Taxes in Orlando, Florida break down into a few predictable pieces: a 6.5% sales tax on most purchases, a combined property tax rate of roughly 19 mills (about $19 per $1,000 of taxable value), a 12.5% total tax on hotel stays and other short-term rentals, and no state personal income tax at all. Businesses face a 5.5% corporate income tax on net income over $50,000, and communications bills carry a local tax of 5.52%. Here is what each one actually costs you.
Sales Tax
Most taxable purchases in Orlando are taxed at 6.5%. That is Florida’s 6% statewide sales tax plus a 0.5% discretionary surtax from Orange County, collected together at the register.1Florida Dept. of Revenue. Florida Sales and Use Tax
The 6.5% rate applies to electronics, clothing, furniture, restaurant meals, prepared foods, and most other everyday goods and many services. Candy and soft drinks are taxable. Online purchases from out-of-state retailers who did more than $100,000 in Florida sales the prior year are taxed at the same 6.5%.1Florida Dept. of Revenue. Florida Sales and Use Tax
What Is Not Taxed
Most groceries you cook at home carry no sales tax, as long as they are not prepared for immediate consumption. Prescription medications are exempt. Florida also runs periodic sales tax holidays each year that temporarily remove the tax from items like school supplies, disaster-preparedness gear, and certain recreational equipment; the exact dates and eligible items change annually, so check the Florida Department of Revenue before large purchases during those windows.
Hotel and Short-Term Rental Tax
If you are staying in a hotel, motel, vacation rental, or any other short-term accommodation in Orange County, you pay a 6% tourist development tax on the nightly rate on top of the 6.5% sales tax. That brings the total to 12.5%. The tourist development tax applies to any rental of six months or less.2Florida Dept. of Revenue. Local Option Transient Rental Tax Rates
Revenue from the tourist tax funds the Orange County Convention Center and regional tourism promotion. If you host on Airbnb or Vrbo, you are responsible for collecting and remitting the tax. Some platforms handle it automatically; verify with the Orange County Comptroller. Failing to remit can lead to liens on the property or loss of the right to operate as a short-term host.
Property Tax
Property taxes in Orlando are calculated using millage rates, where one mill equals $1 of tax per $1,000 of taxable value. Your bill combines separate millage rates set by the City of Orlando, the Orange County Board of County Commissioners, the Orange County School Board, the St. Johns River Water Management District, and the local library system, among others. For property inside Orlando city limits, the combined millage rate was approximately 19.09 mills in 2025.3Orange County Property Appraiser. Chart of Final Rates 2025
In dollars: a home with a taxable value of $250,000 after exemptions would owe about $4,772 at that rate. The Orange County Property Appraiser sets each property’s assessed value.
Homestead Exemption
Owner-occupants who make an Orlando home their permanent residence can claim a homestead exemption worth up to $50,000 off the assessed value. The first $25,000 applies to all taxes, including school district taxes. The additional $25,000 applies to assessed value between $50,000 and $75,000 and covers only non-school levies.4Florida Dept. of Revenue. Property Tax Information for Homestead Exemption The exemption does not apply automatically; you have to file it with the Orange County Property Appraiser.5The Florida Legislature. Florida Statutes 196.031 – Exemption of Homesteads
Save Our Homes Cap
Once a home has a homestead exemption, Florida’s Save Our Homes rule caps annual increases in assessed value at 3% or the change in the Consumer Price Index, whichever is lower.6Florida Dept. of Revenue. Save Our Homes Assessment Limitation and Portability Transfer Even in a hot market, taxable value stays close to last year’s. Non-homestead properties, including second homes and investment rentals, face a looser 10% annual cap. If you sell a homestead and buy another in Florida, you can port accumulated savings to the new home.
Early Payment Discounts
Florida gives sliding discounts for paying ahead of the March 31 deadline:7The Florida Legislature. Florida Statutes 197.162 – Discount for Early Payment of Ad Valorem Taxes
- November: 4%
- December: 3%
- January: 2%
- February: 1%
- March: no discount, full amount due by March 31
On a $5,000 bill, paying in November saves $200. Taxes unpaid after March 31 become delinquent and start accruing interest.
No State Personal Income Tax
Florida’s Constitution prohibits the state from taxing the personal income of individuals.8FindLaw. Florida Constitution Art VII Section 5 That covers wages, salaries, retirement income, and investment gains, at any income level. There is no state withholding on your paycheck and no state income tax return to file. Florida funds state government through sales taxes, corporate income taxes, and various fees instead.
Taxes for Business Owners
Corporate Income Tax
Corporations doing business in Florida pay a 5.5% corporate income tax on net income exceeding $50,000.9Florida Dept. of Revenue. Corporate Income Tax Sole proprietors, partnerships, and S-corporations generally are not subject to it; their income passes through to owners, who still owe no state tax on it.
Tangible Personal Property Tax
Businesses must report the value of equipment, furniture, fixtures, and other tangible personal property to the Orange County Property Appraiser each year, and it is taxed at the same millage rate as real estate. The first $25,000 of assessed value per return is exempt, so many small businesses owe nothing, and if your total stays at or below that threshold the filing requirement is waived.10The Florida Legislature. Florida Statutes 196.183 – Exemption for Tangible Personal Property
Commercial Rent Tax Is Gone
Florida used to apply sales tax to commercial lease payments, most recently at 2%. As of October 1, 2025, both the state and local sales tax on commercial rent are fully repealed. Businesses leasing office, retail, or warehouse space in Orlando no longer pay it.
Communications Services Tax
Phone, internet, cable, and streaming bills in Orlando include a communications services tax. The combined local rate is 5.52%, on top of the state portion, and it shows up as a line item on your monthly statement.11Florida Dept. of Revenue. Changes in Local Communications Services Tax Rates Effective January 1, 2026
Federal Taxes Still Apply
No state income tax does not change your federal bill. Orlando residents owe federal income tax on wages, self-employment income, and investment gains. For the 2026 tax year, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly, with brackets running from 10% on the first $12,400 of taxable income (single) up to 37% on income above $640,600.12Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 Self-employed residents also owe federal self-employment tax: 12.4% for Social Security on net earnings up to $184,500 in 2026, plus 2.9% for Medicare with no cap.13Social Security Administration. Contribution and Benefit Base One useful federal rule for homeowners: if you rent your home for fewer than 15 days during the year, you do not have to report the rental income at all.14Internal Revenue Service. Topic No. 415, Renting Residential and Vacation Property