The sales tax rate in Kissimmee, Florida is 7.5%. That combines Florida’s 6% state sales tax with a 1.5% Osceola County discretionary surtax, and it applies to most retail purchases and a narrow set of services inside county lines. One important wrinkle on big-ticket items: the county’s 1.5% surtax only applies to the first $5,000 of any single item of tangible personal property. On a $10,000 purchase, you pay the full 7.5% on the first $5,000 and just the 6% state rate on the rest.
How the 7.5% Breaks Down
Florida’s base sales tax is 6% statewide under Chapter 212 of the Florida Statutes.1Florida Department of Revenue. Florida Sales and Use Tax Each county may add a discretionary sales surtax under Section 212.054.2Florida Statutes. Florida Statutes 212.054 Osceola County’s surtax totals 1.5%: a 1% levy running through December 31, 2045, and a 0.5% levy running through December 31, 2036.3Florida Department of Revenue. Discretionary Sales Surtax Information
The $5,000 surtax cap applies per item of tangible personal property, not per transaction. If you buy a $30,000 vehicle, the 1.5% surtax hits only the first $5,000 (an extra $75), while the 6% state tax applies to the full price. Buy three separate $5,000 items in the same trip and each one gets its own surtax calculation.2Florida Statutes. Florida Statutes 212.054
What the 7.5% Rate Applies To
The combined rate covers retail sales of tangible personal property, meaning physical goods you can touch or move: clothing, electronics, furniture, building materials, vehicles. It also applies to rentals or leases of commercial real property and to admissions at entertainment venues, including the theme parks that draw millions of visitors to the Kissimmee area each year.1Florida Department of Revenue. Florida Sales and Use Tax
Services are where people get tripped up. Florida taxes only a short list of them, including nonresidential cleaning, nonresidential pest control, and investigative or security services.1Florida Department of Revenue. Florida Sales and Use Tax Most professional services — attorneys, accountants, architects, doctors — are not subject to sales tax.
Short-Term Rentals Carry an Extra 6%
Because of Walt Disney World and the surrounding attractions, short-term rentals are a huge part of the Kissimmee economy, and they carry a tax layer most visitors don’t see coming. Osceola County imposes a 6% tourist development tax on rentals of living accommodations lasting fewer than 180 days, stacked on top of the 7.5% sales tax.4Office of Bruce Vickers. Tourist Development Taxes That covers hotels, motels, vacation homes, condos, timeshares, RV parks, and boats permanently moored and rented as lodging.
Combined, a guest staying at a Kissimmee hotel or vacation rental pays 13.5% in taxes on the rental charge. Hosts and property managers are responsible for collecting both taxes and remitting them to the right agencies.
What’s Exempt
Florida exempts several broad categories entirely. Groceries for home consumption — produce, dairy, meat, cereal, canned goods — are not taxed.5Florida Statutes. Florida Statutes 212.08 Prepared food sold for immediate eating, like restaurant meals and hot deli items, stays taxable, which catches some shoppers off guard.
Prescription drugs and prosthetic or orthopedic devices are also exempt.6Cornell Law School. Florida Administrative Code R. 12A-1.020 Over-the-counter medications are taxable, a distinction worth knowing at the pharmacy counter.
Sales Tax Holidays — With a Theme Park Exception
Florida periodically suspends tax on specific items during designated holiday windows. The 2026 back-to-school holiday begins July 20 and exempts clothing and shoes priced at $100 or less, school supplies at $50 or less, and personal computers and accessories at $1,500 or less. The 2026 package also includes a four-month holiday on camping, fishing, and hunting supplies.7Florida Senate. 2026 Tax Relief Package
For Kissimmee specifically: sales tax holidays do not apply to purchases made inside theme parks, entertainment complexes, airports, or public lodging establishments. Buying a laptop at a retail store during the holiday saves you tax; buying one inside a theme park gift shop does not.
Use Tax on Purchases From Out of State
Buy a taxable item from an out-of-state seller who doesn’t collect Florida tax, and you owe use tax at the same 7.5% rate when the item is brought into or delivered to Osceola County. The same rule applies if you bought something tax-free for resale and then kept it for personal or business use.1Florida Department of Revenue. Florida Sales and Use Tax
Businesses report use tax on their regular sales and use tax return. Individuals can report it on a Florida income tax return or directly to the Department of Revenue. In practice it comes up most often with large online purchases from unregistered sellers or with goods bought while traveling in lower-tax states.
If You’re the One Collecting Tax
Any business selling taxable goods or services in Kissimmee has to register with the Florida Department of Revenue before its first sale. Registration is done through the online Florida Business Tax Application (the electronic version of Form DR-1), and there’s no fee.8Florida Department of Revenue. Account Management and Registration Once processed, you receive a Certificate of Registration that authorizes you to collect sales tax and must be displayed at your place of business.9Florida Department of Revenue. Florida Business Tax Application
The Department assigns a filing frequency — monthly, quarterly, or annually — based on expected tax volume. Returns are due the first day of the month after the reporting period and become late after the 20th. January sales, for example, must be filed and paid by February 20.1Florida Department of Revenue. Florida Sales and Use Tax Even a zero-sales period requires a return; skipping the filing is a common mistake that triggers penalties.
File and pay electronically on time and you can deduct a collection allowance of 2.5% of the first $1,200 in tax due, capped at $30 per period.10Cornell Law School. Florida Administrative Code R. 12A-1.056 Miss the deadline and you lose the allowance and start accruing interest, which is set at 11% annually for the first half of 2026 and adjusts every six months.11Florida Department of Revenue. Tax and Interest Rates Percentage-based late-filing penalties stack on top, and chronic noncompliance can cost you your Certificate of Registration.
Hold on to exemption certificates and resale documentation. If an auditor asks and you can’t produce the paperwork, you’re liable for the uncollected tax even when the underlying sale genuinely qualified for the exemption.