accumulated savings forward.
Taxes When You Buy or Sell Real Estate
Transferring Florida real estate triggers a documentary stamp tax on the deed. Outside Miami-Dade, the rate is $0.70 per $100 of the sale price, so a $300,000 home runs $2,100. Miami-Dade uses a base rate of $0.60 per $100 and adds a $0.45-per-$100 surtax on most transfers, though that surtax doesn’t apply to deeds for single-family homes.7Florida Dept. of Revenue. Documentary Stamp Tax The county clerk collects the tax at recording.
Mortgages and other loan documents secured by Florida real property carry their own documentary stamp tax at $0.35 per $100 of the loan amount.7Florida Dept. of Revenue. Documentary Stamp Tax A $250,000 mortgage adds $875 in stamps. On top of that, new mortgages are generally subject to a one-time nonrecurring intangible tax of 2 mills, or $0.002 per dollar of the loan amount.8Florida Dept. of Revenue. Nonrecurring Intangible Tax That’s another $500 on a $250,000 loan, usually paid at closing.
Business Taxes
Corporations doing business in Florida pay a 5.5% tax on net income, applied to Florida-based corporations and out-of-state corporations with Florida-source income alike.9The Florida Statutes. Florida Statutes 220.11 – Tax Imposed The first $50,000 of net income is exempt.10Florida Senate. Florida Statutes 220.14 – Exemption Sole proprietorships, general partnerships, and most S-corporations are not subject to the corporate income tax; their income passes through to the owners, who then benefit from the lack of personal income tax.
Employers pay a reemployment tax (Florida’s unemployment insurance) entirely on their own, with nothing withheld from employee paychecks. New employers start at 2.7% on the first $7,000 of each employee’s annual wages, and that initial rate holds for the first 10 calendar quarters of reporting.11The Florida Statutes. Florida Statutes 443.131 – Contributions After that, the rate adjusts based on the employer’s experience rating. For 2026, rates run from 0.1% ($7 per employee) up to 5.4% ($378 per employee).12Florida Dept. of Revenue. Reemployment Tax Rate Information
Businesses that own equipment, furniture, or fixtures must file a tangible personal property return with the county property appraiser each year by April 1.13Florida Dept. of Revenue. Taxpayers – Tangible Personal Property Tax The first $25,000 of assessed value per return is exempt.14The Florida Statutes. Florida Statutes 196.183 – Exemption for Tangible Personal Property Missing the deadline or omitting property carries steep penalties, so filing on time matters even for small businesses with modest equipment.