The sales tax rate in Highlands County, Florida is 7.5%. That figure combines Florida’s 6% state sales tax with a 1.5% county discretionary surtax, and it applies to most taxable retail purchases made within the county. One important wrinkle: the county’s 1.5% only applies to the first $5,000 of any single item, so large purchases end up taxed at a lower effective rate.
How the 7.5% Breaks Down
Florida imposes a base 6% sales tax on the retail sale of tangible personal property and certain services statewide.1The Florida Legislature. Florida Statutes 212.05 – Sales, Storage, Use Tax The Highlands County Board of County Commissioners has layered a 1.5% discretionary sales surtax on top, authorized under Florida Statutes Section 212.054.2Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2026
The county piece is actually two separate levies. A 1% surtax has been in place since November 1, 1989, and a 0.5% addition took effect on January 1, 2017.2Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2026 On your receipt, they show up as a single combined rate.
The $5,000 Cap on Big Purchases
The 1.5% county surtax only applies to the first $5,000 of any single item of tangible personal property.3The Florida Legislature. Florida Statutes 212.054 – Discretionary Sales Surtax; Limitations, Administration, and Collection Everything above that is taxed at just the 6% state rate.
Say you buy a $20,000 vehicle. The 1.5% county surtax hits the first $5,000, adding $75. The 6% state tax applies to the full $20,000, adding $1,200. Total tax: $1,275, or an effective rate of about 6.375%. The more expensive the single item, the closer your effective rate gets to 6%.
One catch. If multiple items are normally sold as a set or assemble into a single working unit, Florida treats them as one item for the cap.3The Florida Legislature. Florida Statutes 212.054 – Discretionary Sales Surtax; Limitations, Administration, and Collection A boat and its trailer on one invoice share a single $5,000 threshold rather than getting two.
What’s Taxed and What Isn’t
The 7.5% rate covers most physical goods bought for personal or business use: furniture, electronics, appliances, clothing, sporting goods. Prepared restaurant food and catering are taxable. So are services that produce or repair tangible personal property, such as auto repair.
Florida’s statewide exemptions apply the same way in Highlands County. Most groceries intended for home preparation are tax-free, including milk, bread, produce, meat, eggs, cereals, and canned goods.4Florida Senate. Florida Statutes 212.08 – Sales, Rental, Use, Consumption, Distribution, and Storage Tax; Specified Exemptions Prescription drugs and certain medical supplies dispensed under a licensed practitioner’s order are exempt as well.5Florida Administrative Code. Florida Administrative Code R. 12A-1.020 – Licensed Practitioners; Drugs Over-the-counter medications generally are not, unless a specific holiday exemption applies.
Commercial rent changed recently. Florida used to charge sales tax on leases of commercial real property, but the state fully repealed that tax effective October 1, 2025. Businesses leasing office, retail, or warehouse space in Highlands County no longer owe sales tax on those lease payments.6Florida Department of Revenue. Sales Tax on Commercial Rentals Repealed Effective October 1, 2025
Sales Tax Holidays and Year-Round Breaks
Florida runs several sales tax holidays each year, and Highlands County participates. The back-to-school holiday typically covers much of the summer and exempts clothing and footwear at $100 or less, school supplies at $50 or less, learning aids at $30 or less, and personal computers and accessories at $1,500 or less. Exact dates and thresholds are set annually by the legislature, so check the Florida Department of Revenue for the current year’s schedule.
Since August 2025, certain disaster preparedness items are permanently tax-free in Florida, including batteries, portable generators, fire extinguishers, smoke and carbon monoxide detectors, fuel containers, and tarps. You don’t have to wait for a holiday to buy hurricane supplies without paying sales tax.
Online and Out-of-State Purchases
Buying online from a seller that doesn’t charge Florida tax doesn’t make the purchase tax-free. You owe use tax at the same 7.5% rate on taxable goods brought into or shipped into Florida for personal use.7Florida Department of Revenue. Florida Sales and Use Tax If you paid sales tax to another state, Florida credits that amount and you owe the difference.
The $5,000 cap works the same way on use tax. On a $10,000 piece of equipment bought from an out-of-state seller that doesn’t collect Florida tax, the 1.5% surtax applies only to the first $5,000, while 6% applies to the full amount.7Florida Department of Revenue. Florida Sales and Use Tax Most large online retailers now collect Florida tax automatically, but smaller sellers sometimes don’t, and the obligation then falls on you.
When the Surtax Expires
The county portion of the rate has scheduled sunset dates. The 1% surtax is set to expire on December 31, 2033, and the 0.5% addition runs through December 31, 2036.2Florida Department of Revenue. Discretionary Sales Surtax Information for Calendar Year 2026 Without a voter-approved renewal, the combined rate would fall to 6.5% after 2033 and to the 6% state-only rate after 2036. County commissions often seek renewal well before expiration, so whether the surtax actually sunsets depends on future ballot measures.