Business tax in Florida depends on your entity type and what you sell, but the headline numbers are simple: C corporations pay a flat 5.5% state income tax on net income above a $50,000 exemption, most sales of goods and taxable services carry a 6% state sales tax plus any county surtax, and pass-through entities owe no state income tax at all because Florida does not tax personal income. On top of those, employers pay reemployment tax, businesses with physical assets pay tangible personal property tax, and nearly every registered entity pays annual state and local fees.
Corporate Income Tax
Florida taxes corporate net income at a flat 5.5%.1Florida Senate. Florida Code 220.11 – Tax Imposed Every taxpayer gets a $50,000 exemption, so only income above that threshold is taxed.2Florida Senate. Florida Code 220.14 – Exemption A corporation with $200,000 in Florida net income would owe 5.5% on $150,000, or about $8,250.
This tax only reaches traditional C corporations. Sole proprietorships, partnerships, S corporations, and most LLCs are pass-through entities: profits flow to owners’ personal returns, and because Florida’s constitution bars a personal income tax, those profits face no state-level income tax.3Florida Senate. Florida Code 220.02 – Legislative Intent An LLC only owes the 5.5% rate if it has elected to be taxed as a C corporation for federal purposes.
Calendar-year corporations file the Florida Corporate Income/Franchise Tax Return (Form F-1120) by May 1. Corporations with a fiscal year ending June 30 file by the first day of the fourth month after year-end; other fiscal filers have until the first day of the fifth month.4Florida Department of Revenue. Florida Corporate Income/Franchise Tax Return F-1120 Filing late costs 10% of the unpaid tax per month, capped at 50%, or $50 per month up to $300 if no tax is owed.5The Florida Legislature. Florida Code 220.801 – Penalties; Failure to Timely File Returns
Sales and Use Tax
The state sales tax is 6% on most sales of tangible goods and certain services.6Justia. Florida Code 212.05 – Sales, Storage, Use Tax Customers pay it at the register, but the business is legally responsible for collecting the tax and remitting it to the Department of Revenue. A matching use tax at 6% applies when a business buys taxable goods from an out-of-state seller that did not collect Florida tax.
County Surtax
Counties may add a discretionary sales surtax on top of the 6% state rate.7Official Internet Site of the Florida Legislature. Florida Code 212.054 – Discretionary Sales Surtax Some counties charge nothing; others charge up to 2%.8Florida Department of Revenue. Discretionary Sales Surtax Rate Table Rate depends on where the transaction occurs or where goods are delivered, so a seller shipping across county lines may track several combined rates.
Remote Sellers
Out-of-state businesses with no physical presence in Florida still owe sales tax once they cross the economic nexus threshold. A remote seller with more than $100,000 in gross revenue from sales to Florida customers in a calendar year must register, collect, and remit the tax.
Commercial Rent Is No Longer Taxed
Florida used to charge sales tax on commercial lease payments. That tax was fully repealed effective October 1, 2025, so state sales tax and county surtax no longer apply to rent or license fees for commercial space with occupancy periods beginning on or after that date.9Florida Department of Revenue. Sales Tax on Commercial Rentals Repealed Effective October 1, 2025 Short-term lodging rentals of six months or less, parking and storage for motor vehicles, and boat docking or aircraft tie-down spaces remain taxable.
Registration and Filing
Any business making taxable sales registers with the Department of Revenue and receives a sales tax certificate along with an Annual Resale Certificate that lets it buy inventory tax-free; the resale certificate expires each December 31.10Florida Department of Revenue. Annual Resale Certificate for Sales Tax Returns are typically monthly or quarterly. A late return or payment costs 10% of the tax owed, with a $50 minimum.11Florida Department of Revenue. Florida Sales and Use Tax
Reemployment Tax
If you have employees, you owe reemployment tax, which funds unemployment benefits. Employers pay it entirely from company funds and cannot deduct it from wages.12Florida Senate. Florida Code 443.131 – Contributions The tax applies only to the first $7,000 of wages paid to each employee during the calendar year.13Florida Senate. Florida Code 443.1217 – Exemptions From Contributions
New employers pay 2.7% and hold that rate for their first ten quarters.14Florida Department of Revenue. Reemployment Tax Rate Information After that, the state assigns an experience-based rate reflecting the business’s history of unemployment claims. Experienced rates range from 0.1% to 5.4%, so employers with stable workforces pay far less than those with frequent layoffs. Employers report wages and pay the tax quarterly through the state’s online system.15Florida Department of Revenue. Reemployment Tax Return and Payment Information
Tangible Personal Property Tax
Businesses that own physical assets such as furniture, machinery, computers, or specialized equipment owe an ad valorem tax on the assessed value of those items as of January 1 each year. County property appraisers set the assessed value, and the millage rate varies by county and taxing district, just like real property taxes.
Each return qualifies for an exemption of up to $25,000 in assessed value.16Florida Senate. Florida Code 196.183 – Exemption for Tangible Personal Property To claim it, file a return with the county property appraiser by April 1. If your assets are worth less than $25,000, you may not need to file again until that value increases. Failing to file at all carries a 25% penalty on the tax levied against the property; filing late costs 5% per month up to 25%; and omitting assets adds a 15% penalty on the tax tied to the omitted items.17Florida Department of Revenue. Tangible Personal Property Brochure
Annual Report Fee
Every Florida corporation, LLC, limited partnership, and limited liability limited partnership files an annual report with the Division of Corporations. It updates the state on officers, registered agent, and address rather than reporting income, but the fees are mandatory.
The annual report fee is $150 for a for-profit corporation and $138.75 for an LLC.18Florida Department of State. Fees – Division of Corporations Reports filed after May 1 add a $400 late fee, bringing the total to $550 for a corporation or $538.75 for an LLC.19Florida Department of State. File Annual Report Miss the third Friday in September and the state can administratively dissolve the entity, and reinstatement carries its own fees.
Local Business Taxes
Counties and municipalities can charge their own business tax for the privilege of operating within their borders.20Florida Senate. Florida Code Chapter 205 – Local Business Taxes Paying it earns you a Local Business Tax Receipt. A business located in an incorporated city may need one from the city and one from the county.
The amount depends on the type of business and the local rate schedule, and rates vary widely across jurisdictions. Employees of another business are exempt from getting their own receipt; independent contractors are not. Operating without a required receipt costs 25% of the tax due, plus any additional fines the local government imposes by ordinance.21The Florida Legislature. Florida Code 205.053 – Penalty